What are the laws governing foreclosure?

In California, foreclosure is a legal process by which a homeowner’s right to their property is terminated by a lender. Foreclosures are initiated when the homeowner fails to make their mortgage payments. The law governing foreclosures in California is found in the California Civil Code and the Homeowner’s Bill of Rights. Under the California Civil Code, the lender must provide a notice of default to the homeowner before they can begin the foreclosure process. This notice alerts the homeowner to their default on the loan and informs them of their right to cure the default by making full payment on their loan by a specific date. If the homeowner does not cure the default, the lender can then go to the court and ask for the court to order the sale of the property. The Homeowner’s Bill of Rights provides additional protections for homeowners in foreclosure. This law requires lenders to have a single point of contact for the homeowner and requires the lender to provide a written explanation of all fees and charges associated with the foreclosure. Additionally, this law also requires that the lender provide the homeowner with written notice of any changes in the foreclosure process, including postponements and cancellations of foreclosure sales. Finally, the California Homeowner’s Bill of Rights also outlines the process of how a lender can pursue a deficiency judgment against the homeowner if the sale of the property does not satisfy the homeowner’s total mortgage debt. All of these laws are in place to ensure that homeowners are not taken advantage of during the foreclosure process.

Related FAQs

How do I obtain a deed of trust?
What are the laws governing tenant screening and eviction?
What is the homestead exemption?
What is a purchase agreement?
What is an estoppel certificate?
What are the duties of a real estate broker?
What are the duties of a real estate lawyer?
What is a mortgage servicer?
What are the laws regarding zoning and planning?
What is the difference between a real estate attorney and a real estate agent?

What are the laws governing foreclosure?

Related FAQs

Related Blog Posts