Foreclosure Laws In California

The prospect of a foreclosure can be daunting and painful, it

is crucial to be made aware of your states laws and guidelines to

best serve your interests, regardless of whether you wish to remain

in your home or not. Following is a list of information on

California foreclosure laws; other states can be researched on our

website as well.
Quick Reference:
Judicial Foreclosure available: Yes
Non-Judicial Foreclosure available: Yes
Primary Security Instruments: Mortgage, Deed of Trust
Timeline: Typically 120 days
Right of Redemption: Varies
Deficiency Judgments Allowed: Varies by process

In the State of California, lenders may foreclose on deeds of trusts

or mortgages in default using either a judicial or non-judicial

foreclosure process. However, an appraisal of the property must be

conducted prior to the scheduled date of foreclosure. It is

important to note that a judicial foreclosure in the state of

California involves the filing of a lawsuit to obtain a court order

to foreclose, wherein property is auctioned to the highest bidder.
In the event of a non judicial foreclosure, a power of sale clause

exists within the mortgage or deed of trust in default wherein the

borrower has pre-authorized the sale of the property in the event of

default.
Most states have specific power of sale foreclosure guidelines, for

more on the state of California foreclosure proceedings please

visit: www.mitigationonlineconsultants.com today. Mitigation Online

Consultants are experts in the field of foreclosure prevention and

mortgage loan modification.
In any foreclosure under a mortgage or deed of trust in California,

the property must sell for not less than two-thirds of the appraised

value. If it does not, then it may be offered for sale again within

twelve (12) months. The second sale may be to the highest bidder

without reference to the previous appraisal.
A note regarding Deficiency Suits: A lender may not bring a

deficiency suit against a person who lost a property that is 2.5

acres or less at a foreclosure, provided the property was a single

one-family or a single two-family dwelling. This is so even if the

high bid at foreclosure was less that the balance due on the loan.

However, in foreclosures against other types of property, a

deficiency suit is allowed, but is limited to the difference between

the balance owed and the fair market value of the property, and then

only if the suit is brought within ninety (90) days of the power of

sale foreclosure.