CaliforniaForeclosures

California Foreclosures for Sale

With a population of over 37.2 million, California is America's most populous state.

Making up California’s large population is an ethnic melting pot made up of Pacific Islanders, Latino Americans and Asian Americans- the state's multicultural background is vibrant and highly eclectic. Located in the western region of the United States, California is part of the "sun belt" area, which is made up by the southern half of North America. The name itself is largely owed to the region's often-extreme climate. The growing population of immigrants that arrive at California and its surrounding areas can also be considered a major factor in the state's vast ethnic background.

The state's major cities include Los Angeles, San Francisco, Sacramento, San Diego, Riverside, and Oakland. Burbank and Beverly Hills are also very popular cities. Los Angeles is California’s largest city- it’s population is estimated to be around 3.8 million. The major counties in the state consist of Alameda, Fresno, Madera, Orange, Sacramento, and San Diego counties, along with many more. With nearly all the counties being established in the mid to late 19th century, the state's historical status is a longstanding and fulfilling one.

In regards to current Californian market trends, the rate of California home foreclosures - as of early 2011 - is relatively high. This rate coincides with a slight increase of 1.9 percent towards the median house price during February, a rate equal to that of the same time during the previous year. Statistics indicate an increase in current market trends however, which should prove to transform into more lucrative deals for foreclosure home buyers as times goes on.

Current market conditions in Long Beach estimate the average home price to be around $250,000, with California home foreclosures contributing to roughly 40 percent of all housing inventory in this state. Positive trends in the sector are reporting that the best results are coming from first time buyers, along with competitive interest rates. These results are establishing a flourishing setting for prospective buyers in Long Beach, not to mention in several other surrounding cities in the state.

Currently, Riverside fairs a little better in terms of average house pricing, which is currently at $225,000 - despite a five percent increase from the previous year. Foreclosure offers rank at over 50 percent, an increasingly high figure, of the total housing inventory available to first time buyers and investors.

California foreclosure laws

Almost all foreclosures that take place in California are non-judicial, meaning they occur outside of the court system. Mortgages and Deeds of Trust issued in California contain a "Power of Sale" clause, which enables the lender to pursue a foreclosure without the authority of the court if the homeowner is found to be in default.

The process of non-judicial foreclosure begins when a lender files a Notice of Default with the county records office. The notice identifies the amount owed by the homeowner and specifies that if the debt is not paid in three months, a foreclosure sale of the property will be scheduled. It is required that the homeowner and any other lenders (known as Junior Lien holders) from whom the homeowner might have received mortgage loans are issued copies of the Notice of Default. The homeowner can halt the foreclosure process by paying the amount owed in default at any point up until five business days before the scheduled sale of the property.

California foreclosure law provides that the lender must issue and post a Notice of Sale on the property in question, at least one other public location, and in a local newspaper at least 20 days before the foreclosure sale. In addition, the Notice of Sale must be filed with the county records office at least 14 days before the sale is to take place.

On the date of the foreclosure sale, the property is publicly auctioned off to the highest bidder.  If the highest bid at the auction does not exceed two-thirds of the property's appraisal value, a second sale must be scheduled within 12 months. At the second sale, the property can be auctioned off to the highest bidder regardless of the appraisal value.

he foreclosure sale, known as a "Trustee's Sale" in this case, is run in the style of a public auction, the property being awarded to the highest bidder. Anyone can bid, including the lender and any Junior Lien holders. Official ownership of the property is transferred to the winning bidder upon full payment of the bid to the trustee of the property.

California Foreclosure Process Flow Chart