Notice Requirements for Foreclosure in California
In California, one of the states hit hardest by the housing market crash, foreclosure rules generally favor the homeowner.
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Function
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Foreclosure is the process wherein the lender on a piece of property takes it back due to nonpayment on the loan by the purchaser. Foreclosure rules differ in each state.
Type
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The type of foreclosure most commonly used in California is nonjudicial. This means that in California, unlike in other states, the borrower will not have to go to court.
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Period of Redemption
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When the loan is in default, the lender must file a notice of default with the county clerk. This begins the redemption period, which lasts for a minimum of 90 days. During this time the borrower can, by paying all monies owed, redeem the property.
Publication Period
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When the period of redemption ends, the lender must file a notice of sale with the county clerk. The notice contains the name and address of the trustee and the name of the beneficiary and other information. This begins the publication period which lasts a minimum of 14 days.
Notice to Borrower
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Although the notice of sale can be posted 14 days in advance of the sale, the borrower, by law, is entitled to a 20-day notice before the foreclosure sale. This notification must be mailed to the borrower, be posted at the property and also where the sale will be held. The owner can pay all amounts in arrears up to five days prior to the sale.
The Foreclosure Sale
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At least 21 days after publication, the trustee's foreclosure sale can take place. At this point, the borrower can postpone the sale for one day. If the sale occurs after that, it must take place on a business day during normal business hours.
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