In California the foreclosure process allows for both Judicial and Non Judicial foreclosures to take place. A judicial foreclosure only takes place if the lender desires to take the steps of applying for a deficiency judgment against the home owner. A deficiency judgment is taken when the sale of the property still leaves a shortfall in the amount that the lender needs to recover to dissolve the debt. Sacrament foreclosures for do not include rights of redemption, which allows the owner to redeem the property if he can raise the money to pay the debt in full.
Most Sacramento foreclosures for sale are handled outside the confines of the courthouse. This is a much faster and less expensive process than that of judicial foreclosures. The process is commenced when the lender issues a notice of default to the home owner because he/she has been unable to meet the obligations of his/her mortgage repayments. A delinquency notice will also be filed with the county recorder and the trustee or representative of the lender is able to schedule a date for sale three months after the note of default has been filed. The note of default allows the borrower to pay the default and costs by a certain date; this is generally five business days prior to the trustee’s sale.
Twenty days before the Trustee’s sale, a notice of sale has to be posted in one local public area, on the property in default and for three weeks in a locally read newspaper. The notice of sale is also mailed to the defaulter and anyone else who requests the notice, at least twenty days before the sale. The Notice of sale must include the address of the Sacramento foreclosures for sale, the location, date and time of the sale as well as the contact information for the trustee. It also has to be lodged with the county recorder at least fourteen days before the scheduled sale of the property.
The trustee’s sale takes place as a public auction where the property is sold to the highest bidder. Depending on the trustee’s requirements, he might want the highest bidder to pay the price for the property in full on the day of the sale in cash, or a cashier’s check. Anyone at the sale is allowed to bid for the property; this includes the lender or his representative and junior lien holders as well as individuals.
At the sale an announcement may be made that the sale will be postponed and this happens on a regular basis, particularly if the bids on the property are not suitable. In Sacramento, if the trustee’s sale is postponed more than three times, the trustees have to issue a new notice of sale and the process continues again.
Once the sale has taken place and there is a winning bidder the trustees will transfer ownership of the property to the new owner.
