When you are purchasing a home in California or many other places, you find that it involves the use of a deed-of-trust. This involves three different participating parties, which are the borrower, lender, and a neutral third party that will receive the right to foreclosure if needed. The process of CA foreclosures is a complicated one but may or may not be a long drawn out process.
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.
When you default on your mortgage loan, the foreclosure process begins. There is a 20-day notice period in which the borrower must get a notice of pending foreclosure. During this process the lender will take over your home in an effort to recover the principal investment. Once your home has been either sold or in some cases repossessed by the lender you must then vacate the home.
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 the absence of a power-of-sale clause in the loan document, judicial foreclosure is permitted in California and involves the court’s final judgment of foreclosure. The property is then sold publicly; a recorded document is issued in the interest of public notice that the property is being foreclosed upon.
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.
Buy a ca foreclosure as your new home today. Purchasing ca foreclosures can be less expensive than a new home.
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