CALIFORNIA FORECLOSURE LAW
Judicial, Non-Judicial
Here's a brief breakdown of foreclosure facts specific to California foreclosure law.
- Judicial Foreclosures - YES
- Non-Judicial Foreclosures - YES
- Primary Security Instruments - Deed of Trust, Mortgage
- Deficiency Judgements Allowed? - Depends on method used
- Right of Redemption - Depends on method used
- How long does it take? - About 4 months
- Sale Publication Period - 21 days
- Sale/NTS - Trustee
OVERVIEW
With CA foreclosure law, both judicial and non-judicial methods of foreclosure are used. Judicial methods are only used if a borrower asks for a deficiency judgment and are very rare. If this method of foreclosure is used, a borrower will have up to one year to redeem the property after it is sold. This would be the example where a borrower would have a 'Right of Redemption' period.
NON-JUDICIAL FORECLOSURES
Non-judicial foreclosures are much more common in California foreclosure law. In a non-judicial foreclosure, the lender will file a notice of default with the county recorder. The notice of default is then sent out to the borrower via mail. That letter will simply contain an amount that is in default and a date that it is required for the borrower to pay it off. If there is no intent to pay by the borrower, the lender must wait a minimum of three months after the notice of default is issued before scheduling a trustee's sale.
PUBLICATION PERIOD
As with foreclosures in many other states, there is a publication period that lasts 21 days. A notice of sale will be published publicly for the entire duration of the 21 days. This step is required before a lender can conduct of trustee's sale of the property. In the publication, the location, date, and time of the sale will be included, along with a way to get in contact with the trustee. In addition to the publication, it is also required that the lender file a notice of sale with the county recorder. After the 21 days the property is sold at a public auction and the ownership transfers to the buyer.
REDEMPTION RIGHTS
If the JUDICIAL FORECLOSURE process was used, you may have up to ONE year to pay what you owe and redeem your home.
If the NONJUDICIAL FORECLOSURE process was used, the state gives you up to FIVE days before the auction to pay what you owe and redeem your home.
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