Friday, September 16, 2011

N.O.D and Foreclosure Timeline in California

There are two types of foreclosure allowed in California, Judicial Foreclosure and Non-Judicial Foreclosure.
Judicial Foreclosure is very rare in California and requires the lender to sue the owner in foreclosure and proceed with a trial in a court of law. Appraisals and other items are required, and there is still an auction. The owner has the right of redemption allowing them to buy it back from the successful bidder at auction for 1 year after the sale. The advantage of judicial foreclosure for the lender is that they can receive a deficiency judgment against the borrower for the difference between the amount owed (including penalties, fees and costs), and the amount received at auction.
Non-Judicial Foreclosure is what most people are referring to when they talk about "foreclosure" in California. When using non-judicial foreclosure lenders give up their right to collect a deficiency judgment against the borrower, however, most lenders prefer this process given the expedited time frame and minimal costs. Non-judicial foreclosure sales are typically postponed 1 or more times, and can be postponed for up to 1 year based on certain postponement reasons.
 Non JudicialJudicial
Requires Court TrialNoYes
Expedited Time FrameYes - 111 DaysNo
Right of RedemptionNo - Except HOA liens, which have 90 daysYes - 1 Year
Deficiency JudgmentNoYes - Except purchase money

Overview of the California Foreclosure Process
Key California Foreclosure Laws:

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