Typical California Foreclosure Time Line (Non-Judicial):
When Does It Start?
Payment Delinquent (Pre Foreclosure)
Most banks will wait until a loan is 90 days past due before starting foreclosure proceedings, but some will do it in 60 or even 30 days. If you have been seriously late in the past, the bank may have policies that escalate the amount of time they wait before starting a foreclosure.
Notice of Default (NOD)
In California, the timeline of non-judicial foreclosure begins when the trustee files a notice of default (NOD). This is a letter which is sent to the owner/trustor notifying him or her of their default of the loan. The copy of the notice of default is recorded at the County Recorder’s Office of the appropriate county.
Short Sale (Short Payoff)
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower.
Loan Modification
Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower (i.e mortgagor and mortgagee). In general, any loan can be modified.
Notice of Trustee Sales (NTS)
The step that follows next is the stage of the foreclosure process in which there is a filing of the Notice of Trustee’s Sale. No sooner than ninety (90) days after the trustee records the Notice of Default, the Trustee must publish a notice of trustee’s sale in the local paper and simultaneously file that notice with the county recorder’s office.
Trustee Sale Auction
No sooner than twenty days (20) after the notice of trustee sale is filed, the home may be sold at public auction for the amount of the debt plus foreclosure costs. If no one bids at the auction, the lender assumes ownership of the property, and may dispose of that property to recover their cash investment.
Real Estate Owned (REO)
If no one bids at the auction, the lender assumes ownership of the property, and may dispose of the property to recover their cash investment.
There are options available that may allow you to save your home.
But the longer you wait the fewer options are available
-Freddie Mac
This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call me today for a free confidential evaluation of your individual situation, property value, and possible options.
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