Sacramento California Foreclosure Help, Defense, Laws and Process

 


Mortgage help always comes in handy when you want to acquire property. However, there are minor differences in the laws, judicial and non judicial instruments as well as the time limits involved. Most people in California are facing foreclosure because they have not considered consulting their financial institution on the prospects of a loan modification. This can easily save you the embarrassment of having to lose your hard earned assets. Seek government assistance in good time to avoid foreclosure.

Stop Foreclosure in Sacramento, California

In California, foreclosures are mainly administered out of court even though court foreclosures are permitted. For a court foreclosure to take place, the lender has to want a deficiency judgment. This procedure gives the defaulter at least one year to redeem the property after foreclosure has taken place. At this point, it is better to seek government help or seek advice from a reliable advice agency that is well established. Out of court foreclosure procedure starts when the lender goes to court to file a notice of default. The notice should contain the defaulted amount and the date the defaulter is supposed to settle the default. All affected parties are then informed in good time for adequate preparation.

The law allows the borrower to settle the debt and any other extra costs incurred at least five days before the trustee sale. Twenty days before the sale takes place, the notice of sale of the property must be advertised on a public location. The borrower is then notified via post twenty days before the actual sale. It is advisable to have an attorney present when the legal process begins.

Sale is done through a public sale whereby the asset is sold to the highest bidder. The highest bidder is required to pay in cash or its equivalent. After a successful sale, the winning bidder is given ownership of the property. However, you can file for bankruptcy to halt foreclosure.

Sacramento, California Foreclosure Process

In California, the judicial process is rarely used. It only comes into effect when there is a lack of the sale clause in the loan document or when the lender seeks a court order for a deficiency judgment. The lender sues the defaulter to obtain a court order of foreclosure and a sale order. Avoidance of foreclosure is possible if you seek the bank’s assistance to repair credit.

The non judicial foreclosure process is the most common in California. It comes into effect when the power of sale clause gives the lender the right to dispose of the asset should the borrower default. Should the power of sale clause include the time, place and terms of sale, the above procedure must be followed. If not, below is the alternative procedure:

  • Recording of a notice of default is done in the location where the property is located. A copy is posted to the defaulter within ten days. The borrower is given 90 days to set off the debt.
  • Should the defaulter fail to cancel the debt, a notice of sale is recorded. The notice gives the trustee the authority to sell off the property within 21 days. Notice is then posted to the defaulter as well as publishing it in a general circulation newspaper for three consecutive weeks.
  • The auction is held as a public sale at the allocated area in the notice of sale, presided over by the lender’s representative.
  • The successful bidder pays in cash the total amount bided after which a trustee’s deed is issued after the sale. In the case where nobody else bids, the property goes back to the lender. The defaulter has no right to redeem the property.