California House Foreclosure Sale

California is called the Golden State, this may be why so many people are wanting to be a part of the beautiful scenery, the weather and because of that are wanting to buy property in the area. There are around a 1,000 properties in the California house forclosure sale. Unbelievably there are a reported 68,000 properties that are preforeclosed in the state of California, this is where the house is just about to go into the California house forclosure sale.

As always if your prepared to invest in a property in California, it is important to be able to understand the process of foreclosure, if you want to avoid having to put your property in a California house forclosure sale, do your research.

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The main way in which property enters the California house forclosure sale is as in the majority of states is by non judicial foreclosure. This is as it suggests, it does not involve any court action at all. When the mortgage is given by the lender a deed of trust is signed upon approval and acceptance. This should involve a power of sale clause. This enables someone who acts as a trustee to enter the property into the California house forclosure sale, this is what happens when the owner of the house defaults on any payments. California has something which is known as the one action rule. Should a property need to enter the California house forclosure sale, and if this happens via a non court method then the one action rule means that a deficiency judgement is not therefore allowed. The one action rule means that the mortgage lender can only file and chase one legal action during a payment default. Therefore if the house is in the California house forclosure sale and then sells for less than the original mortgage loan then the mortgage company can not show a loss.

When mortgage companies use the courts to include the property in the California house forclosure sale, they can then gain what is commonly known as a deficiency judgement in very rare cases. Of course this takes much more time and can be an extremely time consuming action, it can take a long time to get the property into the California house forclosure sale. So in that case it is hardly ever used, as time costs money, it is more beneficial to the mortgage company to not go through the courts to get the house in the California house forclosure sale.

After six months of missed payments a notice of default is issued in the county where the said property resides. This is commonly called the redemption period. Then it takes 60 or more days to be moved on to the next stage. There is a publication period after this which is where certain information is recorded in the particular county that the house resides in. This must happen before the house can be sold in the California house forclosure sale.

The owner of the house that has defaulted on payments within the terms and conditions of the mortgage must be given a 20 day notice before the property can be entered into the California house forclosure sale. Any information containing details of any such foreclosure must be sent via post to the owner of the said property. Then be posted at the particular house stating details of said foreclosure and as well be posted in a public place somewhere in the county. If the owner of the house can come up with full payment of all the defaulting payments can then avert the house being sold in the California house forclosure sale. This must happen 5 days before the house entering the California house forclosure sale.