Foreclosure FAQ

Q. What is Foreclosure?

A. Foreclosure is a legal process that forces the sale of a how to cover a debt.

If a lending contract allows, a lender can foreclose without going to court.

In California, lenders can foreclose either:

  • Without going to court (non-judicial)
  • By going to court (judicial)

Whether the lender does one or the other depends on if there’s a power of sale clause in the mortgage (or deed of trust). A power of sale clause is a part of the contract that says if the person who takes out the loan stops making payments the lender can sell the property without going to court.

Most mortgages have a power of sale clause, so lenders can foreclose without going to court (non-judicial). These are the most common type of foreclosures in California.

Q. What are the types of Foreclosure?

A. There are other differences between Judicial & Non-Judicial foreclosures:

Judicial foreclosures usually take longer than non-judicial foreclosures and are more costly. There are a few other key differences:

1. In a judicial foreclosure, the borrower may still owe money after the sale of the home
In a non-judicial foreclosure, if the property that was sold was where someone lived most of the time (their primary residence), then the lender can only collect the money from the sale of the home to cover what they’re owed. If the money from the sale doesn’t cover what they’re owed, the lender can’t go to court to get an order to collect the rest of what they’re owed (called a deficiency judgment). There are additional situations where money cannot be collected after a non-judicial foreclosure. In a judicial foreclosure, the lender can get a deficiency judgment to collect any money they’re owed after the sale. 

2. In a judicial foreclosure, the borrower has some time to buy back their home after it sold
In a judicial foreclosure, after the judge orders the sale of a home, it’s usually auctioned off to the highest bidder. The homeowner has some time after the sale to buy the home back from the successful bidder (called the right of redemption). The amount of time depends on whether the sale satisfied the debt. If the sale satisfied the debt, the homeowner has 3 months. If it didn’t, the homeowner has 1 year.

Q. What are the foreclosure timelines?

A. Foreclosure Timeline:

California Foreclosure Process: Day 1, Missed Payment

Day 120 Notice of Default

Day 180 Notice of Trustee Sale

California Foreclosure Process: Day 200 Auction

Total Time for California Foreclosure 200 Days maybe

Q. What are the phases of foreclosures?

A. Six Phases of a Foreclosure:

  1. Payment Default
  2. Notice of Default
  3. Notice of Trustee’s Sale
  4. Trustee’s Sale
  5. Real Estate Owned
  6. Eviction