If you’re facing foreclosure, you may find it challenging just understanding the foreclosure procedures your lender will use to sell your property to satisfy your debt. Yet, you may want to beat the clock by selling your home yourself or pursuing another alternative to avoid foreclosure. To help you prepare yourself for what’s to come, here’s a quick summary of the approximate minimum time-frame for the typical non-judicial foreclosure in California. The actual number of days for your particular situation may vary from the approximate minimum time periods set forth below.
If you stop making your mortgage payment, your lender may take about two, three, four, or more months before it commences foreclosure.
DAY 1: LENDER CONTACT BORROWER
A lender must contact the borrower by phone or in person to assess the borrower’s financial situation and explore options to avoid foreclosure. During the conversation, the lender must inform the borrower of the right to meet with the lender within 14 days and give the borrower a toll-free number for HUD-certified housing counselors. This requirement to contact borrowers only applies to certain owner-occupied residential loans made between 2003 and 2007.
DAY 31: NOTICE OF DEFAULT
For most owner-occupied loans made from 2003 to 2007, a lender may file a notice of default 30 days after contacting the borrower to explore options to avoid foreclosure. The notice of default informs the borrower of the default. It must be filed in the county where the property is located and then mailed within 10 business days to the borrower and others who have requested notice.
DAY 116: NOTICE OF TRUSTEE’S SALE
Five days before the lapse of three months after the notice of default, the lender may record a notice of an upcoming trustee’s sale to be held no earlier than 3 months and 20 days after the filing of the notice of default. The notice of trustee’s sale must be recorded, posted, mailed to the borrower and others, as well as published once a week for three consecutive weeks in a newspaper of general circulation.
DAY 145: DEADLINE TO CURE DEFAULT
Up to five business days before the trustee’s sale, the borrower may reinstate the loan by paying the missed payments plus allowable costs. After the reinstatement period expires, the borrower still has the right to redeem the property by paying the entire debt, plus interest and costs (not just the arrearage) at any time before the bidding begins at the trustee’s sale.
DAY 152: TRUSTEE’S SALE
Although California law allows a trustee’s sale to take place 20 days after the posting of the notice of sale, lenders customarily wait 11 more days to help protect against federal tax liens. At the trustee’s sale, the property is sold at a public auction to the highest bidder. Title is transferred to the successful bidder by a trustee’s deed.
If you have any questions, or if you would like to explore the short sale process and sell your house, call us.
Or just use the Contact Us form below and we will get back to you A.S.A.P.:
Copyright© 2011 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). The information contained herein is believed to be accurate as of August 24, 2011. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney. Permission is granted to C.A.R. members only to reproduce this material for non-commercial purposes (personal use and to distribute to clients). C.A.R. members must reprint the material in its entirety, but may add their own names and contact information where specified.