Foreclosure action against real property can be initiated for several different reasons. Most commonly, it is a lender who initiates a foreclosure action after a borrower fails to make payments agreed to under the terms of the mortgage. But foreclosure action can also be brought by Home Owner Associations for non-payment of HOA or condo fees, by federal, state or local taxing authorities for non-payment of taxes or by contractors via a mechanics lien for non-payment for work performed to build or improve a property. The final result of the foreclosure process involves a forced sale of a property with the proceeds being used to satisfy outstanding debts.

The foreclosure process is governed by state law and can vary somewhat from state to state or even county to county. In some states, the mortgage document also contains the exact foreclosure provisions. In general, there are 3 stages to the process: Pre-foreclosure, Auction and Bank Owned (also known as Real Estate Owned - REO for short).

California is a non-judicial state. Once the Notice of Default records the foreclosure time frame begins. California foreclosure law states that within 10 business days a copy of the recorded Notice of Default is sent by certified and regular mail to the borrowers at all addresses provided and any recorded special requests. Within 30 days a copy of the Notice of Default is sent by certified and regular mail to new owners and all junior lien holders to the Deed of Trust being foreclosed. A Trustee's Sale Guarantee Report is ordered from the title company providing all title information. The foreclosure remains dormant for the next 60 days unless the borrower makes contact to cure. California foreclosure law states that the publication period begins once the redemption period has expired. A Notice of Trustee's Sale is prepared and published in an adjudicated paper of general circulation in the city in which the property is located. The Notice of Trustee's Sale is published one time per week for three weeks. The actual Sale is established by adding at least 20 days to the date that the Notice of Trustee's Sale was first published in the newspaper. The Notice of Trustee's Sale is posted on the property and in a public place. At least 14 days period to Sale date the Notice of Trustee's Sale must be recorded in the county in which the property is located. California foreclosure law states that on the day that was established for sale of the property, and only after all publication period requirements have been met, the property is sold to the highest bidder for cash for the full amount of the debt plus foreclosure fee and expenses. If no one bids at the Trustee's Sale, the property automatically reverts back to the beneficiary for the debt. A Trustee's Deed upon Sale is recorded in the county in which the property is located transferring title to the foreclosing beneficiary allowing the marketing of the property to recover their debt. The lender must then try to market the property themselves. .