What is Foreclosure?
Foreclosure is the legal process a lender uses to take back and sell a property after the borrower has fallen far behind on payments. In California, most foreclosures are “non-judicial,” meaning the lender can sell the home at a public trustee’s sale without going to court after giving the required notices. The process ends with the property sold to the highest bidder or returned to the lender.
Example: After several missed payments and a recorded Notice of Default, a lender schedules a trustee’s sale. If no one cures the debt before the sale date, the home is auctioned to recover what is owed.