If you have tried to purchase a house in California, you have encountered an instrument known as a deed of trust. This deed involves three parties; the borrower, the money lender, and the neutral third person who gets foreclosure rights if ever they arise. This is the basic tool used with regards to CA foreclosures.
In a deed of trust there is also a clause empowering the third party to get the rights to implement the collection of the entirety of the debt. This means that the third party has the authority given by the lender for him to sell your property in the event that you default on your debt payments and face foreclosure.
The foreclosure process begins when the property owner substantially defaults on the mortgage loan and a notice of default is recorded. The borrower is granted a 90-days redemption period to cure the default. The primary method involves a non-judicial foreclosure and does not involve court action. The process does not move forward for a minimum of 60 days. There's a 14-day period in which essential details of the property and the mortgage payment is recorded. The borrower must receive a 20-day notice prior to any foreclosure sale. The defaulter may prevent the sale by paying all arrears up to five days before the foreclosure sale. If the foreclosure sales occur, it must take place any business day between of 9AM and 5PM, at the property location and the trustee will auction the property to the highest bidder, including the lender. The borrower is permitted to postpone the sale for one day.
If what you have agreed upon was a non-judicial foreclosure, the trustee will need to fulfill certain requirements before they can sell the property. Contrary to how it sounds, this is actually a pretty fast and simple process. It is not necessary for the trustee to get a court order before they can ask you to vacate or any order from the court before they can sell the property. This kind of foreclosure happens if there was no power-of-sale clause in the deed of trust.
In California practices, a non-judicial foreclosure usually starts after the lender sends you a notice of default. This is simply a letter stating that you have not been able to pay your mortgage debts. It serves as the formal notice that the lender now eyes foreclosure as a possible way to recover what they have lent you.
A non-judicial foreclosure can happen from one week to a couple of months after you fail to pay the first payment on your mortgage. Once the process has started, you no longer have the right to try and halt the proceedings.
What you need to realize is that once legal action is brought against you, it becomes part of your legal record. It will also have a very big impact on your credit for years. During this time you may not be able to obtain another home loan. Also, other loans and credit lines will be affected.
So, as you can see, the foreclosure process in California is very strict. Your best bet would be to make all your mortgage payments on time each month. Lets face it - no one wants to have their home foreclosed. - 31862
In a deed of trust there is also a clause empowering the third party to get the rights to implement the collection of the entirety of the debt. This means that the third party has the authority given by the lender for him to sell your property in the event that you default on your debt payments and face foreclosure.
The foreclosure process begins when the property owner substantially defaults on the mortgage loan and a notice of default is recorded. The borrower is granted a 90-days redemption period to cure the default. The primary method involves a non-judicial foreclosure and does not involve court action. The process does not move forward for a minimum of 60 days. There's a 14-day period in which essential details of the property and the mortgage payment is recorded. The borrower must receive a 20-day notice prior to any foreclosure sale. The defaulter may prevent the sale by paying all arrears up to five days before the foreclosure sale. If the foreclosure sales occur, it must take place any business day between of 9AM and 5PM, at the property location and the trustee will auction the property to the highest bidder, including the lender. The borrower is permitted to postpone the sale for one day.
If what you have agreed upon was a non-judicial foreclosure, the trustee will need to fulfill certain requirements before they can sell the property. Contrary to how it sounds, this is actually a pretty fast and simple process. It is not necessary for the trustee to get a court order before they can ask you to vacate or any order from the court before they can sell the property. This kind of foreclosure happens if there was no power-of-sale clause in the deed of trust.
In California practices, a non-judicial foreclosure usually starts after the lender sends you a notice of default. This is simply a letter stating that you have not been able to pay your mortgage debts. It serves as the formal notice that the lender now eyes foreclosure as a possible way to recover what they have lent you.
A non-judicial foreclosure can happen from one week to a couple of months after you fail to pay the first payment on your mortgage. Once the process has started, you no longer have the right to try and halt the proceedings.
What you need to realize is that once legal action is brought against you, it becomes part of your legal record. It will also have a very big impact on your credit for years. During this time you may not be able to obtain another home loan. Also, other loans and credit lines will be affected.
So, as you can see, the foreclosure process in California is very strict. Your best bet would be to make all your mortgage payments on time each month. Lets face it - no one wants to have their home foreclosed. - 31862
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