What is the foreclosure process for mortgages with private lenders?

In California, mortgage agreements with private lenders are subject to the same foreclosure process as mortgages with any other lender. The foreclosure process begins when the borrower defaults on payments, causing the lender to declare the mortgage in default. The lender then has the right to pursue legal action to collect payment. The lender may choose to pursue legal action or to begin foreclosure proceedings. If the lender decides to pursue foreclosure, they will typically serve the borrower with a Notice of Default. This notice must include the amount due, the date that payment must be received, and an explanation of the borrower’s right to cure the default. Once the borrower has received the Notice of Default, they have a period of time to try to cure the default and pay the outstanding balance. If the borrower is unable to do this, the lender will then file a Notice of Trustee’s Sale. This notice must include the amount of the default, the date of the sale, and a description of the property subject to foreclosure. Once the sale has been completed, a Certificate of Sale will be issued, showing the details of the sale. Finally, the lender has the right to take possession of the property and issue a Notice of Possession. At this point, the foreclosure process has been completed. The lender now owns the property and the borrower is no longer obligated to make payments on the loan.

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What is the foreclosure process for mortgages with private lenders?

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