365-day redemption only applied to judicial foreclosures. These are cases where the lender goes to court to obtain a deficiency judgment. This is rare in CA.
I wouldn’t lose any sleep over this element of buying a foreclosure. There’s a lot more to be afraid of, such as buying too early in the down-cycle, undisclosed issues with the property, etc.
Below is the explanation according to RealtyTrac:
“Court foreclosures only occur if a lender desires a deficiency judgment. This process gives a borrower up to one year to redeem the property after the foreclosure sale.
In almost all cases, foreclosures are handled out of court. The process begins when a lender files a notice of default with the county recorder identifying the default amount and the date the borrower must pay off the default. The notice is mailed to the borrower and other affected parties.
Up to five business days before the trustee’s sale, the borrower may pay off the default plus any applicable costs of foreclosure and stop the foreclosure process. Three months after the notice of default is filed, the lender can schedule a trustee’s sale of the property.”
