What is foreclosure?

Foreclosure is a legal process by which a lender or creditor takes back property from a borrower who has defaulted on a loan or mortgage. In California, the foreclosure process typically begins when a borrower fails to make a payment on a loan or mortgage. The lender then sends a Default Notice, giving the borrower 90 days to pay what is due. After 90 days, if no payment is made, the lender can then begin the steps for foreclosure. The foreclosure process in California can take several months, and will often involve a court hearing. During this hearing, the lender presents its case against the borrower and the court issues a judgment. If the court rules in favor of the lender, the lender will proceed with the foreclosure. The process for foreclosure in California can vary depending on the type of loan or mortgage the borrower had. In some cases, the lender may be able to foreclose without a court hearing. In other cases, the court may require the borrower to go through a formal foreclosure auction process. If the auction is successful, the highest bidder will then be granted possession of the property. If the foreclosure sale is unsuccessful, the lender may take the property back and sell it in a public auction. The proceeds of the sale will then be used to pay off the remaining balance of the loan or mortgage. Foreclosure can be a difficult process, but it is sometimes necessary to protect the interests of both the borrower and the lender.

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What is foreclosure?

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