During the foreclosure process in Caliafornia, what other types of taxes or fees will I have to pay for ?


Question:
If I cannot afford my monthly mortgage, and the property taxes are included with the loan. How does this effect me, and what do I have to do when I file my taxes? Should I just try to pay for the property taxes with the city to avoid any penalties from the IRS? and will I have to pay for any court, laywer, or processing fees after the property has been sold? what is the after math of the forclosure process? Can the lender come after me for any thing else after a non-judicial foreclosure in Caliafornia?
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In most cases, the lender will pay the taxes on your behalf, because they dont want to risk losing the house to someone else in a tax sale. You are responsible for all the legal fees. Here is a summary of CA foreclosure laws that should help answer the rest of your question

California Foreclosure Law

Timeline: around 120 days

Redemption: only if Judicial Foreclosure

Deficiency Judgments: only if Judicial Foreclosure

Judicial Foreclosure: Yes

Non-Judicial Foreclosure: Yes

Security Instruments: Deed of Trust, Mortgage

The Judicial Foreclosure process is rarely used in California . It will only be done if there is no “power of sale” clause in the original loan documents, or if the lender wishes to pursue a deficiency judgment against the borrower. If this process is used, the lender sues the borrower to obtain a decree of foreclosure and order of sale; the court may give the borrower a right to redeem the property for up to one year.

The Non-Judicial Foreclosure process is more common in California , and is used when there is a “power of sale” clause in the original loan documents. This clause authorizes the lender to sell the property in case of a default. If the loan documents specify the place, time, and terms of the sale, then those details must be adhered to. If they do not specify the time, place, and terms of the sale, then there are a series of guidelines that must be followed.

A notice of default is recorded in the county that the property is located in, and a copy of the notice is sent to the borrower within ten (10) days of the notice being recorded. The borrower is given ninety (90) days from the date the notice is recorded to cure the default.

After the ninety days, if the borrower is unable to cure the default, a notice of sale is recorded. The notice states that the lender or trustee will auction the property within twenty-one (21) days of the notice. Copies of the notice are sent to the borrower by certified mail, as well as posted in a county newspaper for three consecutive weeks before the sale. The notice is also posted directly on the property, as well as in a public forum, such as the county courthouse.
The sale is conducted by the lender's representative at the scheduled time and date. The high bidder must immediately pay the full winning bid amount by cash or certified check and receives a trustee's deed once the sale is completed. The lender will usually bid on the property for the amount of the due loan balance plus costs. Ownership of the property reverts to the lender if there are no other bids.
The lender can not sue the borrower for a deficiency judgment, and the borrower has no right of redemption after the sale of the property.
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