California Foreclosure Law Summarized
In California, Judicial as well as Non-judicial foreclosure are conducted, but judicial foreclosure are rare.
What is the processing period for foreclosure in California?
Processing period is typically 120 days.
What is sale publication period in California for foreclosure?
Sale publication period is 21 days.
Is there any right of redemption in California for foreclosure?
Yes, Redemption period is of 1 year only for judicial foreclosure.
Are deficiency judgments permitted in California?
Yes, but only in certain circumstances and it varies by situation. A deficiency judgment may not be obtained when a property in foreclosure is sold through a non-judicial public sale or if the foreclosure relates to a purchase money mortgage. Different rules apply to guarantors of such loans.
Which law provision governs foreclosure in California?
It is available under California Civil Code, Section 2924.
What happens during Judicial Foreclosure in California?
It involves filing a law suite to obtain a court order. This is done when no power of sale is present in mortgage/deed. Once foreclosure is declared, property is auctioned off to highest bidder. Lender can have deficiency judgment and borrower may get period of up to one year, to redeem the property.
What happens during Non-judicial Foreclosure in California?
Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under “Guidelines for power of sale foreclosure”.
Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed.
Otherwise Non-judicial foreclosure is followed as follows:
A notice of sale must be recorded 14 days prior to sale in county office in which property is located. Copy of said notice must be mailed (certified mail) to borrower 20 days prior to sale (with return receipt requested). Also the notice should be posted in one public place in county where property is located. The notice should mention date, time and place of sale, address of sale property, the trustee’s name, address and phone number and a statement which says that property will be sold at public auction. The borrower can stop the sale and make payment, maximum 5 days before the sale. The said sale should be held on week days between 9 a.m. to 5 p.m. The trustee can ask bidders to prove their ability of making payment with some kind proof.
Lender can not have deficiency judgment after Non-judicial foreclosure and the borrower does not obtain any right of redemption.
This is legal information; it should not be treated as legal advice.
Article Author: Thomas Erwin. For get more information: http://entrusthome.com/12-stop-foreclosure-california.php
Article Source: http://www.articledashboard.com/Article/California-Foreclosure-Law-Summarized/317599
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