Laws Governing California Foreclosure Homes

California foreclosure homes may pitch a higher price due to the huge demand for them. But buyers can still afford to purchase foreclosures here and eventually move in. One can find stellar homes in cities like Santa Barbara, Los Angeles, San Diego, and Marin County. A better way of searching for homes is through a foreclosures listings web service.

When buying California foreclosure homes for sale, one needs to educate themselves on the rules and regulations governing the state’s foreclosures. Judicial foreclosures are uncommon across the state as foreclosures are usually processed by the parties involved and outside of the courthouse. The entire process of non-judicial foreclosure takes roughly four months.

Phases of Foreclosure

The only time a judicial foreclosure may occur is if the mortgage provider or the lender calls for a deficiency judgment. The effect of this is that the borrower is given the chance to redeem the home following the foreclosure sale. Borrowers are advised to seek foreclosure assistance under this process.

But in most all foreclosure cases the process starts when the lending company files a default notice with the county records office. The notice indicates the amount of the default as well as the period provided by the lender on when the borrower should settle the amount.

After the notice is sent out, the lender has three months of waiting period before they can schedule the trustee’s sale. At any point during this waiting period, the borrower can settle the default and update his/her payments, including all the fines and penalties associated with the late payment. This is one way of preventing the foreclosure from taking place.

Around two weeks or so before the public sale, a notice is put up on the home and posted in one public location where a high number of people can see it. The notice should also be published in a local publication once for three consecutive weeks. It is also mailed to the buyer as soon in the same time the notice is published.

The trustee’s sale is actually a public auction where the buyer with the highest bid wins the property. When the sale is completed, trustees turn California foreclosure homes over to their new owners.