Foreclosure in Bakersfield – How Does the System Work?
By Sam Traffanstedt – TS Dreams, LLC
Foreclosure in Bakersfield, Ca works pretty much the same as the rest of the state. If you are reading this article, you or someone you know may be in a bad spot with your mortgage. For whatever reason, you are having problems paying that debt and it has been going on for some time now. We understand completely and just want you to know that you are not alone. There are many people who are facing the same issues. We are here to help, but first, let’s talk about the process you are now in.
Behind on Payments – Your mortgage holder can tell when you don’t make your payments. They will contact you and try to work out a fix for your situation. They can start the process earlier, but normally wait until you miss more than one payment.
Notice of Default – This is the start of the formal foreclosure process. You will receive this notice. The timeline for sale is normally 120 days from this point.
Judicial vs Non-Judicial – If the loan papers include a “power of sale” clause; the mortgage holder can just sell the property. If the clause states where and when, they will follow that. If not they will record the notice at least 14 days before the sale, mail the notice by certified, return receipt, 20 days before the sale, post the notice on the property 20 days before the sale, and post it to a local paper in the county.
Otherwise they must file a lawsuit to obtain a court order to foreclose. If the court declares a foreclosure, your home will be sold to the highest bidder.
Notice of Trustee Sale – This is the notice the bank sets a date for a sale to liquidate your home, as mentioned above.
Auction – This sale can happen in 20 days or may be postponed for up to 1 year. That timeline is up to the bank. You may have until 5 days before the sale to cure the default and stop the process. The lender may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.
The sale will be on a business, day 9-5, at the location listed on the notice of sale. Anyone may bid at the sale. The property may be sold to a 3rd party or the bank may bid on the property and it would become a bank owned property.
Now that you know how it will unfold, it is a great time to find out how you can avoid the worst case scenario. We are local Real Estate Investors in Bakersfield and we can help. We have seen many properties in the same situation. There are several ways to get out of this situation with your finances and credit intact.