What is a Foreclosure

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We hear this term all the time, but…. what is a foreclosure?  Non-judicial foreclosures are by far the most common variety of foreclosure in California. Through a non-judicial foreclosure, a lender can seize a borrower’s property without going through the California court system to do so.

A non-judicial foreclosure in California begins when a borrower defaults on his mortgage loan. The mortgage company will then issue a Notice of Default to the borrower granting him a certain amount of time to pay his mortgage arrears or face foreclosure proceedings. If the homeowner does not pay the amount due, the mortgage lender sets a sale date for the property and sells it at auction.  For a more in depth look at the timelines involved in a foreclosure  read Foreclosure Timelines

After a non-judicial foreclosure, a first mortgage lender has no legal grounds to sue a borrower for his mortgage deficiency. California anti-deficiency laws specifically state that by seeking a non-judicial foreclosure, lenders waive the right to sue for any deficiency owed on the property. Non-judicial foreclosures in California do not carry a right of redemption for the borrower.  Find out out about the real and important differences between Release of Lien and Release of Lien AND Liability.