Legal Question in Real Estate Law in California

Re: realestate

There is no right to redeem property after a nonjudicial foreclosure sale. The trustor has no rights of reinstatement or redemption once the trustee's sale is completed. (Moeller v. Lien (1994) 25 Cal.App. 822, 831.)

In a judicial foreclosure, however, the trustor retains a statutory right of redemption for a time period following the judicial foreclosure sale. (Code of Civ. Proc. sec. 729.010.) The amount of time depends on whether or not the proceeds of the sale were sufficient to satisfy the indebtedness. If they were, then the period of redemption is three months. If they are deficient, then one year from the date of the sale. (Code of Civ. Proc. sec. 729.030.)

I have never heard of, or understand the other terms you are using.

Very truly yours,

Re: realestate

While some states provide for a period of time after the foreclosure sale done via non-judicial sale [the debt holder handles everything, as opposed to going to court and the court makes various orders] to redeem the property, California does not. Lenders use the non-judicial foreclosure sale proceeding instead of judicial foreclosure mainly because there is no right to redeem the property after the non-judicial sale [actually, sale notice will say must cure defect 5 days before sale].

In general, there is no time when there is not an owner of a piece of property. Until the foreclosure sale occurs, the foreclosed upon owner is still the owner of the property and can still live on the premises; when the highest bidder signs the paperwork at the auction, ownership has transferred, even though the formal ownership transfer occurs on recording the instrument.

Re: realestate

I don't know where you get this notion that a 90-day right of redemption exists in favor of someone who is foreclosed judicially. Perhaps you are thinking of the time lag between a notice of default and the trustee's sale. That period does indeed approximate 90 days. But there is no such thing as "interim title." When the trustee accepts the high bid at a foreclosure sale, that's it, baby. Title chenges hands and there is no redemption period.

The defaulting borrower can reinstate the loan and cut off foreclosure proceedings up until five business days (not five days) before a scheduled trustee's sale - but in the last five business days redemption is at the mercy of the lender, and after the trustee lowers the hammer at the auction sale, the property has a new owner, and that's final unless there has been a major irregularity in the foreclosure process.

Prior to the foreclosure sale, the old owner is at risk for accidents, and after the sale, the buyer at foreclosure is at risk.