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Foreclosure Laws: California
This information derived from informations provided by the State of California
The California Foreclosure Process:
Day 0:
The lender (or trustee for the lender) files a Notice of Default with the county, after the property owner (trustor) doesn't make his loan payment. The owner may be behind anywhere from 15 days to 12 months (or more). You deal directly with the motivated owner before they lose their property, equity and credit at the trustee sale auction. Offers which include cash for the seller's equity and back payments due, taking over the existing loans "subject to" have made this the least cash required and most profitable stage of foreclosures.
Day 90:
The lender (or trustee for the lender) files a Notice of Trustee Sale with the county. This notice is given to the borrower and the public, stating the lender is going to sell the property at public auction within the next two to five weeks. This is your last opportunity to contact the property owner before the auction, for a quick purchase or loan.
Day 104+:
At the trustee sale auction you are required to have all cash or cashiers checks for the amount you are bidding. If you have the capital, this is an excellent way to obtain large discounts. However, you will not be able to fully examine the property, or obtain title insurance. Any tax liens, senior loans, or other liens are the responsibility of the buyer. This is a high risk, high return venture.
Beyond Day 104:
If no one bids at least the minimum set by the lender, the property reverts to the lender. The trustee must then file a Trustee's Deed to convey title to the lender. Once this occurs, the property becomes an "R.E.O." (Real Estate Owned) and can be purchased directly from the lender. The lender usually provides a new loan. This stage is conceded to be the easiest avenue for investing.
For more information on this subject, you can read the California State Civil Code, Division, Property:
CALIFORNIA CODES CODE OF CIVIL PROCEDURE SECTION
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Do you need any advise or support to avoid a foreclosure? We developed a loan program designed to stop foreclosure.
It's called: Save-A-Home. We know how to help you.
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