Foreclosures in California
A mortgagee may foreclose on a mortgage when the obligation that the mortgage relates to is in default. This typically occurs when the mortgagor fails to make timely loan payments.
Acceleration Clause
Although a mortgagee may bring a foreclosure action whenever a mortgage obligation is in default, the mortgagee is entitled to collect only the amount of the obligation that is currently due, unless the mortgage contains an acceleration clause. This clause provides that the full amount of the mortgage becomes due upon a default.
Notice of Foreclosure
For a mortgagee to foreclose on a mortgage, he/she must give the mortgagor prior notice. In addition, if foreclosure is conducted by a judicially supervised sale, the mortgagee must give notice to the holders of any junior interest in the property, or who are liable on the debt. In California, there must be at least twenty (20) days notice prior to a Trustee sale. This notice is to be published at least once a week for three (3) consecutive weeks.
According to https://www.foreclosure.com,
A notice of default is recorded after a default occurs in the county in which the property is located. This does not necessarily occur after one or more payments are not met but for logistical reasons may occur after a loan is in substantial default — sometimes six months or more past due. This is known as the redemption period. The foreclosure process does not move forward for a minimum of 60 days. A notice of sale containing the name and address of trustee, certain disclosures (including that the property is about to be lost to foreclosure sale), the name of the beneficiary, and other information must be recorded in the county in which the property is located at least 14 days before any foreclosure sale after that time period. This is known as the publication period.
The borrower must receive a twenty (20) day notice before any foreclosure sale, further notice of the foreclosure must: (a) mailed to the defaulting borrower (and other creditors whose liens affect the property) and; (b) be posted at the property being foreclosed upon and in a public place in the county where any sale would occur. The defaulting borrower may prevent the foreclosure sale by paying all arrearages up to five (5) days before the sale. The trustees’ foreclosure sale then occurs at the earliest twenty one (21) days after the first publication.
Foreclosure sales must take place on any business day between the hours of 9AM and 5PM and must occur at the location referenced on the notice of sale. The trustee will auction the property to the highest bidder, including the lender. The borrower is permitted to postpone the sale for one (1) day.
Foreclosure Methods
California is primarily a non-judicial foreclosure state although a judicially supervised sale is permissible. The non-judicial process takes approximately four (4) months to complete.
Dealing with a foreclosure claim can be a difficult and drawn-out process. It is important to retain experienced and professional attorneys in order to maximize the effectiveness of your claim. Please call Aziz Legal by phone (408) 203-4627 or email us at abid@azizlegal.com.
This article is merely informational and is not intended to be used as legal advice. Use of any information from this article is for general information only and does not represent personal legal or tax advice, either express or implied. Readers are encouraged to consult Aziz Legal, or another attorney, for any specific legal matters.
