Most California foreclosures happen outside court, through a trustee sale, and California’s anti-deficiency rules protect many homeowners from owing more afterward.
What is different in California
- The process usually starts with a notice of default, then at least three months, then a notice of sale published at least 20 days before the trustee sale.
- Before the notice of default, the servicer must contact you about alternatives, and federal rules generally bar starting foreclosure until you are more than 120 days behind.
- Anti-deficiency rules generally protect owner-occupied buyers on a purchase loan, and after a trustee sale the lender usually can’t pursue the shortfall.
- Refinanced or cash-out loans can be treated differently, so get advice before assuming a deficiency can’t follow.
- After a foreclosure, short sale or deed in lieu, the waiting period to buy again depends on the loan type, not the state.
Questions
How long can you not pay your mortgage before foreclosure in California?
Federal rules generally bar starting until you are more than 120 days behind. After the notice of default, at least three more months pass before a sale can be scheduled, so the earliest sale is usually several months after the first missed payment. See also: Mortgage loans in California.
Do I owe money after a foreclosure in California?
Usually not on an owner-occupied purchase loan or after a trustee sale, under California’s anti-deficiency rules. Refinanced loans and second mortgages can differ, so ask a California attorney about your loans. See also: Foreclosure and buying again in Arizona.
How soon can I buy again after a California foreclosure?
The same as anywhere: about three years for FHA, two for VA, seven for conventional, and sooner with some specialty lenders.
Related
- Credit recovery
- Behind on your mortgage: what happens and where to get help
- Home sale proceeds calculator
Foreclosure and buying again in other states: Arizona, Florida, Ohio. All of California: mortgage loans in California.
