In the first quarter of 2009 the country had a record amount of foreclosures, with over 800,000 total foreclosures. On the top of the list for the most foreclosures was the state of California. A major reason for the record number of foreclosures in California is the high level of unemployment. California also had the highest level of unemployment in the country for this same period of time. With so many foreclosures and many other homeowners fearing that they may soon be facing foreclosure themselves it is a good idea to be familiar with the foreclosure procedures for California and also what options you have if you are at risk of losing your home. Judicial Foreclosure California practices the judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder. Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one year to redeem the property. Non-Judicial Foreclosure Another method of foreclosure that is possible by law in California is non-judicial process of foreclosure. This is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Power of Sale Foreclosure Guidelines If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows. A notice of sale must be: 1)recorded in the county where the property is located at least fourteen days prior to the sale 2)mailed by certified, return receipt requested, to the borrower at least twenty days before the sale 3)posted on the property itself at least twenty days before the sale 4)Posted in one public place in the county where the property is to be sold. The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction. The borrower 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 trustee may require proof of the bidder's ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale. Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption. How to possibly avoid foreclosure A loan modification can in many cases be the answer to the problem. Like anything else there are benefits and disadvantages to a mortgage modification. We have compiled a list of the advantages and disadvantages for you to consider. ADVANTAGES: A successful Loan Modification will supply you with the following: 1. an interest rate reduction. Under President Obama's current program this rate may be as low as 2 off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude's Mortgage Rescue
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