The Foreclosure Timeline in California
Knowing your states foreclosure timeline is essential. Most borrowers have no idea how long they can be in their property until they will get evicted. Some think its one month after first missed payment while others think it’s much longer. The truth is it is depends on what state you are located in since foreclosure law varies state by state. You must first know whether your state is judicial or non judicial.
California is a non-judicial Foreclosure state
California is a non-judicial Foreclosure state under a Deed of Trust. Foreclosure begins with the Trustor (borrower) not making the monthly payments to the Beneficiary (Lender), the first missed payment is technical default, but in practical terms, most Beneficiaries do not begin the process until the third payment is missed. If the borrower cannot resolve the defaulted payment amount with the lender through Forbearance or other Loss Mitigation measures, the lender will instruct the Trustee to begin Foreclosure proceedings.
Foreclosure timeline in California:
NOD (Notice of Default) is filed – NOD’s are usually filed after 3-5 months of delinquent mortgage payments (timing depends on the bank).
TSN (Trustee Sale Notice) – filed and posted 90 days after NOD.
Trustee Sale is 21 days after TSN. After the trustee sale (TS), the bank owns the home.
Bank posts a “3 day Notice to Vacate” – if owner occupied. (If tenant occupied, then a 60 day Notice to Vacate is posted.) Most banks will offer “Cash for Keys” to have you vacate and leave the home in “broom clean” condition.
It is important to understand what NOD (Notice of Default) means. Notice of default is the official notice that foreclosure has been filed and being pursued. A borrower should know if an NOD has been filed because they will have been served in person or through some certified mailing. They can also expect to get a thick stack of legal documents, which may look very threatening.
In some states the process may be as quick as a couple months. It is super important your real estate professional truly understands your state’s timeline since that is really the timeline you are up against. Depending on your situation you will now know how fast or slow you need to move to beat the foreclosure sale date.
To discuss further the topic of the foreclosure timeline, and methods to remedy your situation and save your credit, please pick up the phone and call us. We can help you and your family in this difficult period.
Contact us about your probate questions too. Parents may die with a reverse mortgage, or an “upside down” property which you are required to sell. We can help you with this problem as well.
Mona Salem 310 925-4782 | Long Beach Short Sales |
Mona Salem | Long Beach Short Sales