Lenders of home owners in Sacramento can foreclose on a home when the mortgagor (borrower) defaults on the mortgage agreement and loan. The lender must give a notice of foreclosure to the public and then conduct a public foreclosure auction in Sacramento County. Individuals interested in buying Sacramento foreclosures and foreclosed homes throughout the remainder of Sacramento County should use the notices to learn how to participate in Sacramento foreclosure auctions. Bidders can buy Sacramento foreclosed homes by placing the highest auction bid and paying the full amount of the bid at the time of the auction.
Step 1:
When a lender forecloses on a home in the city of Sacramento, California, the lender must post a legal notice in a local Sacramento newspaper. Foreclosures outside the city limits of Sacramento can still be found in a newspaper in Sacramento County when the actual city does not have newspaper of general circulation. The notice must appear for three straight weeks. Locals who have access to Sacramento newspapers can just pick up a copy to find Sacramento foreclosure listings. Those who do not have ready access to local newspapers can use an online foreclosure listing service like Yahoo! Real Estate (see Sources). Search for the “notice of default” and “auction” listings to find Sacramento foreclosures.
Step 2:
Use the legal foreclosure notices to determine the date, time and location of the foreclosure auction. According to California law, the auction must take place in Sacramento County, between 9 a.m. and 5 p.m. on any business weekday (see Sources). You should also determine the address of the foreclosed property by looking at the notice.
Step 3:
Visit and check out the properties to decide whether you would like to place a bid. There is always some risk in buying a foreclosed home because you have no right to inspect the property before the auction. You can ask the owner to enter, but some owners may be very hostile in this situation. Go with a friend or family member if you intend to speak to the owner. At a minimum, you should at least talk to a Sacramento real estate agent to get an idea on home values in that Sacramento neighborhood.
Step 4:
Look at the notice to determine how you must pay for your bid. Generally speaking, you need to pay in cash or by cashier’s check. Although the trustee must accept certain checks, be on the safe side and prepare to pay by cash or cashier’s check (see Sources).
Step 5:
Show up at the auction with enough money to pay your entire bid. The trustee may demand proof of your ability to pay and can also demand that you submit the money right before the end of the auction when it looks like there will be no more bidders. Pay all the money to get the trustee’s deed.
Step 6:
Head to the Sacramento County Clerk/Recorder’s office (at 600 8th Street) to file the trustee’s deed. You should always file a deed as quickly as possible to prove and preserve your ownership rights in the foreclosed property’s chain of title. You must pay a fee of $15 for the first page and $3 for additional pages, as of 2010. You may also have to pay a small percentage (generally less than 1%) of the purchase price in real estate transfer taxes.
Sources:
Sacramento, California Foreclosure Listings on Yahoo!
FindLaw: California Civil Code Section 2924g
FindLaw: California Civil Code Section 2924h
