California Foreclosure ~ Foreclosure Process

Real Estate Broker/Owner with KD Realty - 408.972.1822 CA BRE#01366594

California Foreclosure

  • California Foreclosure Law
  • Civil Code 2924

Foreclosure Process California

Generally speaking, a lender would prefer to receive payments than receive a home due to foreclosure. Lenders will often accommodate home owners who are having difficulty making payments. The best course of action is to call the lender before missing payments. Lenders may restructure the loan or make alternative payment arrangements.

If a homeowner misses payments and does not contact the lender to make alternative arrangements or restructure the loan, the lender may begin the foreclosure process. The lender files a Notice of Default with the County Recorder's Office. A copy of the notice is mailed to the property owner.

If a default is caused by a balloon payment not being made when due, then the lender can require payment in full on the entire outstanding loan as the only remedy to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.

Public Sale: A Notice of Sale must be published in a local newspaper and posted in a public place (typically the courthouse) for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current.

If the default is cured by the owner the deed of trust is reinstated and regularly monthly payments resume. It may still be possible for the property owner to work out a postponement on the sale with the lender.

If a postponement is not reached, then the property goes "on the block." When properties are sold "on the block" at a trustee's sale, buyers must pay the amount of their bid in cash, cashier's check, or other instrument acceptable to the trustee.

Caveat Emptor - Buyer Beware: There is a high probability that foreclosed properties may carry the burden of overdue taxes, liens and clouds on title. Be sure to investigate possible outstanding liens and encumbrances prior to submitting a bid at a pubic sale. It is possible that title insurance may not be available following a foreclosure sale or exceptions may be included in a title insurance policy of a foreclosed property.

Call today for more information about buying an REO property! 1-800-972-1822.

San Jose Real Estate

Kathleen Daniels, Broker Realtor and Foreclosure/REO Expert

Copyright © 2008, All Rights Reserved by Kathleen Daniels *California Foreclosure Law ~ Foreclosure Process*


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The Villages Realty
The Villages Realty - San Jose, CA
"Our Performance Will Move You!"

Kathleen, always enjoy your posts.  You really are an informative Realtor for San Jose, California, and the surrounding towns.  

Oct 27, 2016 02:00 PM #1
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Kathleen, you write great posts fror people who want to know about the real estate market in San Jose, California.  People should use you as their Realtor.   

Oct 27, 2016 02:17 PM #2
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Hi Kathleen, you always write some good, concise, informative posts.  It is a joy to read.

Feb 28, 2017 06:09 AM #3
Eagle Ridge Realty
Eagle Ridge Realty - Gilroy, CA
"Our Performance Will Move You!"

Looks like a good localized post.  Good luck with selling this year.

May 29, 2017 07:51 AM #4
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Kathleen Daniels

San Jose Homes for Sale - Probate Broker
An Independent San Jose Real Estate Brokerage
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