Foreclosure Process in California

Unlike other states in America, the entire foreclosure process in California is a complex one. Also, there are judicial and non-judicial foreclosures. As a result, you will need to be highly knowledgeable to understand the entire process.
People often use non-judicial foreclosures because it doesn’t allow any borrower-friendly option in place for the people that are victims of foreclosure.
To make life easier, you should work with the Law Offices of R. Grace Rodriguez. We are an experienced and certified bankruptcy law firm. Let us help you through the foreclosure process in California.
There are three foreclosure processes in California that you need to know about; the pre-foreclosure phase, the foreclosure phase, and the auction phase. The good thing is that these steps are fully backed by the government. Let’s explore more…


Pre-foreclosure Phase

The first phase in the foreclosure process in California is the pre-foreclosure phase. In this phase, you will encounter the power of sale clause which gives the lender the right to put the property in a defaulted loan in the marketplace. In California, the power of sale is only activated when the borrower has missed more than 4 payments. And the law also states that when a property is purchased, it can be funded using a deed of trust. There are several phases you can use to avoid the foreclosure process. One of the most recommended processes is to use the short sale method. In the short sale, the borrower obtains the permission of the lender to sell the property and pay up the balance. After the agreement has been satisfied, the borrower will be clear of all debts.

Foreclosure Phase

The foreclosure phase starts 30 days after the lender has made effort to avoid foreclosure to no avail. If both the lender and borrower cannot reach a mutual agreement on how they can avoid foreclosure, the lender will start the proceedings of the foreclosure process. During this filing process, the lender gets to choose whether they will go for a non-judicial or judicial foreclosure. However, many people prefer the non-foreclosure process. This is because it is cost-effective and faster than the former. During the foreclosure process, the borrower has to advertise the property for at least 3 months. Also, the lender has to approve the offer of a potential buyer.

The Auction Phase

After the foreclosure process has duly taken place, the lender will proceed to create a notice of sale. This notice comes exactly 90 days after the first default was recorded and must contain details about the auction process. However, the borrower still has a good chance of paying up 5 days before the foreclosure takes place. After that, there will be no chance for the borrower.

Wrapping Up

Going through foreclosure in California is a difficult process to go through. And without any doubt, you will need legal support to walk through it with ease. To get the best legal backing, you should work with the Law Office of R.Grace Rodriguez. Let us help you find a long-lasting solution and get you out of the burden of foreclosure.

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