Is trustee sale same as foreclosure?

A trustee sale usually occurs when the homeowner is in default on their mortgage, resulting in a foreclosure. A trustee sale is typically the second-to-last step in the foreclosure process in a nonjudicial foreclosure state.

How does a trustee sale work in California?

It is used when there is a power-of-sale clause in the deed of trust that secures the mortgage loan by giving the trustee the authority to sell the home to pay off the loan balance at the request of the lender if the borrower defaults (fails to make payments).

What type of foreclosure procedure prevails in California?

Judicial foreclosure is very rare in California. Lenders who do not have power-of-sale clauses in their mortgages must foreclose on borrowers who have defaulted through judicial foreclosure, which requires a hearing. If the lender is successful at the hearing, the court will order the sale of the property at auction.

What happens after a trustee sale?

After the Sale Once the trustee sale is complete, the property deed is recorded in the new owner’s name. The winning bidder can take immediate possession of the property. If the previous owner or rental tenants are present, they must vacate the property and remove all personal belongings.

How long can you not pay your mortgage before foreclosure in California?

Under federal law, the servicer usually can’t officially begin a foreclosure until you’re more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41). This 120-day period provides most homeowners with ample opportunity to submit a loss mitigation application to the servicer.

Do you lose everything in a foreclosure?

When your home is foreclosed, you have the right to remove all your personal property in the home. You’re responsible for taking it with you or dispose of it as you deem right. When you leave, you have every right to take furniture, all the free-standing appliances, and personal property with you.

How long does it take for a bank to foreclose on a house in California?

It takes several months for a lender to foreclose on a California property. If everything goes according to schedule, the process typically takes approximately 120 days — about four months — but the process can take as long as 200 or more days to conclude.

What are the downsides to buying a foreclosed home?

Cons:

• Slow Process. The legal rules for foreclosures are complex. There’s more paperwork involved, and the sale may take longer than normal.
• Sold “As-Is”. The lender won’t make any repairs unless they’re legally required. It also won’t disclose the history or the condition of the house.