We'll help you keep your life, even in hard times.
Redding Foreclosure: Walk Away?
Can you just walk away? You have questions, we have the answers. Contact us now to learn about all of the available options we have to help homeowners in need; you can get your questions (like "can my lender come after me for a deficiency judgment?") for as little as $300. That is definitely worth some piece of mind.
The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust. Foreclosures begin with the Trustor (borrower) not making the monthly payments to the Beneficiary (Lender), the first missed payment is technical default, but in practical terms, most Beneficiaries do not begin the process until the third payment is missed. If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through Forbearance or other Loss Mitigation measures, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings.
- Day 1 - Record a Notice of Default
- Within 10 business days - Mail and publish Notice of Default
- Within 1 month - Mail the Notice of Default
- After 3 months - Set sale date
- 25 days before sale date - Send notice of sale to I.R.S. (when necessary)
- Within 10 days from 1st publication - Send beneficiary request for property directions
- 14 days before sale date - Record the Notice of Sale
- 7 days before sale date - If court action, 7-day rule may apply
- 5 business days before sale date - Expiration of right to re-instate the loan
- Sale date - Property is sold to highest bidder at public auction
In California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure in Redding, CA
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, 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 property.
Non-Judicial Foreclosure in Redding, CA
The non-judicial process of foreclosure is used when a "power of sale" clause exists in a mortgage or deed of trust. 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. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines in Redding, CA
If the deed of trust or mortgage contains a "power of sale" clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.
The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.
The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale. Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.
Redding foreclosures and California foreclosures in general are still quite common. We have several options to assist worried homeowners who are facing a foreclosure, or thinking about possibly walking away from their mortgage and foreclosing on their home.
For further information or to discuss getting help with bankruptcy, short sales, or foreclosure we invite you to schedule a free 15-minute confidential consultation with Northern California bankruptcy attorney Rupert Corkill by calling us at 530-209-9593, or filling out our contact us form on our website. The 15-minute confidential consultation is free.