California Foreclosure Laws
by admin ~ January 5th, 2009.The judicial process of home foreclosure starts with the lender filing a Notice of Default. The lender files a lawsuit to get the local court force foreclose, is used when no power of sale is present in the mortgage or deed of trust. However, the State of California has mandated that mortgage lenders and mortgage service companies make significant efforts to provide a loan modification prior to the pursuit of the foreclosure process.
In most cases, if the loan modifications are unsuccessful and the local court concurs with the mortgage lender’s foreclosure request, your property will be auctioned off to the bidder who makes the best offer. Using this type of foreclosure process, mortgage lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one year to redeem the property.
The borrower has up until five days before the foreclosure sale to cure the default and stop the process. Home lenders can’t seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption. Read the complete foreclosure prevention article > Judicial & Non Judicial Foreclosure in California
Category: Featured Articles | Tags: California foreclosure, foreclosure prevention, loan modifications