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California Foreclosure Process- It’s not too late to Short Sale!

With the overwhelming amount of homeowners finding themselves in sticky financial situations, it is not uncommon for them to not know all of their choices. So many families are just looking to make ends meet, and get out from under any debts that they may be quick to choose the foreclosure route because they just want to be done with their headache. As an agent, it is important for you to help them understand they have options.

In many cases, it is never too late to short sale. Even after a notice of trustee sale date has been set, there is always hope. The goal of this article is to help you understand the foreclosure timelines in California so that you are able to educate prospective and current clients.

The foreclosure process begins with the borrower missing a monthly payment. Since this first missed payment is listed as a technical default, late fees are assessed, but the lender may not proceed with the foreclosure process until the third missed payment. The lender will officially begin foreclosure proceedings if the borrower is unable to resolve the defaulted amount through forbearance or any other means of loss mitigation.

Here is a chart detailing the events after the initial 90 days and the first day upon receiving a notice of default.

 

Day 1: Lender files a Notice of Default with the county recorder.
Within 10 business days:      The notice is mailed to the borrower’s home.
After 3 months: The Trustee Sale date is set.
25 days before the Trustee Sale Date: The I.R.S. is notified of the sale date via mail.
Within 10 days from 1st publication of the sale date: The lender will request directions for the property sale date.
 14 days before the Trustee Sale date: The Notice of Trustee Sale is recorded.
7 days before the sale date: If court action is necessary this rule may apply.
5 business days before the sale date: The borrower’s right to re-instate the loan expires.
Sale Date: The property is sold to the highest bidder, or if no buyer can be found the property reverts to the lender at the auction, effectively becoming a bank owned property.
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It is important for a distressed homeowner to know that even though foreclosure proceedings have begun on their property, that a short sale is still an option. Trained negotiators will most likely be able to stop the foreclosure date and start the short sale process. At Short Sale Experts INC, we are known for helping homeowners in these exact situations. We can help take the headache out of a foreclosure and put the short back in short sale.

 

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925 B Street Suite 102
San Diego, CA 92101

Phone: 1-888-746-7820
info@ShortSaleExpert.com