When homeowner falls behind on 2 to 5 consecutive mortgage payments, the lender begins the California Non-Judicial Foreclosure process as follows:
Your lender orders the Trustee to file a NOD or ’Notice of Default’. This document is recorded with the County Recorder. This is a crucial stage for the homeowner. It is vital that you take action by this point, before it becomes too late.
Within 10 days:
Within 10 days of recording the NOD, copies of the recorded document are sent to the borrower (homeowner) and anyone who has filed a ’Special Requesting for Notice’. At this time the NOD is also published.
Within 1 month:
NOD is mailed to borrower again and all parties with interest in title (1st lender, 2nd lender or servicing companies for lenders), pursuant to California Civil Code 2924 (c).
After 3 months:
During the 3 months from ’Day 1’ the lender will contact borrows in an attempt to collect past due payments. At the end of this 3-month period the Notice of Default period ends, and Notice of Trustee Sale (NTS) period begins. Sale of property date, time and location are set.
25 Days prior to Sale Date:
Notice of Trustee Sale is sent to the IRS.
At least 20 days prior to sale date:
Notice of Trustee Sale is posted, mailed and published. The NTS is printed for 3 consecutive weeks in an adjudicated newspaper.
14 days prior to sale date:
Notice of Sale is recorded with the County Recorders Office.
5 business days before sale date:
Right to reinstate expires. This is Borrower’s last chance to bring all debt to lender current.
Property is sold to highest bidder at a public auction. If there is no buyer at this time the lender takes the property back and property is listed as a foreclosure sale.