Here is a general outline of the foreclosure process in California:
1. Notice of Default (NOD):
- The foreclosure process typically begins when the borrower fails to make mortgage payments.
- The lender must issue a Notice of Default (NOD), which is recorded in the county where the property is located.
- The NOD includes information about the default amount and provides the borrower with a 90-day period to cure the default by paying the overdue amount.
2. Notice of Trustee Sale:
- If the borrower does not cure the default within the 90-day period, the lender can issue a Notice of Trustee Sale.
- The Notice of Trustee Sale must be recorded at least 20 days before the scheduled sale date and published in a newspaper of general circulation in the county for three consecutive weeks.
3. Trustee Sale:
- The property is auctioned at a public auction, typically conducted by a trustee.
- The highest bidder at the auction becomes the new owner of the property. If no bidder purchases the property it reverts back to the lender.
- The winning bidder must pay the full bid amount in cash or cashier’s check immediately after the auction.
4. Post-Sale Period:
- After the sale, the new owner or former lender is entitled to possession of the property.
- The borrower has no right of redemption after the sale in California.
- It’s crucial to note that foreclosure laws are complex, and the details can vary. If you’re facing foreclosure or need detailed information, please use the feel free to schedule a free, no obligation consultation with our office. Your consultation will be with a licensed attorney.