Non-Judicial & Judicial Foreclosure
If you own or operate a mortgage company or are a lender on commercial or residential investment property, you have options in California when your borrower defaults on the loan. You can pursue foreclosure proceedings through the courts or seek the recovery of property through non-judicial foreclosure. In either situation, you want an experienced lawyer to protect your interests, someone who knows and understands the laws and procedures.
At Braun Gosling we work almost exclusively with real property lenders, representing banks, mortgage and other financing companies in foreclosure actions on commercial and residential investment properties. We handle both judicial and non-judicial foreclosures (trustee’s sales).
We will handle all aspects of a foreclosure proceeding that takes place in the courts. This type of proceeding, though slower than non-judicial foreclosure, may allow you to preserve the right to seek a deficiency in the event the property is sold for less than what the borrower owes you (if a deficiency judgment is not otherwise barred by California law). We will also help you request the appointment of receiver to enforce an Assignment of Rents and Profits clause contained in a deed of trust – when that remedy is available. We will represent you throughout the process, from the filing of the initial lawsuit through the sale of the property and entry of a deficiency judgment.
In many instances in California, foreclosures are not processed through the court system. Instead, the property is sold by a trustee. This procedure has many advantages over a non-judicial foreclosure. The procedure is usually quicker and cheaper than a judicial foreclosure action and, unlike a judicial foreclosure proceeding, the buyer does not have the statutory right to redeem (repurchase) the property after the sale. We can advise you regarding your rights if you prefer to pursue non-judicial foreclosure, as an attorney is not usually involved in the handling of a non-judicial foreclosure.