What is foreclosure by judicial sale?

Foreclosure by judicial sale is a process in California where a residential property can be taken away from its previous owners when they have failed to pay their mortgage. The lender takes the matters to court and the property is auctioned off to cover the unpaid amount. The proceeding is initiated when the lender files a lawsuit and serves a foreclosure complaint to the borrower. The complaint contains all the details of the mortgage agreement and the amount owed by the borrower. The court will then issue a summons for the borrower to respond to the suit. If the borrower does not respond, the court will move forward with the foreclosure process. The court will appoint a trustee to handle the sale of the property. This trustee will be responsible for notifying the buyer of the auction, and also setting the terms of the sale. The highest bidder at the auction will be awarded the title to the property. The lender will be repaid their money out of the proceeds of the sale. Once the sale has been completed, the new owner will have to arrange to pay any remaining debt the previous owner might have with the lender. The new owner of the property will then be able to take possession of the home and can start the process of transferring the title. Foreclosure by judicial sale is an important part of the residential real estate law in California and can offer relief to both lenders and borrowers.

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What is foreclosure by judicial sale?

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