California Foreclosure Process

The most common type of foreclosure in California is nonjudicial foreclosure.  This is used when there is a power-of-sale clause in the deed of trust that allows the trustee to sell the property to pay off the balance of the loan if the borrower defaults (fails to make payments on the mortgage).When this process is used to foreclose on the homeowner, the lender gives up the right to collect the deficiency from the borrower.

Before the lender can sell your property there are steps they need to take:

  • Lender MUST contact you to assess your financial situation and options to avoid foreclosure;
  • If you and the lender are not able work out a plan to avoid foreclosure, then the lender can record a Notice of Default in the county where you property is located.  You will receive of copy of this within 10 business days after the lender has recorded it.  You have 90 days from the date that Notice of Default is recorded to cure the default – which usually means to pay the balance that is owed.
  • If there is no cure after the 90 days, the lender can then record a Notice of Sale.  The Notice of Sale allows the trustee to sell your home at auction in 21 days.

If you are going through this there are ways to save your home, however, it is important that you act fast.  Call Khach Law Group today to schedule a free consultation to discuss your specific situation and your options.