Summary of Foreclosure Laws in the State of California

Key Facts of Foreclosure Laws in the State of California
- Judicial Foreclosure Available: Yes - but, rarely used by lenders.
-  Non-Judicial Foreclosure Available: Yes - used predominately by lenders.
-  Primary Security Instruments: Deed of Trust, Mortgage
-  Timeline: Typically 120 days. Click HERE for details.
-  Right of Redemption: no

-  Deficiency Judgments Allowed: Yes. But, lender conduct judicial foreclosure in order to obtain a deficiency judgement.

California has law to protect home equity of the borrowers. This law is called California’s Home Equity Protection Act.  The law requires any short sale contract in writting with a Notice of Cancellation. The law gives equity sellers rights to cancel the contrac with certain time frame.

Here is how the California’s law defines the time for rescission:

In addtiona to any other right of rescisssion, the equity sell has right to cancel any contract with an equity purchaseer until midnight of fifth business day following the day on which the equity sellers signs the contract that complies with Claifornia’s Home Equity Protection Act or until 8 a.m. on the day scheduled for the sale of the property pursant to a power of sale conferred in a deed of trust. whichever occurs first.

Information provided here is only for a general view of the state foreclosure law and it is not for legal advice. We highly recommend you to consult legal professional or licensed attorney for advice in any legal issues related to foreclosures.

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