- View California Non-judicial Foreclosure Flow Chart
- View California Non-Judicial Foreclosure Timeline
California law permits a beneficiary (lender) to exercise the Power of Sell under a deed of trust when a Trustor (borrower) defaults on a loan secured by real properties. Simply put, a beneficiary may sell the trustor’s real property (collateral) at a public auction to satisfy an indebtedness without court actions. Hence, the term non-judicial foreclosure.
LFS acts as the designated Trustee to carry out the non-judicial foreclosure on behalf of the beneficiary in compliance with a myriad of statutory requirements.
A non-judicial foreclosure in California involves three major steps:
- Notice of Default: The NOD sets a time limit of no less than 90 days from the NOD recording date for a borrower to cure delinquency by either reinstating or paying off the loan.
- Notice of Trustee’s Sale: The NOS sets the place, date and time to sell the borrower’s collateral at a public auction to satisfy the debit if loan default is not cured before then.
- Trustee’s Sale: The borrower’s collateral is sold at a public auction to the highest bidder for cash. If no one bids at the sale, the foreclosing beneficiary acquires title to the property.