What happens if the mortgage is not paid?

If the mortgage is not paid in California, it can result in the foreclosure of the property by the lender. Foreclosure is the legal process that allows the lender to force a sale of the home in order to recover the loan balance. In California, a statutory foreclosure process is used to repossess the property. First, the lender sends the borrower a Notice of Default (NOD). This document notifies the borrower that they have fallen behind on the loan payments, and that the foreclosure process has begun. At this point, the borrower has a certain amount of time (usually three months) to pay off the outstanding loan balance, including all fees and interest, or to work out an agreement with the lender. If the borrower does not bring the loan current, the lender will file a Notice of Sale (NOS). This document is a public notice that the property is going to be sold to satisfy the loan. The lender will hold an auction where the property is sold to the highest bidder. If no one bids on the property, the lender can repossess the property. Finally, the lender will issue a Trustee’s Deed. This document confirms that the mortgage has been satisfied and officially transfers ownership of the property back to the lender. In short, when a mortgage is not paid in California, the lender can take action to foreclose on the property and take possession of it for non-payment of the loan.

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What happens if the mortgage is not paid?

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