What is Foreclosure?

When a homeowner fails to make the payments due on the loan (defaults on the loan) the lender can foreclose, which means that the lender can take ownership of the property from the homeowners and then either hold or sell the home.  

Each state has laws that govern the foreclosure process, including the notices a lender must post publicly, the homeowner’s options for bringing the loan current and avoiding foreclosure, and the timeline and process for selling the property.

California primarily uses nonjudicial foreclosure, also called the “power of sale.” This type of foreclosure tends to be faster than a judicial foreclosure, and it does not go through the courts unless the homeowner sues the lender.