The prospect of a can be daunting and painful, it is crucial to be made aware of your state's laws and guidelines to best serve your interests, regardless of whether you wish to remain in your home or not. Following is a list of information for those who live in California; other states can be researched on our website as well.
Quick Reference:
· Judicial Foreclosure available: Yes
· Non-Judicial Foreclosure available: Yes
· Primary Security Instruments: Mortgage, Deed of Trust
· Timeline: Typically 120 days
· Right of Redemption: Varies
• Deficiency Judgments Allowed: Varies by process
In the State of California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. However, an appraisal of the property must be conducted prior to the scheduled date of foreclosure. It is important to note that a judicial foreclosure in the state of California involves the filing of a lawsuit to obtain a court order to foreclose, wherein property is auctioned to the highest bidder.
In the event of a non-judicial foreclosure, a power of sale clause exists within the mortgage or deed of trust in default wherein the borrower has pre-authorized the sale of the property in the event of default.
Most states have specific power of sale foreclosure guidelines, for more on the state of California foreclosure proceedings please visit: http://www.mitigationonlineconsultants.com today. Mitigation Online Consultants are experts in the field of foreclosure prevention and loan modifications.
In any foreclosure under a mortgage or deed of trust in California, the property must sell for not less than two-thirds of the appraised value. If it does not, then it may be offered for sale again within twelve (12) months. The second sale may be to the highest bidder without reference to the previous appraisal.
A note regarding Deficiency Suits: A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure, provided the property was a single one-family or a single two-family dwelling. This is so even if the high bid at foreclosure was less that the balance due on the loan. However, in foreclosures against other types of property, a deficiency suit is allowed, but is limited to the difference between the balance owed and the fair market value of the property, and then only if the suit is brought within ninety (90) days of the power of sale foreclosure.
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