CALIFORNIA FORECLOSURE

The San Francisco Chronicle, in its April 17, 2007 edition, stated that foreclosures had increased 81.5% over the preceding quarter. If you are a homeowner in California and are facing the possibility of a foreclosure, now is the time to gather information to assist you in making the correct choices. By utilizing the vast resources at ApartmentStores Moving and Relocation, you can determine the correct steps to take with a California foreclosure.

California foreclosures can be completed in as little as 120 days. Do to this fact, California homeowners need to act as soon as they realize there may be a problem and foreclosure may become a reality. By obtaining knowledge about the various types of California foreclosures, the homeowner will be better prepared to make decisions. Below are just a few of the facts concerning foreclosure in California.

Judicial Foreclosure – Involves the lender filing a lawsuit in order to obtain a court order allowing the foreclosure to proceed. The court will then issue an order of foreclosure and the lender, following legal guidelines, has the right to sell the property at auction to the highest bidder. If the sale of the home does not satisfy the outstanding balance on the mortgage, the lender may, under certain circumstances, seek a deficiency payment from the borrower. In certain situations, the borrower may have up to 1 year to redeem the property.

Non-Judicial Foreclosure – If a power of sale clause exists in a mortgage or deed of trust, then the lender can seek a non-judicial foreclosure. When a borrower has pre-authorized the sale of property to pay off the balance on a loan in the event of their default, the lender can utilize the “power of sale" clause. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. These “power of sale” foreclosures must follow the legal guidelines of the state of California. It must also include a 14 day advance notice of sale, recorded in the county in which the property is located, a notice of sale mailed by certified mail, receipt requested, 20 days prior to the sale date, and a posting of sale on the property itself at least 20 days before the sale. And finally, posting of notice of sale in at least one public place in the county in which property is located.

Notice of sale must contain at least the following information: time and location of the sale, property address, trustee’s name, address and telephone number, and include a statement that the listed property will be sold at public auction.

California homeowners should seek assistance at the first hint of problems in making their mortgage payments in a timely fashion. By preparing for the possible foreclosure it may be possible to save the home and their credit rating. California foreclosures happen quicker than in many states, therefore the homeowner should seek assistance immediately. By using the resources of ApartmentStores Moving and Relocation the homeowner will have the knowledge available to make decisions.