Foreclosure in California

California is a title theory state where property is in trust until payment in full happens for the underlying loan. The document that secures the trust is a Deed of Trust but is commonly referred to as a mortgage. California is a non-judicial foreclosure state so a lender doesn't have to take you to court to foreclose on your home. They foreclose through the deed of trust at a trustee auction after all the proper notices are given. Deeds of trust have a power of sale clause that allow a trustee to sell the property in order to satisfy the defaulted loan.

California has a one action rule. That means if a property is foreclosed on via power of sale clause then the same lender can't come after you personally for the deficiency.

In California it typically take at least 120 days to get a foreclosure to go through. They have to record a default in the county where the home is. This typically occurs after a home owner is in serious default (typically 4-6 months). Foreclosure cannot then move forward for at least 60 days and then the borrower must receive a 20 day notice before any sale, mailed to the borrower.

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