The California Foreclosure Process

The California Foreclosure Process

Step One, Day 0:
The lender (or trustee for the lender) files a Notice of Default with the county, after the property owner (trustor) doesn't make his loan payment. The owner may be behind anywhere from 15 days to 12 months (or more). If the owner loses their property at the sale, they lose their, equity and credit at the trustee sale auction. Offers can be accepted by the owner which include cash for the seller's equity and back payments due, taking over the existing loans "subject to" .

Step Two, Day 90:
The lender (or trustee for the lender) files a Notice of Trustee Sale with the county. This notice is given to the borrower and the public, stating the lender is going to sell the property at public auction within the next two to five weeks. This is probably the last opportunity to sell the property fast before the auction.

Step Three, Day 104+:
At the trustee sale auction buyers are required to have all cash or cashiers checks for the amount they are bidding. However, the buyers are not able to fully examine the property, or obtain title insurance. Any tax liens, senior loans, or other liens are the responsibility of the buyer.

Step Four, Beyond Day 104:
If no one bids at least the minimum set by the lender, the property reverts to the lender. The trustee must then file a Trustee's Deed to convey title to the lender. Once this occurs, the property becomes an "R.E.O." (Real Estate Owned) and can be purchased directly from the lender. The lender usually provides a new loan. This stage is conceded to be the easiest avenue for buyers, and the home will be vacant.

Non-judicial: Used most often by lenders because deficiency judgments not available to them in most cases. The loan document must contain a "power of sale clause" to foreclose out of court.
Judicial: Used when lender will seek a deficiency or if the loan documents had no "power of sale clause".
Deficiency judgments: Available to lender only in judicial foreclosure. Not available if the loan was a "purchase money loan".
Redemption: Not available to borrower if property sold at a trustee sale. In the case of a judicial foreclosure, the property may be redeemed in one of two ways. If a deficiency judgment was obtained (the property sold for less than what was owed), the borrower has twelve months to redeem. If no deficiency, the borrower has three months.

Request Free Consultation

Let us help you. Please complete and send this form to us for FREE
HELP! All responses are confidential.

Your Contact Information

*Name:
*Email:
*Phone:

Property Information

Address:
City:
State:
Zip:
Square footage:
Total amount owed:
What do you feel the value of your home is?:
How many loans do you have?:
How many months are you behind on your payments?:
Have you received a Notice of Default?:

Additional Information

Do you feel you have a financial hardship?:
If yes, what is your hardship?:
Are you currently occupying the property?:
Is your property currently listed by a broker?:

Note: Fields with an * are required

PLEASE NOTE: When clicking "Submit" on forms within this web site you may need to hold down "Ctrl" while clicking to prevent pop-up blockers installed on your computer from blocking the confirmation message.

All measurements and calculations of area are approximate. Information provided by Seller/Other sources, not verified by Broker. All Interested Persons should independently verify accuracy of above information.