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California Foreclosure Process |
California foreclosure Process like in other states has many phases, timeline and procedures associated with it. The proceeding whole solely depends upon the presence or absence of deed of trust or mortgage, which are called legal instrument. In these instruments power of sale clause is there that allows the lending institute to do the foreclosure auction and that too without court's intervention. The power of sale clause sometimes also contain date, place and time of auction. So based on these California foreclosure process can either take place by Judicial or Non-judicial method. Judicial foreclosure takes more time than the non judicial one, as it does not require court's order.
Step by Step Foreclosure Process in California
Instigation of CA foreclosure process happens as soon as the borrower defaults in making the payment. Lending institute in order to get back the whole amount sell the property in foreclosure auction or as real estate owned (REO). California foreclosure timeline for non judicial foreclosure starts with the notice of sale.
California Foreclosure Timeline
- Recording of notice of default in recorder's office by the lender. The notice will be recorded in the county where the property to be foreclosed upon is located.
- The notice is also published in the county's office.
- Within 10 days of the recording, the notice along with copies of recorded document (NOD) is sent to the Trustee(s) and those who have requested for Special Notice.
- Then the notice is sent to the borrower and other parties mentioned in the deed via mail and that happens within the first month of the recording.
- Notice of sale is then posted as advertisement on the property as well as on one other public location.
- After three months, the procedure to set a sale date starts. A Notice of Sale is required to be published at least 20 days before the sale date.
California Foreclosure Process 2009
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A new law known as California Foreclosure Prevention Act 2009 has prohibited lenders from giving a notice of sale prior to the end of three months after recording of notice of default. Though this law is applicable for certain loan programs only, it goes a long way to curb the rising phenomenon of foreclosures in California. This 90 day extension to foreclosure process allow more time for lenders and borrowers to work out loan modifications so as to avoid foeclosure.
In California foreclosure process, if the deed of trust is present then during sale there are three parties associated, which are:
The foreclosure auction is carried out by trustee, who is the third party. Any change in the auction of foreclosure, concerning its date, place or time is announced by the trustee. Foreclosure eviction process starts once you get a notice of sale for your home in California. The average time frame within which you are required to pack and move your belongings is close to 10 weeks from the day of receiving the notice.
Whole foreclosure process in California is a nightmare for anyone. So to stop the process of foreclosure it is better to respond immediately than to wait for some miracle. To understand the complete procedure go through the websites that are on foreclosure laws, process, how to stop foreclosures etc.
Along with this you can also consult the foreclosure attorney who can understand your case and gives you the legal advice on the matter. Above all always communicate your problem to your lender as your lending institute as it is the one who can benefit you with loan modification, refinancing options, forbearance and other ways to stop the CA foreclosure process and other procedures. If you are looking for more details of California foreclosure process then also visit the other pages related to foreclosure laws, procedures, listings of Realestatezing.com.
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