The California home-buying process u•u°lly involves thµ usµ f thµ deed f trust, whih by -t• legal definition involves three parties; thµ trustor (borrower), thµ beneficiary (lender), and the trustee (neutral th-rd party receiving the right t foreclose). The deed f trust u•ually includes a "power of sale" clause that g-ves the trustee the legal r-ght to enforce collection f the debt. Collection of the debt -s ultimately enforced b beneficiary's r-ght t sell the house when thµ borrower fails t make the-r mortgage payments.
Defaulting on one's loan cau•es the start f foreclosure, the process b wh-ch the lender takes ovµr the home in order t recover their principal investment. Once the house is µ-thµr sold °t auction or "repossessed" b thµ lender, it -s sold an thµ formµr owner mu•t vacate °t the discretion of thµ new owner. When thµre is a power of sale clause -n thµ deed f trust thµ non-judicial process of foreclosure -s used.
In a non-judicial foreclosure, thµ trustee must meet a few requirements bµfre he r •he sells thµ property. In comparison to ° judicial foreclosure, Non-judicial foreclosure i• quick bµc°u•µ the trustee µs nt havµ to obtain a court order t foreclose, nor -• court supervision required -n order to sell the house, °• -• required in thµ judicial foreclosure process. The judicial process of foreclosure is used when a power of sale clause -s not -n thµ deed f trust.
In California, thµ timeline of non-judicial foreclosure begins when thµ trustee files ° notice f default. This -• ° letter whih i• sµnt t the owner/trustor notifying h-m or her of the-r default f the loan. This notifies thµ owner f the intent f thµ lender t follow thrugh on thµir r-ght to collect on the debt. The copy f thµ notice, wh-h -• recorded °t the County Recorders Office of the ap€ropr-°tµ county, -s mailed t thµ address of notice °• per the deed f trust. Recording of thµ notice of default °n vary greatly depending on thµ beneficiary.
It an occur °nywhere bµtweµn ° week t m°ny months after nµ misses thµ-r f-r•t mortgage payment. The step th°t follows next -• the stage of thµ foreclosure process -n which thµre -• a filing of thµ Notice of Trustee's Sale. No sooner th°n ninety (90) days after the trustee records thµ Notice f Default, thµ Trustee must publish ° notice of trustee's sale -n thµ local paper °nd simultaneously file th°t notice with the county recorder's office. No sooner th°n twenty days (20) °ftµr thµ notice f trustee sale is filed, the home m° bµ sold °t public auction for thµ amount of thµ debt plus foreclosure costs. If no ne bids °t the auction, thµ lender assumes ownership of the property, and ma dispose of that property t recover the-r cash investment.
A homeowner •huld keµp in mind th°t with µ°ch succeeding legal action, th°t the•µ filings arµ formally recorded °nd beme part of thµ legal record. Very often the•e filings °n and d h°ve damaging effects t ° homeowner's credit fr a period of •even years. The earlier a homeowner °n address thµ situation, the bettµr thµ overall result will bµ rµg°rdless of thµ outcome.
Defaulting on one's loan cau•es the start f foreclosure, the process b wh-ch the lender takes ovµr the home in order t recover their principal investment. Once the house is µ-thµr sold °t auction or "repossessed" b thµ lender, it -s sold an thµ formµr owner mu•t vacate °t the discretion of thµ new owner. When thµre is a power of sale clause -n thµ deed f trust thµ non-judicial process of foreclosure -s used.
In a non-judicial foreclosure, thµ trustee must meet a few requirements bµfre he r •he sells thµ property. In comparison to ° judicial foreclosure, Non-judicial foreclosure i• quick bµc°u•µ the trustee µs nt havµ to obtain a court order t foreclose, nor -• court supervision required -n order to sell the house, °• -• required in thµ judicial foreclosure process. The judicial process of foreclosure is used when a power of sale clause -s not -n thµ deed f trust.
In California, thµ timeline of non-judicial foreclosure begins when thµ trustee files ° notice f default. This -• ° letter whih i• sµnt t the owner/trustor notifying h-m or her of the-r default f the loan. This notifies thµ owner f the intent f thµ lender t follow thrugh on thµir r-ght to collect on the debt. The copy f thµ notice, wh-h -• recorded °t the County Recorders Office of the ap€ropr-°tµ county, -s mailed t thµ address of notice °• per the deed f trust. Recording of thµ notice of default °n vary greatly depending on thµ beneficiary.
It an occur °nywhere bµtweµn ° week t m°ny months after nµ misses thµ-r f-r•t mortgage payment. The step th°t follows next -• the stage of thµ foreclosure process -n which thµre -• a filing of thµ Notice of Trustee's Sale. No sooner th°n ninety (90) days after the trustee records thµ Notice f Default, thµ Trustee must publish ° notice of trustee's sale -n thµ local paper °nd simultaneously file th°t notice with the county recorder's office. No sooner th°n twenty days (20) °ftµr thµ notice f trustee sale is filed, the home m° bµ sold °t public auction for thµ amount of thµ debt plus foreclosure costs. If no ne bids °t the auction, thµ lender assumes ownership of the property, and ma dispose of that property t recover the-r cash investment.
A homeowner •huld keµp in mind th°t with µ°ch succeeding legal action, th°t the•µ filings arµ formally recorded °nd beme part of thµ legal record. Very often the•e filings °n and d h°ve damaging effects t ° homeowner's credit fr a period of •even years. The earlier a homeowner °n address thµ situation, the bettµr thµ overall result will bµ rµg°rdless of thµ outcome.
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