California Foreclosure FAQs

1. How long does the lender have to wait to record a notice of default?
The lender is able to record the Notice of Default once the first payment is not made.

2. How long after the Notice of Sale is recorded can the property be sold at an auction?
There is a minimum of 14 days before the property goes to sale.

3. Which is more profitable: foreclosure, short sale, or REO?
The most profitable property can be any of the three types depending on the encumbrances, property comparables, resale value, and physical condition of the property.

4. If the property bought at a foreclosure sale has IRS liens what will happen?
If the IRS lien is recorded prior to lien going to the sale they attach. If the IRS lien is recorded after the lien the IRS has a 120 day Right of First Redemption to claim the property back from you and your money will be refunded with no interest. If you pay for any repairs to the property within the 120 days, the money will not be refunded.

5. What happens if no one bids on the property that is being auctioned off?
The property will go back to the lender as an REO property.

6. What happens if there is improper Trustee Sale notification?
The sale will be postponed until further notice.

7. Do they fix the properties up at all before the sale?
All the properties are sold as-is for cash or cash equivalent (i.e. cashier’s check).

8. What is the term of a deficiency judgment?
10 years.

9. When does the lender decide to request a trustee sale rather than a judicial foreclosure?
If there is a lawsuit to force a judicial foreclosure or bankruptcy.

10. If I am a junior lienholder, what are my options if I am wiped out because of a first lien’s foreclosure?
Deficiency judgment as long as it is not part of the purchase money.

To learn further if foreclosure is acceptable for you, consult with Cesi Pagano and Associates directly.

Options to Avoid Foreclosure

California Foreclosure Timeline