Depending on your state's laws, your lender can use either judicial
or nonjudicial foreclosure, the Nolo legal website states. In a
judicial foreclosure your lender must go to court and prove that he
should be allowed to sell your house. Nonjudicial foreclosures--used in
California, among other states--are faster and less expensive, because
the lender doesn't need a judge's approval. In California nonjudicial
foreclosure only takes about four months from filing a notice of default
through the foreclosure sale.
Under California law, your lender must meet with you about avoiding
foreclosure at least 30 days before starting the nonjudicial process.
When that time has elapsed, she can file a notice of foreclosure with
the county where your property is located; she must then inform you of
the filing. You get a three-month grace period before she can schedule
the sale, and a 20-day period after that before the sale can actually be
The judicial foreclosure process takes much longer and has many
more steps, Nolo states. First the lender files a lawsuit, then he
notifies you of the filing. You have a deadline to respond--30 days in
California--if you want to fight the foreclosure in court. After you
respond, the judge will schedule a hearing in which you and your lender
will state your case. If the judge decides in favor of your lender, the
lender will set the sale date and notify you. It can take a year or more
between filing and selling.
The foreclosure sale isn't inevitable. If you can put together
enough money to pay off your back mortgage debt--including interest and
your lender's legal expenses--you can end the foreclosure process. In
California, in a nonjudicial foreclosure, for instance, you have up
until five days before the sale to wipe out your debt.
No matter what your lender or anyone else tells you, nobody can
make you leave your home until after the foreclosure sale. If the
property is sold, ownership will transfer to a new owner; otherwise
ownership reverts to the lender. In either case, Nolo states, you become
a tenant and the new owner--whether buyer or lender--must use the
procedures specified under state eviction law to get you out. In
California, with judicial foreclosures you have a one-year right of
redemption, during which time you can get your home back by paying the
balance of the loan, plus fees and court costs.
If the foreclosure sale doesn't pay off your mortgage debt, CNN
states, your lender can sue you for the remaining debt by filing for
what's called a deficiency judgment. The rules vary from state to state:
In California, lenders who use a nonjudicial foreclosure can't sue for a
deficiency judgment afterward. California lenders can claim a
deficiency if they use judicial foreclosure, but that process takes so
much longer, few lenders attempt it.
source : http://homeguides.sfgate.com/happens-home-goes-foreclosure-9120.html
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