Foreclosure Process in California
There are two types of foreclosure in California. The mortgage documents you signed when your home purchase closed should include a power of sale section that explains the type of foreclosure your lender will use. Regardless of the foreclosure type, the process is generally the same. If you are concerned about foreclosure, you should review your mortgage documents in order to know what will happen during the foreclosure process.
Other People Are Reading
-
Judicial Proceeding
-
If your mortgage documents do not include a power of sale clause, your foreclosure case will be handled in the court system. This means that your lender must go to court and file proceedings against you. Under judicial foreclosure, if your home sells at auction for less than you owe, your mortgage company can sue you for the difference.
Non-judicial Proceeding
-
In California, the most common type of foreclosure case is non-judicial foreclosure, which is included in the power of sale section of your documents. Under non-judicial foreclosure, your mortgage company does not have to go to court in order to take your home. If you have stopped paying your mortgage for the time period specified in your mortgage documents, your mortgage company can simply begin foreclosure proceedings. Remember that by signing your mortgage documents you agreed to non-judicial foreclosure.
-
Notice of Sale
-
The power of sale clause in your mortgage documents should explain where a foreclosure sale of your property would take place. If there is not a power of sale clause or the clause does not explain the sale procedure, your mortgage company has to file a notice of sale with the county clerk. Your lender must file this notice 14 days before the sale date. In addition, your mortgage company must send you the notice of sale and leave a copy at your home at least 20 days before the date the sale is scheduled. Finally, your lender is required to display the notice wherever the sale is going to occur, which is usually the courthouse in the county where your property is located.
Foreclosure Sale
-
In order to sell your home to recover its losses, the lender must offer it in an auction. If the foreclosure process has been non-judicial, your lender cannot attempt to sue you if your house sells for less money than you owe. California law requires that foreclosure auctions occur between 9 a.m. and 5 p.m. on a business day, which excludes weekends and holidays.
Right to Redeem
-
The right to redeem means that within a certain time period before the foreclosure sale, your lender must allow you to repay everything you owe and stop the foreclosure process. If the process has been judicial, that is, in court, the redemption time period can extend for up to one year. For non-judicial proceedings, the law gives you only up to five days before the sale to redeem. After the foreclosure sale, you no longer have the right to redemption.
-
