Foreclosure Process In California

There are two types of foreclosure in California.  The first, Judicial foreclosure is the rarer of the two, is when a lender sues the home owner.  The second, and more popular is non-judicial foreclosure; this method is preferred due to the expedited results and lower costs.

California has a specific foreclosure process that it adheres to. 

The first step of the California foreclosure process is Notice of Default - when the homeowner fails to meet the terms of their home loan, a notice is recorded.  In California, the home is now officially in pre-foreclosure.   There is still some flexibility to the options available to the owner and lender alike to settle the breach of the home loan.

Notice of Trustee Sale - the notice of trustee sale can be recorded after only three months from the notice of default.  In California, the home is in pre-foreclosure at this point.

Auction- the auction can take place twenty days from the notice of trustee sale record.

At this stage the auction can produce different scenarios including postponements, a sale to the bank, a sale to a third party, or a cancellation depending on the negotiations made between the seller and buyer in California.

Postponement of auction for the Californian foreclosed home can occur for a number of reasons.  The simplest of all is due to a mutual agreement of terms between the foreclosed home owner and the California lender.  Bankruptcy of the owner will also postpone the auction as all debts are frozen.  There is also a beneficiary's request if the lender decides it is not in his/her best interest to take to the foreclosure auction at this time.  Lastly, the trustee's discretion if the trustee decides on postponement.

The last stage of California home foreclose process is the Trustee's Deed- this is when the change of deed takes place and the highest bidder wins the ownership of the foreclosed home.

If you are facing foreclosure in California, you can visit our main page to learn about your options or call 888-766-3693 for immediate assistance.

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