Foreclosure refers to the process in which a house is repossessed from a person who has borrowed money to purchase it. This normally occurs when they have fallen behind on their repayments.
In the US, depending on which state this happens in, the process can be known as either judicial foreclosure or non-judicial foreclosure. The difference between these two types of foreclosures is the involvement of a court and judge in the process.
Non-judicial foreclosures tend to happen more quickly than those that need to go through the court system. In places where foreclosure is non-judicial, such as in California, each individual state sets out its own rules regarding protocols that need to be followed in order for foreclosure to take place.
Let our Saratoga foreclosure lawyer provide an overview of the non-judicial foreclosure process in the state of California.
Non-Judicial Foreclosure in California
California state law provides for both judicial and non-judicial foreclosure. Non-judicial is the most commonly used method, however. That is because it’s generally the fastest and most effective type.
Per state law, several steps must be taken in order for a non-judicial foreclosure to be legal. The process usually begins with the borrower defaults on his or her repayments.
When this happens, the lender of the borrowed money must contact the borrower either by telephone, or in person, to assess their financial situation. The lender must work with the borrower to explore different options to avoid foreclosure taking place.
The lender must provide contact details for the department of housing. They must also make a reasonable attempt to contact the borrower in the case that they do not respond. If the matter remains unresolved 30 days after the lender first made contact, they may officially begin the foreclosure process.
To do this, the lender must send the borrower a Notice of Default by first class mail. This document sets out the amount not repaid, and the amount needed to solve the foreclosure.
The lender needs to ensure they have all of the relevant documentation, which includes evidence of non-payment and fair notice given to the borrower.
Notice of Trustee’s Sale
After this notice has been given, and three months have passed, the trustee can record their Notice of Trustee’s Sale. This sets out the intention to sell the foreclosed property.
It is still possible for the borrower to cure the default by paying the delinquent amount and any foreclosure costs incurred. They can do this up until five business days before the scheduled sale date.
When this does not occur, the sale will take place by auction on the appointed date. The winner of the auction is then transferred the deed to the house via a Trustee’s Deed Upon Sale.
Help With Non-Judicial Foreclosure from a Sarasota Foreclosure Specialist
Are you currently in a situation where you’re dealing with non-judicial foreclosure in the Sarasota area, and are in need of assistance? If so, the Estavillo Law Group can help.
As one of California’s Premier foreclosure law firms, we’ve got the expertise and knowledge to assist you with whatever you may need. Give us a call today to see what we can do for you.