California Foreclosure

Learn about the step-by-step process of foreclosure in California:

1. Lender to contact borrower to assess financial situation called a “foreclosure avoidance assessment”(FAA). Advise that you can request another meeting within 14days.

2. if no workout plan, lender records a Notice of Default =NOD in the county at least 30 days after FAA.-this marks beginning of formal foreclosure.

3. lender sends borrower a copy of NOD by certified mail within 10 business days of recording it.

4. Borrower has 90days to cure default.

5. Notice of SALE is recorded (at least 90days after NOD) which states that the trustee will sell your home at auction in at least 21 days.

The Notice of Sale must:

• Be sent to you by certified mail.

• Be published weekly in a newspaper of general circulation in the county where your home is located for 3 consecutive weeks before the sale date.

• Be posted on your property, as well as in a public place, usually at your local courthouse.

• Have the date, time, and location of the foreclosure sale; the property address; the trustee’s name, address, and phone number; and a statement that the property will be sold at a public auction.

reinstatement of the loan -borrower has until 5 days before the foreclosure sale to cure the default and stop the process.

During the 21-day period after the Notice of Sale is recorded, any person or institution (like a bank) with an interest in your home has the right to redeem the home up until the nonjudicial foreclosure sale/auction. This means that they must pay the entire loan in full.

After the foreclosure

Whoever buys your home at auction must serve borrower with a 3-day written notice to “quit” (move out) and after go through the formal eviction process in court in order to get possession of the home.

If the foreclosure is judicial, you may generally redeem the home within:

• three months after the foreclosure sale, if the proceeds from the sale satisfy the indebtedness or

• one year, if the sale resulted in a deficiency. (Cal. Civ. Code Proc. § 729.030).

Contact me for Help to Avoid Foreclosure