California Foreclosure Listings Key Terms

Learn about some terms commonly found in California foreclosure listings

By Jason Wood

When it comes to understanding the process of foreclosures, it's helpful to understand the terms you'll be dealing with when reading a California foreclosure listing. Knowing where a property is in terms of the foreclosure process and how it will be sold will help you make an informed decision on whether or not to purchase the property.

So before you start browsing foreclosure listings for your next property, take the time to understand the terms you'll come across. Here are some of those terms along with some links to help you with the process.

Notice of default

A notice of default in the state of California refers to a notice from the lender to the borrower informing them that they have not made the necessary payments on their mortgage. The notice is given after a period of substantial default. When dealing with California foreclosure listings, the date of the notice of default will be listed, as this starts the "pre-foreclosure" process.
Try: Visit the website for Foreclosure.com for further information on a notice of default and how it is written and delivered within the state of California.

California 90 day extension

The 90 day extension refers to a law placed in the California Foreclosure Prevention Act which states that a lender must wait an additional 90 days after the notice of default is filed to foreclose on a property. When dealing with California foreclosure listings, the "pre-foreclosure" process will then be extended to a period of no less than six months. This will be highlighted in the foreclosure listing of a property.
Try: Visit the website for California Housing Forecast for more information on the terms, rules and regulations regarding the 90 day extension law.

Notice of trustee sale

A notice of trustee sale refers to a document which is filed by the lender, which sets the date of auction no less than six months from the notice of default. In terms of California foreclosure listings, the details regarding when the notice of trustee sale and the auction date will be is provided in the listing.
Try: Visit the website for Foreclosure Radar for more information on the notice of trustee sale and its function within the foreclosure process.

California judicial foreclosure

Judicial foreclosure refers to a process whereby the lender files suit against the defaulted borrower asking the court to grant permission for the lender to foreclose on the property. After the judicial foreclosure is granted, the property is then auctioned off. In terms of California foreclosure listings, they will detail if the property has undergone or is currently undergoing a judicial foreclosure and subsequently when the property will be auctioned off.
Try: Visit the website for Stop Foreclosure for more information on how the judicial foreclosure process works within the state of California.

California right of redemption, right of redemption

A right of redemption refers to a process whereby the defaulted borrower may buy back or "redeem" the property after the lender has auctioned it to a new party (termed the successor). While the right of redemption laws are intricate, this occurs because the lender usually goes after the buyer for a deficiency judgment for the difference between the price of the mortgage and the price of the auction. In this way, the debt, in terms of the lender has been cured. In terms of foreclosure listings in California, they will list the type of foreclosure, and subsequently if there is a deficiency judgment. As a potential buyer of a foreclosure, you must know whether the property can be redeemed from you or not.
Try: Visit the website for Find Law.com for further information on how a right of redemption works within the state of California.

Publication period

The publication period refers to the period once the redemption period has expired when the lender must post the auction date in various local newspapers to make the public aware of the auction. The publication period is governed by California law. In terms of California foreclosure listings, they will detail where in the publication period a particular property is before the auction.
Try: Visit the website for Foreclosure University for a further discussion on the publication period within the state of California.