Are you currently facing foreclosure and receiving legal paperwork from your lender regarding your mortgage, or have you been recently laid off and expect that you may soon begin to miss your mortgage payments? If so, you probably have questions about how the foreclosure process in California works. The information provided here is what applies to most people – however, foreclosure law is complex and some of the rules will vary depending on your unique situation, which is why we recommended contacting one of our local foreclosure attorneys to find out what solutions may be available to you.
A foreclosure occurs when a homeowner fails to make the agreed upon payments on their home to their mortgage lender. When a homeowner falls behind on payments, the lender can force the sale of the property in order to recoup what is owed to them under the mortgage loan. In California, lenders may foreclose on properties both through the court system and also outside of the court system, via a nonjudicial foreclosure.
What you need to know: before a lender can pursue a foreclosure, they must contact you (and anyone else listed on your mortgage loan) to discuss your financial situation and look into options to avoid foreclosure. A lender cannot start foreclosure proceedings until they have contacted you to have this discussion, called a foreclosure avoidance assessment. If you cannot come to terms with your lender, they can file a Notice of Default in the county where your home is located. The lender must send you a copy of the Notice of Default, and give you 90 days to pay the lender the amount owed. If you cannot pay what is owed, the lender may file a Notice of Sale, which allows the lender to sell your home at auction. Remember that you can authorize an attorney to speak to the lender on your behalf at any time during this complex process, and that your lender must notify you in writing before taking further action against you. In a foreclosure preceding, time is of the essence. Our local, experienced foreclosure attorneys are here to help you.