Legal Question in Real Estate Law in California

First, lenders don't frequently "go to court" to ask for foreclosure. Probably 95%+ of all foreclosures are done by trustee's sale, a private procedure that the borrower authorizes in the event of a default by signing a deed of trust containing a "power of sale" clause.

Occasionally, lenders do opt for judicial foreclosure (a court proceeding). This is much more expensive and time-consuming for the lender, so they don't go this way unless there is a darn good reason for them to prefer a court-ordered sale over a trustee's sale. The two most common reasons for going the judicial foreclosure route are (1) the loan being foreclosed does not, for some reason, contain an effective power of sale; or (2) the foreclosing lender wants additional relief against the defaulting borrower, generally a deficiency judgment, not available in a trustee's sale.

When the lenders go to court, assuming they haven't filed any papers with the court yet, their first step will probably be to go to the clerk's window and file a lawsuit, or lawsuits, for judicial foreclosure. They may also be asking for some kind of immediate relief, such as an ex-parte temporary restraining order (TRO) against you, to have the court issue an immediate order restraining you, you family, your tenants, etc. from something or other. This should either be described in the letter, or in a further notice you'll get today or tomorrow.

If there is going to be a request for a TRO or any other kind of ex-parte relief, you can and should appear at the hearing, on the 16th or whenever it is held. It will be brief. You should take your lawyer with you. The subjects the judge will let you talk about during the ex-parte hearing will be strictly limited to whether the TRO (or whatever) should be granted. This will not preclude your having a prior or subsequent discussion with the banks' lawyers, should they be willing to talk to you. Be careful what you say.

Without knowing what the banks have sent you that says they are "going to court" it is impossible to tell what situation you really are in. If they are really going to court for foreclosure on that date, then you are in very deep trouble for not responding to this situation sooner. I don't know what kind of TRO they could be going in to ask for. So I doubt that is what this hearing on the 16th is about. You need to talk to a lawyer right away and go over the details of this with him so you can get some real answers. Otherwise you may be run over by a steamroller on the 16th.