What is non-judicial foreclosure?

Non-judicial foreclosure is a legal process used in California to recover mortgage debt from delinquent borrowers. In this process, the lender (or “beneficiary”) of a mortgage forecloses on the property without involving a court. The lender must follow the terms of the deed of trust, which is a legal document signed by the borrower giving the lender the right to foreclose if the borrower fails to make payments. In order to begin the foreclosure process, the lender must record a Notice of Default and Election to Sell with the county recorder. This document outlines the default that has occurred, the amount due, the right of the borrower to reinstate the loan, and the right of the lender to foreclose. The borrower then has 90 days to pay the past due balance, plus any additional costs incurred by the lender. If the borrower doesn’t reinstate the loan and the lender still wishes to sell the property, the lender may continue with the foreclosure process. The lender then posts a Notice of Sale and schedules an auction, usually conducted by a trustee, to sell the property at public auction. This document outlines when, where, and how the auction will be conducted. At the auction, the highest bidder wins the property. The borrower can still reinstate the loan prior to the auction, but any past due amount plus additional costs must be paid in full to do so successfully.

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What is non-judicial foreclosure?

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