Foreclosure Process/Timeline

Foreclosure proceedings are initiated by recording a Notice of Default (NOD) in the county in which the property is located. This recording of the Notice of Default gives "Constructive Notice" to the public.

The Notice of Default is mailed within 10 days of its recordation to the trustor at their last known physical address and to any persons who have recorded requests for notice.

The Notice of Default is mailed to anyone holding an interest of record in the property that would be affected by the foreclosure; including successor owners, contract purchasers, junior lienholders, and various assignees.

If after 3 months the borrower has not remitted the arrearages, the lender will authorize and instruct the trustee to set a sale date.

The Notice of Trustee Sale is recorded in the county in which the property is located. The recorded Notice of Sale is considered constructive notice and will include the date, time and location of the foreclosure sale.

Publication - The Notice of Sale is published in an adjudicated newspaper once a week for 3 consecutive calendar weeks with the first publication to occur at least 20 days prior to the date.

Posting - The Notice of Sale must be posted on the property and in a public place in the appropriate city or judicial district of sale.

Mailing - The Notice of Sale is mailed to the property address and to all parties holding an interest of record in the property who would be affected by the foreclosure.

Federal tax liens recorded more than 30 days before the date of the trustee sale are not extinguished by the sale unless the IRS was given notice at least 25 days before the date of the sale.

If the property does not have a common address any interested party may submit a written request for directions to the trustee.

Trustee cannot hold the sale until 14 days after expiration of court order. If Trustor has filed a bankruptcy petition, an order granting a motion for relief from the automatic stay in accordance with Rule 4001(a)(1) is stayed until the expiration of 14 days after the entry of the order, unless the court orders otherwise.

The borrower may reinstate the debt until 5 business days prior to the sale date. If the loan is not reinstated before 5 business days prior to the sale, the lender has the option to call the entire loan due.

After the sale auction is completed and if the property sells to an outside third party bidder, all funds owed to the lender/beneficiary will be prepared for immediate payout. If the property reverts to the lender/beneficiary at the sale, a Trustee's Deed Upon Sale will be issued and the lender will have ownership to the property that was secured by the debt.