The potential for losing your home to foreclosures is a frightening thought. Unfortunately, a great deal of misinformation is available when it comes to the foreclosure process. While some debt collectors may be competitive in pursuing money owed, your mortgage lender has to follow a very specific set of laws — California Civil Code Sections 2920 during 2967 — regarding the foreclosure of your home. Your lender can’t sell your home at auction prior to completing the foreclosure process.
Payment Demands
Your lender may issue several notices demanding payment on the grounds. These letters do not make a notice of foreclosure. The letter may express the risks of failure to pay including seizing your property and selling it in the auction — but it does not constitute an actual legal notice of foreclosure.
Foreclosure Avoidance
The lender’s first step to begin the foreclosure process is to schedule a Foreclosure Avoidance Assessment. In this meeting, the lending company discusses your options to rectify the default on your deed of trust. The lender may offer alternatives like a mortgage adjustment, short sale, deed-in-lieu or payment arrangements. The lender cannot begin the foreclosure process until 30-days after this meeting.
Notice of Default
Following the 30-day interval, your lender files a Notice of Default with all the county where your home is situated. The Notice of Default is the official notice that the lender is chasing foreclosure on the land. You get a copy by certified mail approximately ten days after filing. You get 90 days to fix the problem and cure the default prior to the lender files a Notice of Sale to put the home up for auction.
Notice of Sale
The Notice of Sale is filed by the lender 90 days after the Notice of Default. You are given a copy by certified mail. The lending company also publishes notice in the paper and places a copy on the land. The sale occurs 21 days after publication. You have up until five days prior to the auction to fix the problem and save your home. The Notice of Sale includes the time, date and location of the auction to your property.
Auction
The lender bids at the auction to the remaining balance plus the penalties. If no one bids, the lender requires control of this property. Other buyers may increase the quantity of the bid to get the property. Regardless, the home is sold and you no longer are the owner of your property. The successful bidder receives the trustee’s deed to the land.
Eviction
The new owner can’t lock you out of this property. You still live in the home as a tenant. The proprietor must go through the legal eviction process as stated in California Civil Codes 1161 through 1179 that requires about 30 days to complete. Following the judge issues the unlawful detainer, you get five days to vacate the land prior to the sheriff issues the lock-out.