When a property owner falls behind or is unable to make his/her mortgage payments on a property, the lender can choose to move forward with a foreclosure. In simple terms, this is the legal process that lenders follow when they want to reclaim a property or attempt to recoup their losses.
The foreclosure process can be lengthy and complicated. To help homeowners and other property owners navigate these stressful situations, we’re offering a quick and simplified overview of how the foreclosure process works in California. Don’t forget that for more in-depth discussions and tailored legal advice, you can always reach out to the experienced California real estate attorneys at DiJulio Law Group.
A Notice of Default (NOD) is Filed
Once an owner has defaulted on his/her loan, the lender can proceed to file a Notice of Default (NOD), formally placing the property under foreclosure. At this point, the owner can resolve the foreclosure by arranging a repayment plan with the lender or refinancing the property. Likewise, another party can proceed with the purchase of a property via a regular sale or a short sale.
The Property is Auctioned
90 days after the NOD has been filed, the lender can move to schedule an auction by filing a Notice of Trustee Sale. The notice must be published and advertised for at least three weeks before the date of the auction. The original owner can still resolve the foreclosure during this time, and once the auction goes live, anyone may enter a bid for the property.
Any Property that is Unsold Reverts to the Bank
Finally, if no one bids on the auctioned property, it becomes property of the bank once more. Banks will then typically list these properties with a realtor, although in some instances buyers still have the option to buy directly from the bank.
Want to Learn More About Real Estate and Real Property Law in CA?
We at DiJulio Law Group hope that this post helped you gain a better understanding of the foreclosure process in CA, and want to remind you that we offer free initial consultations. If you would like to schedule an appointment with one of our knowledgeable real estate attorneys in CA, simply give us a call at (818) 502-1700. We look forward to speaking with you about your legal needs involving residential and commercial real estate in CA.