There are 2 types of foreclosure in California

    1. Non judicial foreclosure

    A non-judicial foreclosure does not require the filing of a lawsuit and is most typically used by lenders.

    2. Judicial foreclosure

    – May be completed in as little as 111 days.

    The following are the steps in a non-judicial foreclosure

    1. Notice of Default is filed with the County Recorder’s office.

    This typically happens after 3 to 4 months of non-payment of the mortgage, but it can be more or less.

    2. 90 days after the Notice of Default is filed, a Notice of Trustee Sale can be filed.

    A Notice of Trustee Sale must give 21 days of notice before the sale date.

    3. Trustee Sale – Auction

    – This is when the property is actually sold by the lender. It is sometimes known as being sold on the courthouse steps.

    – After the auction, the property is transferred to the highest bidder. If no bid is higher than the beneficiary/lender’s, the property is transferred back to the lender.

    – When this happens, the property is now referred to as an REO (real estate owned)

    – Auction may be postponed up to 365 days by the lender.

    Lenders may not seek a deficiency judgment after doing a non-judicial foreclosure.
    The borrower has no right of redemption after a non-judicial foreclosure.

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