Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In California, foreclosure is a legal process where a lender can terminate a borrower's interest in a property due to the borrower's failure to make the required mortgage payments. California foreclosures can be either judicial, where the process goes through the courts, or non-judicial, which is more common and does not involve court action. Non-judicial foreclosures are governed by the California Civil Code, particularly sections 2924 through 2924k, which set forth the requirements for the foreclosure process, including the notice of default, notice of sale, and the conduct of the foreclosure sale. Borrowers in California have the right to reinstate the loan before a certain period and may have the right of redemption after the foreclosure sale, depending on whether it was a judicial or non-judicial foreclosure. Additionally, California has specific protections for borrowers, such as the Homeowner Bill of Rights, which provides additional requirements for lenders to contact homeowners before initiating foreclosure and to provide options for foreclosure prevention.