The following timeline is only applicable for all non-judicial foreclosures performed in the State of California. The foreclosure process does not begin until the lender is unable to properly collect all back mortgage payments and fees. Typically the process does not start until the borrower (owner) has missed at least 3 monthly mortgage payments. The lender (trustor) will not instruct the beneficiary to start the foreclosure process before trying to resolve the problem with the borrower directly. Once negotiations have failed, the trustor will notify the beneficiary to file a Notice of default and begin foreclosure proceedings.
Day 1 : Record Notice of Default
Borrowers are in default beginning with the first missed payment, although most lenders will not begin a proceeding until perhaps 3 months have passed. Within 10 days Mail and Publish "Notice of Default"
California Civil Code requires that a copy of the NOD be mailed within 10 days of its recording to all persons who are entitled to the notice.The civil code includes junior lien holders to be notified
Many loans are re-instated during this 3 month period. The amount of money needed to re-instate the loan may include the delinquent payments, any advances, fees, and costs associated with the filing. If default is cured, than a "Notice of Rescission" is recorded canceling the NOD.
If the default is not cured, The next step will be to prepare, post, record and publish the "Notice of Trustee Sale".
Within 1 month Mail "Notice of Default" After 3 Months Set sale date 25 days before sale date Send notice to IRS if applicable "Authorization to Publish" is sent to beneficiary. This will authorize the publications of "Notice of Trustee Sale" which must be in a newspaper of general circulation and run each week or three consecutive weeks. The notice is also recorded and posted on the property.
Reinstating the loan may still be possible up to 5 days prior to the sale, however some notes may contain terms that demand the note be paid in full.
Within 10 days from 1st publication Send beneficiary request for property directions
14 days before sale date Record "Notice of Sale"
7 days before sale date In the event of court action "7 day rule" may apply.
5 business days before sale Expiration of right to re-instate the loan The property will be sold at a time and location designated in the posting to the highest bidder. The auctioneer will verify funds of prospective bidders prior to the auction. Funds must be cash or cashiers checks. Sale date Property is sold at "Trustee Sale"