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California Foreclosure Laws |
According to California Foreclosure Laws both judicial as well as non-judicial foreclosures are applicable and this foreclosure law is governed by the California Civil Code, Section 2924. On the very first missed payment of the home loan, the borrower is considered as a defaulter but generally it is after the third missed payment that the process and proceedings for the foreclosure in California begins. Non Judicial foreclosure contains the information regarding auction & that is mentioned in the Deed of Trust, which follows certain patterns of time-line. The whole process of foreclosure generally takes place withing the period of 120 days.
Non-Judicial Foreclosure in California
The deed of trust in case of non-judicial foreclosure contains the clause 'Power to Sale'. The foreclosure proceedings for the non-judicial begins with the recording of the notice of default with the recorder. Then according to the foreclosure laws in California withing 10 business days notice of default is published and mailed to the concerned parties. Then the date for the sale is set after three months of the proceedings.
The further procedure says that notice of sale is to be sent to everyone who is concerned before 25 days of the sale and the same of recorded before 14 days of sale. It is also necessary to post the notice of sale on the property and one of the public location. The on the specific day the foreclosure auction takes place and the property is given to the highest bidder. But in any case of the sale of the foreclosed home does not take place then the property is considered as REO or Real Estate Owned.
Judicial Foreclosure in California
In case of Judicial foreclosure the Trust Deed does not have anything concerning the terms and conditions of auction. In this case getting the court's order is necessary for which a lawsuit is filed for the California Foreclosure Home. Then after the declaration by the court same procedure is followed as done in the non-judicial foreclosure in CA. In the state of California, judicial foreclosures are not that common.
California Foreclosure Procedure
Now generally buying of the foreclosed homes takes place in three ways. The first and the foremost buying is done during the pre-foreclosure phase of the home. Here you can buy the foreclosed home from the homeowners. Secondly, buying of the property is done at the California foreclosure auctions, where the bidding for the same is done. Thirdly foreclosure homes are bought in REO's or Real Estate Owned or Repos (repossessions). These include properties that are not sold in the auction. Buying the REOs is a great option while on other hand buying a foreclosed home at auctions is considered as the riskiest option.
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The foreclosure laws in California further states that the proceeding and the process of foreclosure begins at anytime after the first mortgage payment is missed out. There are many real estate brokers who can guide you on the details of the California foreclosure laws, rules, process and proceedings.
Also according to the laws of foreclosure in CA, there exist the right of redemption in which the owner of the foreclosed property can reclaim the home by paying full amount. By law Deficiency Judgment is permitted only in certain cases but in case of non-judicial foreclosure in public sale and purchase money mortgage it is not allowed.
Realestatezing.com has also given some of the websites giving details of California foreclosure laws, Process followed in auctions and CA foreclosure rules etc
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