FAQ - NON-JUDICIAL FORECLOSURE- FORECLOSURE IN CALIFORNIA
NON-JUDICIAL
FORECLOSURE:
QUESTION: What is a “non-judicial foreclosure”?
ANSWER: The creditor does not sue in a Court. It sets the property for sale by an appointee Trustee. No “judgment” is assessed against the debtor for any sale shortfall.
In this foreclosure type, the trustee appointed in the trust deed forecloses the property without a lawsuit and merely by giving notice of Default and, ultimately, an Election to Sell the property on a given date and place for the balance due, plus interest and taxable trustees and attorneys fees as set by statute. There is no deficiency judgment in this type of foreclosure. That is to say, whatever the creditor receives at the trustee’s auction is all that the creditor will get and the balance of the debt, if any, is absolved. The debtor has up until five days before the foreclosure sale to cure the default and stop the process. The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The debtor has no rights of redemption after the sale.