Subscribe to PostsWelcome to ExtremeShortSale.com & the Gregory Real Estate Group! Matt Gregory leads our team and has helped many friends and clients avoid foreclosure and short sale their homes. One common question we always hear is; what is the California Non Judicial foreclosure process and how long does it take? Take a look at the video and read below to find out! We’re always happy to answer any questions about California Real Estate, especially short sales. You may contact us at 661-713-4799.
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Many of us are unaware that your lender can actually file a Notice of Default (NOD) after you miss even one payment. This almost never occurs, but it’s an interesting fact. Generally, a Notice Of Default (NOD) will be filed after 90 days has passed since the last payment. It could be, and often is longer than 90 days but 90 days a a good rule of thumb.
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On the surface, the dates for a foreclosure process are easy to understand but there are a number of other activities occuring within time period, after the NOD is actually filed. Also, keep in mind that some of the dates may flex. The dates mentioned below are the minimums. The foreclosure process can, and often does take longer than provided by state law, but don’t bet on it! The quick version of the timeline is as follows:
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Once the Notice Of Default is filed the foreclosure process is underway.
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Day 1 – Day 90 Redemption Period - Notice Of Default Filed. 90 Day Redemption Period
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Day 91 – Day 110 Publication Period - Notice Of Trustee Sale
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Day 111 or more Trustee’s Sale Date – The Trustee’s sale can now Property can now be sold
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Here’s a more complete and longer version of the process:
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Redemption Period
Once the Notice of Default records, the foreclosure time frame is underway. California law states that within 10 business days a copy of the recorded Notice of Default is sent by certified and regular mail to the borrowers at all addresses provided and any recorded special requests. Within 30 days a copy of the Notice of Default is sent by certified and regular mail to the owners and junior lien holders to the Deed of Trust being foreclosed. A Trustee’s Sale Guarantee Report is ordered from the title company providing all title information. The foreclosure remains dormant for the next 60 days unless the borrower makes contact to cure.
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Publication Period
California foreclosure law states that the publication period begins once the redemption period has expired. A Notice of Trustee’s Sale is prepared and published in an adjudicated paper of general circulation in the city in which the property is located. The Notice of Trustee’s Sale is published one time per week for three weeks. The actual Sale is established by adding at least 20 days to the date that the Notice of Trustee’s Sale was first published in the newspaper. The Notice of Trustee’s Sale is posted on the property and in a public place. At least 14 days period to Sale date the Notice of Trustee’s Sale must be recorded in the county in which the property is located.
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Trustee’s Sale
California foreclosure law states that on the day that was established for sale of the property, and only after all publication period requirements have been met, the property is sold to the highest bidder for cash for the full amount of the debt plus foreclosure fee and expenses. If no one bids at the Trustee’s Sale, the property automatically reverts back to the beneficiary for the debt. A Trustee’s Deed Upon Sale is recorded in the county in which the property is located transferring title to the foreclosing beneficiary allowing the marketing of the property to recover their debt.
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All sales under a power of sale in a deed of trust will be made between the hours of 9:00 a.m. and 5:00 p.m. on any business day, Monday through Friday, at the time specified in the notice of trustee sale. The sale must be made a public auction to the highest bidder. The trustee has the right to require every bidder to show evidence of ability to pay the full bid in cash, cashier�s check or certain bank checks. Each bid is by law an irrevocable offer to purchase. However, a higher bid cancels an earlier bid. It is unlawful and a criminal offense (a fine of $10,000 or up to one year in jail) to offer anyone consideration not to bid, or to fix or restrain the bidding process in any manner. Debtors may reinstate up to five days before non-judicial foreclosure sale.
Junior lien holders may no longer redeem, so they may try to protect themselves by (1) advancing funds to bring the senior loan payments current, then foreclosing for the sums advanced; (2) bidding at the foreclosure sale so the price will be sufficient to pay off the senior and the junior liens; or (3) acquire the property by bidding at the foreclosure. If the debtor has a right to redeem and does so, the junior who purchased the home must be reimbursed. Junior liens do not reattach the property if a borrower redeems a senior lien whose foreclosure extinguished the junior. This helps borrowers by encouraging the junior to bid up to the property to fair market value at the foreclosure sale, or else lose out, giving borrowers closer to fair value at sale.
Lenders may not seek a deficiency judgment if (1) the foreclosure is non-judicial or if (2) foreclosure is on a purchase money obligation. The same rules do not apply to guarantee or later lien holders. The lenders may seize alternative collateral. If the lender forecloses by filing a lawsuit, then the lender can obtain both a foreclosure sale order and a judgment against the borrower for a deficiency after the court-ordered sale, but only for the difference between the judgment and the fair value of the security.
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Pete@ExtremeShortSale.com 661-406-2959
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