What is a foreclosure action?

A foreclosure action is a legal process a lender (called a creditor) can use to take possession of a property when a borrower (called a debtor) has not been able to make payments on a secured loan. In California, a creditor may foreclose on a property if the debtor defaults on payments due on the loan. The foreclosure action is initiated by the creditor filing a complaint in court and serving the debtor with a summons and complaint. The foreclosure action requires the court to determine whether the debt is valid and the creditor has the right to sell the property to recover the debt. The debtor is then allowed time to respond to the complaint and provide evidence of any payments made or defenses to the foreclosure. The court may then hold a hearing to determine if foreclosure is appropriate. If the court decides that foreclosure is appropriate, the creditor will issue a notice of sale to the debtor, letting them know when and where the property will be sold. The successful bidder at the sale must pay the full amount of the debt owed, plus any costs associated with the sale. If the property does not sell for the full amount of the debt, the debtor is still responsible for the balance.

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