Foreclosure Vs Short Sale California

Under California mortgage foreclosure laws(Civil Code 2924 h), after the Trustees Sale, the final step in the California foreclosure process is the transfer of the trustee’s deed. The trustee’s deed transfers property to the winning bidder. By default, this will be the lender if no bid higher than the lender's opening bid is received.

At this point, it is too late for the borrower to recover ownership of the property under the California mortgage foreclosure laws. However, if fraud or other identifiable procedural error can be proven then the foreclosure may be overturned if lawsuits are filed.

Once the deed has been transferred under California Mortgage Foreclosure Laws, the property is lost and the owner's credit rating will suffer. 

However, this should be a "worst case scenario" and considered only after the other options are looked at, and ruled out. Property owners who seek assistance from someone who is well versed with the California Mortgage Foreclosure process can usually avoid the Foreclosure process.