FAQ - GENERALLY- FORECLOSURE IN CALIFORNIA
GENERALLY:
QUESTION: What happens if I go into foreclosure on my mortgage or trust deed?
ANSWER: You can lose your property in a forced sale and in some cases still owe the creditor money.
California permits both judicial (a court lawsuit for foreclosure) and non-judicial (sale by trust deed trustee without a court suit) foreclosure. Sale by a trustee is only permitted in sales based upon the trust deed type of finance. For pure mortgages, the sale by trustee is not available and the creditor must foreclosure by suit. In some cases (though these owner-finance instruments are not commonly seen in recent years due to the availability of bank finance, but may be seen more due to recent recession-generated bank finance scarcity) a sale by nominee (without a lawsuit) can be done under a contract for deed or land sale contract.