Summary: The State of California leads the nation when it comes to the amount of foreclosures that are taking place in the United States. A typical foreclosure in California takes 4 months and can be judicial or non-judicial, depending on the language in the security instrument. The right of redemption for the borrower and deficiency judgment for the lender depends upon the type of foreclosure pursued. Most mortgages in the State of California are foreclosed upon using the non-judicial foreclosure process.

In the State of California, there are many people either facing or already embroiled in the foreclosure process. Like some other states, most notably Nevada and Florida, the price of homes in California skyrocketed and then crashed, leaving many people owning property that is worth a substantial amount less than what they owe on their mortgage.

The California foreclosure process is mostly non-judicial. However, if there is no Power of Sale contained in the security instrument, such as the deed of trust or mortgage, then the lender must proceed with a judicial foreclosure. This has both pros and cons for the borrower.

In the judicial foreclosure process, the lender must file a suit against the borrower in the county where the property is located and can then obtain an Order of Foreclosure once the lender proves that the borrower has defaulted on their mortgage agreement. The court will then order that the property be sold in public auction. If the lender proceeds with the judicial foreclosure process, they can seek a deficiency judgment against the borrower for the amount of the loan less any amount gained in the auction. This can be a sizeable sum in many cases due to the crash of the housing market that heavily impacted this state.

The non-judicial foreclosure process is generally used when there is a Power of Sale clause contained in the security instrument. In this case, the lender does not have to go through a lawsuit to foreclose upon the property and sell it in public auction, although they do have to follow a set of guidelines. The guidelines for a non-judicial foreclosure sale are usually outlined in the mortgage or deed of trust that secures the property.

The first step the lender takes when invoking the Power of Sale clause is to file a Notice of Sale that states the time, place and date of the sale in the county where the property is located. This must take place at least 2 weeks before the date of the sale. The Notice must also be mailed to the borrower at least 20 days before the sale via certified mail. In addition, the Notice of Sale should be posted in one public place as well as on the property 20 days before the foreclosure sale is to take place. The borrower has until 5 days before the sale to stop foreclosure by making the loan current. If the borrower does not cure the default, the property is auctioned to the highest bidder. When a property is auctioned in a non-judicial foreclosure, the borrower has no right of redemption and the lender cannot pursue a deficiency judgment.

Under the foreclosure laws in the State of California, the lender can only pursue a deficiency judgment against the borrower if the property is foreclosed upon in the judicial process. The borrower has one year to redeem the property in the judicial foreclosure process but no right to redeem if the property goes through the non-judicial process.

If you have property in the State of California and wish to stop foreclosure, you have to act quickly and get a free foreclosure consultation with loss mitigation specialists who can go over your situation and help you determine which option is right for you. Any type of foreclosure in the State of California can be devastating and detrimental to your credit. In many cases, loss mitigation firms can stop foreclosure and give you a fresh start in life, with as little impact on your credit and life as possible.

Loss mitigation companies generally work with the borrower to see what can be done to prevent foreclosure. In some cases, loss mitigation agencies can prevent foreclosure and save your home. In other cases, they can allow you to walk away from a bad debt and start fresh. In order to find out the best option for you when it comes to preventing foreclosure in California, you have to get a free foreclosure evaluation of your situation so that you can take action. You may be able to stop foreclosure by selling your home in the short sale process. This entails loss mitigation companies working with your lender to arrange for a satisfactory buyout of your property that will keep the lender from pursuing a foreclosure and give you a new start.

Loan modification is something that many loss mitigation agencies specialize in and can be a way to prevent foreclosure in California and save your home. There are many options open to a borrower in California who is facing foreclosure, but in many cases, the borrower does not understand that these options are available and takes no action. Many people abandon their property and get a foreclosure or even a deficiency judgment on their record. Others simply wait for an eviction while they look on helplessly. It is important for borrowers in the State of California to understand that they have options when it comes to preventing foreclosure and that, in many cases, loss mitigation consultants can stop foreclosure.

A foreclosure has a very detrimental impact on your credit rating and may prevent you from obtaining credit and even employment in some cases. You do not want to be haunted by a foreclosure on your record for the next 7 years. A deficiency judgment can not be eliminated through a Chapter 7 bankruptcy and can also be devastating. If you are facing foreclosure in the State of California, you should take action and seek foreclosure help as soon as possible by qualified professionals that know the law and can help you stop foreclosure. Go to www.1stforeclosureprevention.com to see what you can to do stop foreclosure.