What happens when a house goes up for auction?

Typically, the lender starts the bid for the amount owed on the property plus any foreclosure fees. At the auction, the property goes to the highest bidder. After the bidding ends, the new homeowner gets the trustee’s deed as proof of ownership to the property.

What happens when a house goes into foreclosure?

Instead, the bank must foreclose on the mortgage or trust deed and then seize the home. Sellers may stop making payments on their mortgage for a number of reasons. If the seller is unable to pay the outstanding debt of the home or sell the property with a short sale, the property will then go into foreclosure.

How does a foreclosure work in the state of California?

Foreclosure is a mortgage lender’s legal remedy for enforcing payment on a mortgage loan. Foreclosure allows the lender to sell your mortgaged house and use the sales proceeds to pay off the outstanding balance on the mortgage loan. California statutory law strictly governs foreclosure proceedings.

When does an executor allow a property to go into foreclosure?

If no buyer can be located for the property and continuing to pay the mortgage payments would deplete the cash assets, an executor may choose to allow the property to go into foreclosure. This may be especially true if the estate has little or no equity in the property.

Can a bank foreclose on a property if the original borrower dies?

If the property is in foreclosure when the original borrower dies, the mortgage lender will sometimes continue with the foreclosure process without informing their heir(s), which could possibly result in the home being sold in a Sheriff Sale.

How long does it take to get out of a foreclosure?

The process will likely take at least several months—longer in states with drawn out foreclosure timelines —with the exact time depending on the type of foreclosure proceeding your lender chooses, how fast the lender moves through the foreclosure process, and state eviction laws.