What are the steps for foreclosure on commercial real estate?

Foreclosure is the legal process of a lender repossessing a commercial real estate property due to the default on a loan. In California, foreclosure by advertisement is the most common way to proceed. The first step is for the lender to file a complaint with the court. This will include the amount of the loan, the loan documents, and the property involved. The court will then issue a summons to the borrower along with a copy of the complaint. The borrower then typically has about 20 days to respond to the summons with a "statement of defense." If the borrower does not respond, the lender can request that the court enter a default judgment against the borrower. If this is granted, the lender can proceed with the foreclosure. The next step is for the lender to publish a notice of sale in a local newspaper. This must be done for four weeks. The notice of sale must also be posted at the property, as well as near the county courthouse. The last step is for the lender to hold the foreclosure sale. This is an auction where bidders can bid on the property. The highest bidder will become the new owner of the commercial real estate. The proceeds from the sale will then go to the lender to pay off the loan.

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What are the steps for foreclosure on commercial real estate?

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