California Foreclosure Law

In California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial foreclosure method or non judicial foreclosure process. Right of redemption of foreclosed properties law and deficiency judgements against borrower law vary. For non judicial foreclosure sales, lenders may not seek a deficiency judgment after the non-judicial foreclosure sale and the borrower has no rights of redemption.

California Foreclosure timeline

California Foreclosure timeline is typically 120 days.

Judicial Foreclosure in California

The CA judicial foreclosure process in California involves filing a lawsuit to obtain a court order to foreclose. The judicial foreclosure process is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Using this type of foreclosure process:

• lenders may seek a deficiency judgment and
• under certain circumstances, the borrower may have up to one (1) year to redeem the foreclosed real estate property.

Non Judicial Foreclosure in California

The CA non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust.

What is a power of sale?

A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default.

In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

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