The Forclosure Process
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Mortgage Payments Become DELINQUENT |
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Notice of Default
(Recorded and mailed)
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Notice of Trustee Sale
(Published and Mailed)
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Trustee Sale
(21 Days after End of 3rd Month)
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“Reinstatement Period”
Starts 35th Day
after N.O.D. |
“Redemption Period”
Starts 36th Day after N.O.T.S.
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3 Months
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To Reinstate: |
To Redeem: | Home Sold: |
| Trustee Fees | Entire Loan Amount | No Right of Redemption |
| Back Payments | Back Payments | |
| Allowable Expenses | Allowable Expenses | |
Summary:
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Trustee collects all necessary documents, orders a title search, identifies all lien holder and other parties entitled to receive a “Notice of Foreclosure.”
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“Notice of Default” is prepared, recorded, published, posted and mailed to all concerned parties.
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Trustor (Borrower) has 35 days from the mailing of the notice to reinstate the loan including all expenses.
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Once the 35 days has expired, the Trustor enters the second phase of the foreclosure and has three months from the date of the recording of the “Notice of Default” to redeem the property by paying the full amount of the loan plus all allowable expenses to date.
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Approximately 10 days before the 3 three months has expired, the trustee will begin publication of the “Notice of Trustee Sale.” The notice must be advertised for 3 consecutive weeks. “The Notice of Trustee Sale” must also be posted in three public places for 21 successive days.
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Trustee Sale is held on the exact day stated in the “Notice of Trustee Sale”. The sale deprives the homeowner of all interest in the property and there is no right of redemption.
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If there are no bidders at the “Trustee Sale”, the property reverts back to the lender as an REO.
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If there is a successful bidder, that person becomes the new owner and has immediate rights to the property. If the occupants refuse to move, legal action may be taken to have them evicted.
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Note: Homeowners have approximately 4 months before they can be evicted from their home.
Chris Saizan
916-459-0246
csaizan@kw.com
