Re: CA Foreclosure process


Posted by Jerry - Ca. on September 27, 2008 at 13:56:14:


In Reply to: CA Foreclosure process
Posted by confused in CA on September 26, 2008 at 12:35:01:

California Foreclosure procedures:

First a Notice of Default (NOD) is recorded by the Trustee. During the following 90 days after the recording of the NOD ... the homeowner can stop the foreclosure by paying all past due payments and and foreclosure fees.

If the Default is not cured and rescinded ... A Notice of Trustee Sale(NTS) is published in the newspaper for 21-days. The property is sold at a Trustee's Auction and if no bidders ... ownership reverts back to lender.

After the Trustee Sale, the new owner (Lender or Investor) can serve the hold-over foreclosed owner a 3-day notice to vacate. If that hold-over owner doesn't move ... the lender or new owner start eviction proceedings, which take 30-90 days to get through court and have a Sherriff show up at your door.

Foreclosure Liability:

If your loan(s) are Purchase-Money loans used exclusively to buy the property ... you are safe! The lender cannot seek any deficiency judgments.

If the lender pursues a Non-Judicial Trustee Sale type of Foreclosure as described above ... your are again safe from deficiency judgments!

If you have Non-Purchase money loans such as Re-fi's or Home Equity Lines of Credit(HELOC)the lender can only pursue a deficiency judgement through Judicial Forclosure ... no Trustee Auction ... it's settled through the courts!

Junior lienors (2nd mtg. or trust deed holders) if wiped-off title by the Senior lienor's foreclosure action ... may sue you in a civil action for breach of the loan's uderlying Note contract!

Hope this helps.

Jerry Carey
www.REConsortium.com


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