Does a Foreclosure Need to Be Recorded?

Does a Foreclosure Need to Be Recorded?

Throughout a foreclosure, then you may worry that the bank can just come in, accept the home, and kick you out. Actually, the bank must follow very specific steps governed by state law — California Civil Code 2920 through 2944.7 — in order to sell your house at auction. Failure to abide by state law ends in the foreclosure not being valid. Both major observes — the Notice of Default and the Notice of Sale — needs to be recorded with the county clerk in which the house is situated.

Types of Foreclosure

California recognizes two sorts of foreclosure: judicial and non-judicial. Non-judicial is the principal foreclosure process because it’s quick and easy. All your lender must do is file paperwork with the county in order to auction your property. Your lender can’t pursue a deficiency judgment with a non-judicial foreclosure. Judicial foreclosures require going to court before a judge and are really rare in California. Your lender must file a lawsuit with the court clerk and have you served.

FAA Meeting

Before the lender can declare foreclosure, a Foreclosure Avoidance Assessment meeting must happen between the homeowner and lender. At this meeting, the lender provides the capacity to end the default, such as payment plans or directions on loan alterations. Your lender must wait 30 days subsequent to this meeting to record the official foreclosure notice with the county. Failure to set this meeting gives you grounds to contest the foreclosure proceedings.

Official Notice

The lender files a Notice of Default (NOD) with the county clerk to begin the official foreclosure proceedings. The NOD qualifies as the official beginning of foreclosure proceedings and must be listed with the county to be valid. The lender also must send you a copy of the notice by certified mail within 10 days of filing to comply with state law. Once listed, the foreclosure gets accessible public record. You might be contacted by companies trying to make the most of your situation. Do not be duped by any suggestions such as signing over the title to prevent foreclosure or selling the property for much less than owed with no lender permission.

Secondly Notice

You get 90 days to respond to the NOD and pay your past due mortgage payments. If you blow off the NOD, the lender records a Notice of Sale using the county. The Notice of Sale supplies the date, time and location of the foreclosure auction. You get a copy by email and in your own premises. The lender also publishes the notice from the newspaper and in the courthouse. You have 21 days prior to the foreclosure auction. You get till five days before the auction to cover the balance on the mortgage to save your property.

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