Nonjudicial Foreclosure Process in Los Angeles County

Los Angeles commercial buildings at night, some of which are being foreclosed.In Los Angeles County, non-judicial foreclosures are the most common track for foreclosing commercial properties. California foreclosure laws are extremely complex; lenders can protect their business and their assets by ensuring that they adhere to the state’s requirements. Following the steps in the process is crucial. Here are a few things that lenders enacting their first ever foreclosure should know about Los Angeles County’s non-judicial foreclosure process.

2022 FHFA Loan Limits in Los Angeles County

In California, FHFA loan limits are $647,200 for single-unit homes, $828,700 for two-unit homes, $1,001,650 for three-unit homes, and $1,244,850 for four-unit homes. In areas where the cost of living is high, conforming loan limits for single-unit homes are $970,800, for two-unit homes are $1,243,050, for three-unit homes are $1,502,475, and for four-unit homes are $1,867,275.

California has a high volume of high-cost counties. In Los Angeles, a county with a famously high cost of living, loan limits are increased to reflect the current housing prices. Increased limits mean that lenders have more assets that need to be protected, along with higher scrutiny to follow compliance laws.

Non-Judicial Foreclosure in Los Angeles County

No court is needed to carry out the non-judicial foreclosure process. Keeping the process out of the courtroom both speeds up the process and keeps costs down.

The foreclosing party must follow the correct pre-foreclosure protocols, according to the terms of the agreement. The foreclosure process begins when a property trustee records a Notice of Default (NOD). Once the NOD is issued, the borrower has three months to bring the loan current or pay off the debt.

If the borrower takes no action, and the lender has followed the correct procedure, the lender issues a Notice of Sale (NOS) and may sell the foreclosed property to recover any losses. Twenty days before the sale date, the NOS is sent to everyone who was entitled to a copy of the Notice of Default. The sale must be published once a week for three consecutive weeks in a newspaper, and posted on both the property and in a public place. The right to reinstate terminates five business days before the sale date or the postponed sale date. If not reinstated, the property can be sold at auction to the highest bidder.

Borrowers have no post-sale right of redemption in non-judicial foreclosure, and in some cases, lenders may be able to get a deficiency judgment.

The COVID-19 pandemic brought with it massive state and federal relief programs, some of which have directly affected foreclosure proceedings. The newest COVID-19 California Rent Relief Program is accepting applications until June 30, 2022.It’s important for lenders to stay on top of the latest developments, especially regarding foreclosure and eviction relief for borrowers and renters in California.

Keep Your Team Educated About Foreclosure Law

At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.

Leave a Reply