Real Estate Law
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Once the bank has the automatic stay lifted, it can immediately begin foreclosure. A non-judicial (doesn't go through court) foreclosure takes about 5-6 months to complete.
Prior to initiating a foreclosure, the lender must record a notice of default in the county in which the property is located and the defaulting borrower must be personally served with such notice at least 120 days before the sale date. A copy of the notice of default must be published date at least 4 consecutive weeks in a newspaper of general circulation in the county in which the property is located with the last notice published at least 30 days before the proposed sale.
When the property being foreclosed upon is occupied at least three (3) good faith attempts must be made to serve the Notice of Sale on different days during a seven (7) day period on the adult occupants of the property. These service attempts must be made at least 30 days before the date of the sale.
Foreclosure sales must take place on a day other at the time, place and date designated in the notice of sale as part of a public auction. The trustee will auction the property to the highest bidder. The foreclosure sale may be postponed for 30 days from the original sale date if at least 20 days written notice is provided to the original recipient of the notice of default.
A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount that the underlying mortgage or deed of trust secures. Deficiency actions must be brought within 90 days after the foreclosure sale. Judgment cannot exceed the difference between the amount of the debt and the fair market value of the property. Costs and fees in filing the deficiency can also be recovered. However, you can include this in your bankruptcy and have the debt discharged.