California Foreclosure Process
Start of foreclosure process. Initial notice recorded after borrower fails to meet the terms of their loan.
CC 2924c.(a)(1)
Sets auction date. Can be recorded 3 months after Notice of Default
CC 2924 c. (b)(1)
Initial auction date can be just 14 days after Notice of Trustees Sale is recorded.
CC 2924 f. (b)(1)
Auctions can postpone for up to one year.
CC 2924 g. (c)(1)
Transfers property to winning bidder. By default this will be the lender if no bid higher than the lender's opening bid is received.
CC 2924 h. (c)
Properties are considered to be in Preforeclosure from the filing of the initial Notice of Default until the property is sold at auction. During this period investors can purchase the home directly from the owner, Realtors can list the home, and Lenders can help them refinance.
Auction properties have had a Notice of Trustee Sale filed setting an auction date, and have not yet been sold or cancelled. Investors can purchase the home at auction; and Realtors® and Lenders can monitor their client's properties, to ensure their listing and loan activities are completed before the auction.
Bank owned properties received no bid at auction, resulting in the bank taking ownership. These properties are commonly referred to by the banks as REO's (Real Estate Owned). Investors can purchase these properties directly from the bank; and Realtors® can solicit the listing, since banks will almost certainly market the property for sale.
| Opportunity | Traditional Financing | Subject-To Financing | Title Insurance | Inspections | Eviction Required | Overall Risk |
| Preforeclosure | Yes | Yes | Yes | Yes | No | Low |
| Auction | No | No | No | No | Maybe | High |
| Bank Owned | Yes | No | Yes | Yes | No | Very Low |
Comments
can the home equaity loan write off y our loan before your first has closed foreclosure
Yes. Wasn't uncommon at all in the 90's for 2nds to be written off without the 1st ever foreclosing.
1.) If an investor purchases an existing NOTE, does that new Note holder inherit [any] liability re: the initial Note?
(eg. If a forensic loan audit uncovers evidence that there may have been RESPA violations or some other 'issue' in the initial acquisition of the original Note, is the new Note holder held liable for any/all potential issues?)
2.a.) Does it make any difference if the Note is purchased at a discounted rate?
(eg. $200,000. Note purchased by an investor for $150,000.)
2.b.) Are there tax implications re: that difference between the $200K Note amount vs. the $150K purchase amount?
my daughter is facing foreclosure. Her mortgage lender was bought up by a large bank. If she has a business checking account at that bank (unrelated to the home) can they attach her checking account to pay for the losses on the mortgage?
If you want the right process for the health insurance we have the standard process .
If the bank bought back the property at auction, how long will it take to list the property again on the MLS? Is there a redemption period of a few months?
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