Foreclosure Timeline

It’s imperative you understand the Foreclosure Timeline so you can determine where you are in the foreclosure process.  This tells you “How Long Do I Have Before They Foreclose On My House.”

If you have any trouble determining the foreclosure time line for your California state property, I can help.  Please contact our office for additional information.

California State Foreclosure Time Line Information

  1. Borrower experiences financially difficulty and has trouble keeping up with mortgage payments. This is called being in “default.” Lenders will often wait as much as 4 –12 months before officially beginning foreclosure. They will attempt to contact you via letters and phone calls asking you to reinstate the mortgage, but they have not yet filed a lawsuit against you to try to take the property back.
  2. The foreclosure process by statute begins when Notice of Default (N.O.D.) has been filed by lender. Borrower may reinstate the loan by paying past-due payments and penalties. The lender usually publicizes the pending foreclosure in local newspapers and by filing in the public records at the courthouse. A hearing is scheduled at the courthouse to be sure the homeowner understands what is happening.
  3. Trustee’s Sale (or public auction at the courthouse).   Investors bid for the house that is being foreclosed. Revenues from the sale are used to pay back mortgages, judgments and other liens attached to the property. Because the home sells for so little, very rarely does the homeowner receive any of their equity.
  4. After the sale. The foreclosed homeowners are evicted from their home if they have not already been asked to leave.A foreclosure is noted on the credit report – making it very difficult to obtain credit for cars, homes, college, etc. in the future.
A.</span></b><span style=”font-size:11.0pt;mso-fareast-font-family:Calibri;mso-fareast-theme-font:
minor-latin”> <span style=”mso-spacerun:yes”>&nbsp;</span><span style=”mso-tab-count:
1″>&nbsp;&nbsp; </span>Borrower experiences financially difficulty and has
trouble keeping up with mortgage payments.<span style=”mso-spacerun:yes”>&nbsp;
</span>This is called being in <b style=”mso-bidi-font-weight:normal”>“default</b>.”<span style=”mso-spacerun:yes”>&nbsp;
</span>Lenders will often wait as much as 4 –12 months before officially
beginning foreclosure. They will attempt to contact you via letters and phone
calls asking you to reinstate the mortgage, but they have not yet filed a
lawsuit against you to try to take the property back.<o:p></o:p></span></p>
<p class=”MsoNormal” style=”margin-left:27.0pt;text-indent:-27.0pt;tab-stops:
242.2pt”>
<span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”><o:p>&nbsp;</o:p></span></p>
<p class=”MsoNormal” style=”margin-left:27.0pt;text-indent:-27.0pt;tab-stops:
242.2pt”>
<span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”>B.
<span style=”mso-tab-count:1″>&nbsp;&nbsp;&nbsp;&nbsp; </span>The foreclosure
process by statute begins when <b style=”mso-bidi-font-weight:normal”>Notice of
Default (N.O.D.)</b> has been filed by lender.<span style=”mso-spacerun:yes”>&nbsp;
</span>Borrower may reinstate the loan by paying past-due payments and
penalties.<span style=”mso-spacerun:yes”>&nbsp; </span>The lender usually
publicizes the pending foreclosure in local newspapers and by filing in the
public records at the courthouse.<span style=”mso-spacerun:yes”>&nbsp; </span>A
<b style=”mso-bidi-font-weight:
normal”>hearing</b> is scheduled at the courthouse to be sure the homeowner
understands what is happening.<o:p></o:p></span></p>
<p class=”MsoNormal” style=”margin-left:27.0pt;text-indent:-27.0pt;tab-stops:
242.2pt”><b style=”mso-bidi-font-weight:normal”>
<span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”>C.</span></b><span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”>
<span style=”mso-tab-count:1″>&nbsp;&nbsp;&nbsp; </span>
<b style=”mso-bidi-font-weight:normal”>Trustee’s Sale</b> (or
<b style=”mso-bidi-font-weight:
normal”>public auction</b> at the courthouse).<span style=”mso-spacerun:yes”>&nbsp;
</span>Investors bid for the house that is being foreclosed.<span style=”mso-spacerun:yes”>&nbsp;
</span>Revenues from the sale are used to pay back mortgages, judgments and
other liens attached to the property.<span style=”mso-spacerun:yes”>&nbsp;
</span>Because the home sells for so little,
<i style=”mso-bidi-font-style:normal”>very</i> rarely does the homeowner receive
any of their equity.<span style=”mso-spacerun:yes”>&nbsp; </span><o:p></o:p>
</span></p>
<p class=”MsoNormal” style=”margin-left:27.0pt;text-indent:-27.0pt;tab-stops:
242.2pt”><b style=”mso-bidi-font-weight:normal”>
<span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”>D.</span></b><span style=”font-family:&quot;Times New Roman&quot;,&quot;serif&quot;”>
<span style=”mso-tab-count:1″>&nbsp;&nbsp;&nbsp; </span>
<b style=”mso-bidi-font-weight:normal”>After the sale</b>.<span style=”mso-spacerun:yes”>&nbsp;
</span>The foreclosed homeowners are evicted from their home if they have not
already been asked to leave.<span style=”mso-spacerun:yes”>&nbsp; </span>A
foreclosure is noted on the credit report – making it very difficult to obtain
credit for cars, homes, college, etc. in the future.<o:p></o:p></span></p>

Contact Information

Email: Dave.Rozansky@roadrunner.com

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