Post Foreclosure

There is a redemption period after foreclosure depending on the type of Foreclosure. There are two types of Foreclosure processes in California. One is known as a Judicial Foreclosure, and one is known as a Non-Judicial Foreclosure. California homeowners have a redemption period of three months to one year if the foreclosure of their house was by a Judicial foreclosure process.
There is a No Redemption Period if the foreclosure of a property was Nonjudicial, Known as a Non-Judicial foreclosure. In a non-judicial foreclosure, there is no redemption period. Most California foreclosures are through a non-judicial process.
Prior to our past foreclosure crisis in 2008, the federal and state laws that regulated mortgage industry and foreclosure process were limited and, in many cases, unjustly favored the lenders that foreclosed. Since the meltdown, regulatory changes have been set in place federally and statewide. Laws now have become stricter and regulate mortgage servicing and foreclosure rules. These laws were put in place to protect the borrowers. Loan Servicers must ensure and notify borrowers with loss mitigation rules or opportunities. They must also provide borrowers with each foreclosure step. Mortgage services must be strict with Federal and State foreclosure laws.
Most California borrowers who apply for a loan to buy a residential property in California sign a Deed of Trust and promissory Note for a mortgage. These documents give homeowners federal and state legal protections. They also give homeowners and borrowers contractual rights and protection.