We are a federally designated Debt Relief Agency under the United States Bankruptcy Laws. We assist people with finding solutions to their debt problems, including, where appropriate, assisting with the filing of petitions for relief under the Bankruptcy Code.
Foreclosure Timing In California
The question most often asked in our office when a client is delinquent on their mortgage is “How long do I have before my home is sold in foreclosure?” This article is intended to provide a basic outline of the timing involved in a non-judicial foreclosure. The specific laws regarding foreclosure in California can be found in the California Civil Code.
Under a recent amendment to California foreclosure laws, the Lender must contact the borrower by telephone or U.S. mail to see if there is some type of “work-out” that can take place to avoid a foreclosure.
If the borrower and lender are unable to work something out, the Lender will file a “Notice of Default” (NOD) in the county where the property is located. These notices are published and so often your realtor, neighbors, friends will know about the default even before you have had a chance to read the notice yourself. The notice basically states that you have 90 days to bring the loan current or else the Lender will proceed with the foreclosure.
After the 90 days have passed, if the loan is still delinquent, the lender will file a “Notice of Sale” which indicates the day and time that the home will be sold in foreclosure (usually to the bank). This sale date must be at least 21 days out from the date the Notice of Sale is issued.
In some cases, on loans recorded between January 1, 2003, and January 1, 2008, an additional 90 days must be giving between the Notice of Sale and actual sale date.
California has a one-action rule which means that if a Lender goes down this non-judicial foreclosure path, they can not pursue you for any deficiency balance. However, sometimes a 2nd mortgage or HELOC will still come after you (typically this happens in the form of a debt buyer 3-4 years after the foreclosure was completed).
If you believe you are facing foreclosure or are being pursued by a 2nd mortgage lender or HELOC servicer after foreclosure has already taken place on your property, bankruptcy may be a great option for you to consider.