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Foreclosure Process |
Foreclosure is a
procedure whereby Trustor's property pledged as
security for a debt is sold to pay the debt by a Trustee on behalf
of Beneficiary.
Trustor is the
borrower (owner) who deeds his property to a trustee to be held
as security until he has performed his obligation to a beneficiary under terms of a deed of
trust.
Trustee is
neutral third party.
Beneficiary is the
lender who holds Note and Trust Deed.
Note is a
signed written instrument acknowledging a debt and
promising payment.
Trust
Deed is a
deed given by borrower to beneficiary to be held pending
fulfillment of repayment of a loan.
During a foreclosure
beneficiary may opt to use a judicial procedure or non-judicial
procedure to foreclose on a property.
- A non-judicial
foreclosure (Trustee's
Sale) does not involve court action and generally takes
around four months. The trustor does not have the right to
redeem the property after the sale. This foreclosure method is
the most often used in California and other States.
- A judicial
foreclosure (Court
Foreclosure) involves the court system and may take over a
year. The trustor has the right of redemption after the
foreclosure sale.
If you need
assistance because your are
facing foreclosure or want to learn more about the foreclosure
process, please call 626-688-0114.
Other topics:
1.
What is
non-judicial foreclosure or Trustee's sale
2.
What is judicial foreclosure or Court foreclosure? |
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