California Foreclosure Process and Laws

 


Quick Facts About the California Foreclosure Process

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 120 days

Right of Redemption: Varies

Deficiency Judgments Allowed: Varies

Lenders can foreclose mortgages in default through a judicial or non-judicial foreclosure process in California.

Judicial Foreclosure
When no power of sale clause is present in a mortgage, then the judicial process is done. This involves filing a lawsuit to get a court order to foreclose. The property is consequently sold to the highest bidder. In this type of foreclosure, the lender can seek a deficiency judgement and sometimes, the borrower has until one year to reclaim the property.

Non-Judicial Foreclosure
When a power of sale clause is present in a mortgage deal, the non-judicial process is done. In this foreclosure process, the lender has the power to sell the property during a default. The lender or a representative, called the trustee, can sell the property to the highest bidder.

Power of Sale Foreclosure Guidelines
If the specifications of the sale, namely the time, date and terms of sale are stated in the power of sale clause, then these must be followed. If not, it is done by:

A notice of sale must be sent to the borrower and posted at the property 20 days before the sale. This notice of sale must also be recorded in the county at least 14 days before the sale. Lastly, another notice must be put up in a public area of the county where the property is located. This notice must contain all the pertinent information about the sale. If the borrower wishes to cure the default, he must accomplish this within five days of receiving the notice.

The sale can only take place from 9am-5pm at the specified locationstated in the notice of sale. A proof that the winning bidder will be able to pay the price of the property may be asked by the lender. Postponement of the sale may also be done during the original time of the auction. Lenders have no right to seek a deficiency judgement while borrowers have no rights to redemption.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Fresno Field Office

Dept. of Housing and Urban Development
Fresno Field Office
855 M Street, Suite 970
Fresno, CA 93721

Phone: (559) 487-5033
Email: CA_Webmanager@hud.gov

Fax: (559) 487-5498

Jurisdiction: Stanislaus, Madera, Merced, Mariposa, Fresno, Kings, Tulare and Kern Counties in California’s Central Valley

Rollie Smith
Field Office Director
email: Rollie.Smith@hud.gov

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Los Angeles Field Office

Dept. of Housing and Urban Development
AT&T Building
611 West Sixth Street,
Suite 800

Los Angeles, CA 90017

Phone: (213) 894-8000
Email: CA_Webmanager@hud.gov

Fax: (213) 894-8096

TTY: (213) 894-8133

Jurisdiction: Primarily Los Angeles, Ventura, Santa Barbara, San Luis Obispo, Mono and Inyo Counties

Ray Brewer
Field Office Director

email: Pennie.Acevedo@hud.gov

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Sacramento Field Office

Dept. of Housing and Urban Development

John E. Moss Federal Building

Suite 4-200

650 Capitol Mall
Sacramento, CA 95814-3702

Phone: (916) 498-5220
Fax: (916) 498-5262

Email: CA_Webmanager@hud.gov

TTY: (916) 498-5959

Jurisdiction: Northern 23 California Counties: Alpine, Amador, Butte, Calaveras, Colusa, El Dorado, Glenn, Lassen, Modoc, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, Yolo, and Yuba Counties

Cynthia L. Abbott
Field Office Director
email: Cynthia.L.Abbott@hud.gov

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

San Diego Field Office

Dept. of Housing and Urban Development
Symphony Towers
750 ‘B’ Street, Suite 1600

San Diego, CA 92101-8131

Phone: (619) 557-5305
Email: CA_Webmanager@hud.gov

Fax: (619)557-6296

Jurisdiction: San Diego and Imperial Counties

Frank Riley
Field Office Director
email: Francis.X.Riley@hud.gov

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

San Francisco Regional Office

Dept. of Housing a nd Urban Development
600 Harrison Street, 3rd Floor
San Francisco, CA 94107-1300

Phone: (415) 489-6400

Email: CA_Webmanager@hud.gov

Fax: (415) 489-6419

Jurisdiction: San Francisco, Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Sonoma, Solano, Santa Cruz, San Benito, Monterey, Del Norte, Humbolt, Mendocino and Lake Counties

Ophelia Basgal

Regional Director
email: jennie.c.remigio@hud.gov

Office Hours: 8:15 a.m. to 4:45 p.m.
Monday through Friday

Santa Ana Field Office

Dept. of Housing and Urban Development
Santa Ana Federal Building
34 Civic Center Plaza
Room 7015
Santa Ana, CA 92701-4003

Phone: (714) 796-5577

Email: CA_Webmanager@hud.gov

Fax: (714) 796-1285
TTY: (714) 796-5517

Jurisdiction: Orange, San Bernardino and Riverside Counties

Ray Brewer
Acting Field Office Director
email: loreta.p.monzon@hud.gov