California Foreclosure Law

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California Foreclosure Laws

Typical California Foreclosure Time Frame – California foreclosure proceedings can take as long as 120 days.

Judicial Foreclosure – Yes

Non-Judicial Foreclosure – Yes

Types of Security Instruments – Mortgage and Deed of Trust

Right of Redemption Period – Judicial foreclosure only, and only with an order from the court.  Typical time given by the courts is up to one year.

California foreclosure law provides provisions for both judicial and non-judicial foreclosures for lenders.  In a non-judicial foreclosure, the lender is not allowed a deficiency judgment, and a judicial foreclosure does allow for a deficiency judgment.

According to California foreclosure law, in order for a judicial foreclosure to be sought, it is necessary for a power of sale to be omitted from the deed of trust or mortgage contract.  If the lender is looking to seek a deficiency judgment then a judicial foreclosure may be sought as well.  The lender must sue the borrowers of the mortgage to obtain an order of sale and a decree of foreclosure.  In these circumstances, the courts may order up to a one-year right of redemption period for the borrowers.

For a non-judicial California foreclosure, there must be a power of sale clause in the deed of trust or the mortgage contract.  The power of sale must include information about the time, place, and all terms of the sale. If the power of sale does not include the terms of the sale then the following procedure must be followed: the trustee for the property must file a Notice of Default with the county in which the property is located. 

Once this notice is filed with the county a copy of the notice must be mailed by certified mail within 10 days.  The buyer is allowed a total of 90 days from the filing of the Notice of Default to correct the default amount.  If the default is not corrected a Notice of Sale is then recorded at the county office.  The notice must state that the lender will be selling the property at a public auction in 21 days.  A copy of the notice of sale must be mailed by certified mail to the borrower.

In addition to mailing the copies of the notice of sale, it must also be published in the public newspaper for a minimum of once a week for at least three consecutive weeks prior to the sale of the property.  In addition, a copy of the notice is also posted on the property and in a public place as well, which will normally be the county courthouse.
The auction must be held in a public place, which is set forth and designated in the Notice of Sale, including the time.  A representative of the lender must conduct the sale.  The high bidder is required to pay using either cashier’s check or cash immediately for the full amount of the bid.  Once the sale is completed, the high bidder receives a trustee’s deed for the property.

For more information on California foreclosure laws click here.

 

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The information found on this site is not intended to be legal advice. The foreclosure process is highly case specific and laws vary throughout the United States. Please seek professional legal counsel before entering into any contract regarding any real property or stopping the foreclosure on any real property. By using this site you consent to the terms posted here.