Types of foreclosure
- Judicial Foreclosure – In this type of foreclosure, the mortgagee can sue you in the court of law if you fail to keep your dues. Both you and the lender will have to decide the matter in front of the judge. If you lose the case, then the judge will issue a statement regarding the amount outstanding and the foreclosure process. This is a long and wearisome process and is rarely used.
- Non-judicial Foreclosure – This is the most common method you will find being used in California. Here there is no question of going to a court or a judge. The lender can take hold of your property without having to go through any judicial process. This method is usually fast and also costs less.
Non-judicial foreclosure
The con of non-judicial foreclosure is that there is no one to cross check the documents and see whether or not they are in proper order. But you can challenge this and file a lawsuit in the court to see if the documents are accurate and the process is proper or not. Moreover the system of dual tracking is illegal in California, which provides you much more protection from being cast out through unfair means.
Another thing which you are permitted to in California is a single point of contact and fair loan modification review. If you do not obtain those, then you are free to file a court case against the creditor for a fair review. Until it happens, according to the law you are not liable to foreclose.
The process is simple. If you are behind on payments, the lender will send an advance notice to you to work on a loan adjustment or any other suitable method. After this the owner will file for a Notice of Default and Election to Sell.
This means that you have some time to pay the loans left or find a new house within 90 days. This notice will be sent via mail or even taped to your front door. After the allotted time has passed, the owner will file for the Notice of Sale. Here the date of the sale of the property will be mentioned and you will be required to empty and to vacate the premises.
