If California real property is being sold anytime before the property is being foreclosed upon, is withholding required?
Yes, withholding is required. The automatic exemption from withholding due to foreclosures applies when the property is acquired under any of the following circumstances: • At a sale due to a power of sale under a mortgage or deed of trust. • At a sale due to a decree of foreclosure. • By a deed in lieu of foreclosure. Note: A sale in anticipation of a pending foreclosure action does not qualify as an exemption. Withholding is required.
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