Overview
of the California Foreclosure Process
California allows for
judicial and non-judicial
process, although judicial foreclosures in California are not at
all common. Non-judicial foreclosures follow a standard schedule.
In almost all cases,
foreclosures are handled out of court. The process begins when a
lender files a notice of default with the county recorder identifying
the default amount and the date the borrower must pay off the default.
The notice is mailed to the borrower and other affected parties.
Up to five business days
before the trustee sale, the borrower may pay off the default plus
any applicable costs of foreclosure and stop foreclosure. Three
months after the notice of default is filed, the lender can schedule
a trustees sale of the property.
Notice Of Trustee's Sale
- Auction
At least 20 days before the trustees sale, the notice of sale
must be posted on the property and in one local public location.
The notice is also published once a week for three weeks in a local
newspaper, starting at least 20 days before the sale date. The notice
is mailed to the borrower at least 20 days before the sale and to
anyone who requests the notice. The notice must contain the date,
time, and location of the sale, the property address, and the trustees
contact information. In addition, the notice of sale must be recorded
with the county recorder at least 14 days before the sale.
The trustees sale
is a public auction and the property is sold to the winning bidder.
The trustee may require bidders to pay the full bid amount in cash
or cashiers check. Anyone may bid at the sale, including the
lender and any junior lien holders. A trustees sale may be
postponed by announcement at the sale. If a sale is postponed more
than three times, a new notice of sale must be issued.
After the sale is complete,
the trustee transfers ownership to the winning bidder. The borrower
does not have the right to redeem the property after the sale.
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