Foreclosure Defined Foreclosure means that your mortgage lender can legally repossess your house due to nonpayment. They can then sell your house to help repay the debt you owe on it.
Does California have a redemption period after foreclosure?
Judicial foreclosures are rare in California. A judicial foreclosure allows the lender to get a deficiency judgment against the borrower. BUT the homeowner has the “right of redemption,” which allows him or her to buy the home back from the successful bidder at the auction for 1 year after the sale.
How does a foreclosure in California work in California?
The lender is not required to ask permission from the courts to sell a property to recover losses incurred by a delinquent loan, since in California the power of sale clause is controlled by the state’s contract law. If a lender chooses a non-judicial foreclosure, they give up the right to pursue a deficiency judgement against the borrower.
What happens to a property in a tax foreclosure?
Properties with delinquent real estate taxes are subject to tax foreclosure. When a tax foreclosure action is adjudicated, the ownership of the property is transferred from the delinquent taxpayer to a new owner. The new owner is responsible for all future taxes.
When to balance out default in California foreclosure?
According to California foreclosure law, the borrower may still balance out the default up to 5 days before the foreclosure sale is set to take place, thus reinstating the loan.
What to do if your home is foreclosed on and you are an occupant?
If you are an occupant of a foreclosed property where the new owner filed an eviction case, talk to a lawyer or call the Tenant Foreclosure Hotline at 1-888-495-8020 to learn about your rights. Tenants in some California cities may still have a right to stay in their buildings.
