The foreclosure process in California – Notice of default
To start the California property foreclosure procedure, the lender is needed to make make contact with the house proprietor to identify options to property foreclosure just before a “Notice of Default” may possibly be filed. (CC 2923.5.(a)(1)
After this procedure is completed, the foreclosing lender’s trustee may record a “Notice of Default” with the County Recorder.
A copy of the “Notice of Default” is mailed to the house proprietor who is subject to foreclosure. CC 2924c.(a)(1)
The foreclosure procedure in California – Notice of Trustee Sale
The following action in the California foreclosure procedure is the Notice of Trustee Sale:
*Following 90 days, the foreclosing lender’s trustee performs some ministerial methods which could take up to a week to complete.
*Next the “Notice of Trustee Sale” is recorded with the County Recorder which indicates what the date of the public sale will be.
*A duplicate of the “Notice of Trustee Sale” is served to the house proprietor who is subject to foreclosure. CC 2924 c.(b)(1)
The property foreclosure method in California – The Auction
The next stage in the California property foreclosure procedure is the Public sale.
*The Initial auction date can be as little as 14 days following the Notice of Trustee Sale is recorded. CC 2924 f.(b)(1)
*Throughout this phase, the home is sold in a public place to the highest bidder.
*The starting bid price is set by the trustee as directed by the investor on the loan.
*The cost is usually based on the amount of debt and any associated legal fees.
*Very often, auctions are postponed simply because the loan provider is working with the home owner to avoid the foreclosure auction. Auctions may possibly be postponed for up to one year. CC 2924 g. (c)(1)
The postponement procedure is not an official action in the California foreclosure procedure, but probably it really should be simply because most auctions are postponed several times. Auctions might be postponed for several factors.
The foreclosure procedure in California – The Deed Transfer
The last phase in the California foreclosure method is the transfer of the trustee’s deed: The trustee’s deed transfers property to successful bidder. By default, this will be the lender if no bid greater than the lender’s opening bid is obtained. CC 2924 h. (c)
California Mortgage loan Property foreclosure Laws – Postponement of Trustees Sale
The postponement of the Trustees Sale is not an official foreclosure action under California foreclosure method, but perhaps it should be because most auctions are postponed several times before taking place.
The California mortgage foreclosure laws (Civil Code section 2924g) allow the lender’s trustee to postpone the property foreclosure public sale for up to one year without having to restart the California non-judicial foreclosure procedure.
Reasons for Postponement
Under The California mortgage loan property foreclosure laws; there could be several reasons for the postponement:
1. Loan provider/Borrower Agreement – This is the most typical postponement reason under the California Home loan foreclosure laws. For example, a loan modification or forbearance settlement negotiation will usually outcome in a postponement. Property owners should also be informed that in the situation of forbearance agreements, missed payments could instantly restart the property foreclosure process without having any further notifications being made by the loan provider.
2. Bankruptcy Filing – If a home-owner files for bankruptcy protection, California mortgage loan property foreclosure laws demand that the courts put an automatic stay on all financial debt collection actions — this consists of foreclosure. Although this might seem like a excellent answer, bankruptcy merely delays the foreclosure. In most situations, the loan company will file a request to the court for an order for relief from the stay. The bottom line is that the home is collateral for the financial debt, and the lender has the right to take the collateral if the house owner lacks the capability to pay the debt as agreed.
3. Lender’s Beneficiary’s Request – California mortgage property foreclosure laws enable the lender’s beneficiary to request (decide) to postpone the sale. They may possibly do this for any reason. For example, they may not be ready to take the property or believe the house is about to be sold in a private sale.
4. Trustee’s Discretion – The lender’s trustee might postpone the sale under the California Home loan foreclosure laws. One typical cause is that they are unable to achieve the lender for instructions.
5. Court Order – Even though somewhat uncommon, a court order may be used to postpone the sale, this is especially correct when a lawsuit is filed with regards to some allegation affecting the title or the loan.
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