Understanding The 3 Step California Real Estate Foreclosure Process…
In this market, there are many challenges for homeowner that could cause them to fall behind on their mortgage payments. It could be anything from job loss to a death in the family.
In a recovering market another potential scenario is when a homeowner needs to sell but the value of the house is “upside-down”, the market value of the home is actually less than the amount owed on the mortgage. In this scenario you could try a short sale, however if unsuccessful the threat of foreclose becomes real.
Foreclosure is the proceeding in which a mortgage holder, bank or other secured creditor sells or repossesses a real property after the Homeowner has failed on the terms of their agreement (a mortgage or a deed of trust).
Whatever the reason, after consistently missing payments the lender will usually consider the loan in default and begin with the foreclosure process. The Lender will have the right to sell the property or even call the loan due.
In California short sale / foreclosures have 3 steps in the timeline towards the property being sold.
1. Notice of Default (NOD):
A Notice of Default is a public notice given to the homeowner. It could be posted on the window or door, or mailed. When a borrower is in default, or behind in mortgage payments, the lender will attempt to collect by any means necessary, including seizing the home. In California lenders usually do not file an NOD until the homeowner is at least 90 days behind in payments. At this point many homeowners will try a short sale to avoid the property going to foreclosure.
2. Notice of Trustee Sale (NOTS):
A Notice of Trustee Sale is a public notice, given to the homeowner and published in a newspaper communicating a date for auction. This is also generally posted on the door; it is generally at least 21 days before the sale takes place.
An auction is a public place, usually a courthouse, where properties are auctioned to the highest bidder.
Contact us today if you have questions or would like some assistance.
Your friends and local real estate experts,
Oliver, Sam, Sandro
The Home Team
Contact us today:
Oliver Graf – Direct: (760)237-8006
Sandro Natale – Direct: (949)290-2599
Sam Khorramian – Direct: (858)518-1533
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