How Foreclosure Works in California

You do not need to necessarily worry about foreclosure if you miss a mortgage payment or two. Though you may be charged a late penalty or some other fee, lenders in California cannot initiate foreclosure proceedings until at least 120 days have passed from the date you first missed a payment. 

If you are dealing with other financial difficulties, however, it may be difficult to catch up. In those circumstances a California foreclosure may be your best option. Fortunately, you will have ample time to proactively prepare for the possibility of foreclosure.

Notice of Default

Once at least 120 days have passed, your lender may choose to file a Notice of Default with the appropriate court. You will receive a separate notice alerting you to this development within ten days of their filing. You will also receive information on how to bring your mortgage current and avoid foreclosure. If possible, you should consider exploring negotiating with your lender. You may be able to secure a loan modification or some other solution.

Judicial vs Non-Judicial Foreclosure

The state of California allows both judicial and nonjudicial foreclosures. Nonjudicial foreclosures only minimally involve the courts and are generally more efficient, so they are far more common. Judicial foreclosures do involve the courts and can present additional complications if your home is sold for less than what you still owe on the mortgage. In these scenarios, you are liable for the “deficiency,” meaning you will still owe your lender the difference even after they have sold your home. In most cases, however, lenders will utilize nonjudicial foreclosures.

Notice of Trustee Sale

You will have three months from the date the Notice of Default was filed to bring the mortgage current. Otherwise, your lender will schedule a public auction and deliver you a Notice of Trustee Sale. Your lender will have to wait an additional twenty days before the sale can take place.

Work With a Los Angeles Foreclosure Lawyer

If you have not already consulted with a qualified legal professional by this point, now is the time to do so. This is your last chance to protect your home and file for bankruptcy. You cannot utilize bankruptcy to save your home once the public auction has taken place.

In most cases, you will have at least 200 days from the date of your first missed payment before the sale of your home can occur. If you have the means to do so, bringing your mortgage current will automatically stop the foreclosure process. If you are struggling financially, however, you may need additional forms of relief. Our West Los Angeles foreclosure attorneys can evaluate your circumstances and advise whether bankruptcy may be the best way forward.