Earlier this week, a post in one of our local Facebook groups lit up the comment section. An elderly homeowner reportedly returned after being away for some time and found her locks changed. According to the post, a realtor had ordered the rekey. Within minutes, emotions were running high and advice was flying –some of it not just wrong but potentially illegal.
Let’s clear the air. A random agent cannot simply change the locks on someone’s house because they feel like it. That is not how property rights work. But there are very specific circumstances where a lender can legally rekey a property – and it usually has nothing to do with “taking” the home.
Most mortgages, including reverse mortgages, require the borrower to occupy the property as their primary residence. If the home is no longer owner-occupied, rented out without lender approval or appears abandoned, that can trigger a default under the loan terms. Reverse mortgages in particular require the homeowner to live in the property as their principal residence. Extended absences – often defined as more than 12 consecutive months for medical reasons – can cause the loan to become due and payable.
In addition, most standard deeds of trust include a clause allowing the lender to protect and preserve the property if it is vacant, abandoned or in danger of damage. If a home appears derelict – overgrown yard, piled mail, utilities shut off – the bank may order what’s called a “property preservation” action. That often includes rekeying one secondary door to determine occupancy and secure the property. It is not the same thing as foreclosure, and it is not a legal transfer of possession.
Here is the critical distinction: A lender cannot simply take possession of an occupied home without going through foreclosure and, if necessary, an unlawful detainer action, commonly known as eviction. Even after foreclosure, if someone is living in the property, the new owner must follow California’s legal eviction process. A rekey done to assess vacancy is not the same as legally removing an occupant.
So, what should you do if you come home and find your locks changed and a notice posted?
First, do not break a window or force entry. That can escalate a situation quickly. Instead, read the notice carefully. Property preservation companies are required to leave contact information. Call the number provided and calmly explain that you are the owner and the home is occupied.
Second, contact your mortgage servicer immediately. Ask whether the loan is considered in default and why a preservation order was issued. If you have a reverse mortgage, clarify whether your occupancy status has been questioned.
Third, gather documentation showing occupancy. Utility bills, driver’s license address and recent mail delivered to the property can help resolve the issue quickly.
Finally, if foreclosure has been filed or you believe your rights have been violated, consult a qualified real estate attorney before taking action.
The bottom line is this: Banks cannot randomly change locks and take houses. But if a property appears abandoned or violates occupancy rules, a lender may act to secure its collateral. Before social media turns a situation into a bonfire, it’s worth understanding the legal framework. Knowing your loan terms – and keeping communication open with your lender – can prevent a very unpleasant surprise at your own front door.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs and the surrounding mountain communities. Reach her at (909) 442-1345, visit www.HomesInLakeArrowhead.com and follow her on social media, @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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