California Foreclosure Laws

California is a title theory state so, in essence, it should be easy to turn a foreclosure into action. However, despite following a non-judicial foreclosure, California foreclosure laws do allow borrowers ample time to redeem their properties for a pre-set period of time. In any case, since California foreclosed homes do not require court action, a power of sale can still make the foreclosure process faster.

As stated in the California foreclosure laws, lenders and their trustees can file the notice of default several months after the borrower failed to pay on time. Since California is a consumer friendly state, a notice is not normally filed after a few defaulted payments. After 60 days, the trustee must record or publish the information 14 days before the sale. Twenty days before the sale, the borrower must receive the notice. The notice should also be posted at the place where the sale would occur and at the foreclosed property. The borrower can cancel the foreclosure by paying up five days before the sale. The power of sale must be indicated at the deed of trust or the security agreement.

The borrower is given by the California foreclosure laws one full year to redeem the property by paying the remaining loan plus additional costs due to the defaulted payments. The borrower can also avail of a 90 day redemption period after the filing of the notice of sale in order to cure the defaults.

Generally, the California foreclosure laws can allow one to fully foreclosure a property 120 days, barring and contentions. The auction is facilitated by the trustee and the borrower can post the sale by a day, barring other legal actions. The property is given to the highest bidder. The lender should also join the auction is if intends to get the property too.