CALIFORNIA FORECLOSURE TIMELINE:
In California foreclosure process, the lender typically files a Notice of Default when the lender is at least 60 days behind in terms of the mortgage payment. Then on the 45th to 60th day, a “breach” letter will be sent to the borrower which states the mortgage terms and the borrower is only allowed 30 days to find a solution for the unpaid amount. In this period, phone calls from the mortgage collector will come frequently. Then, the borrower will offer options to the borrower to resolve his or her predicament and those options are repayment plan and loan modification.
Then, on the 60th to 90th days, a notice of default will be sent to the borrower and collection costs will be probably added to the late fees. Furthermore, the loan will be turned over to the lender’s legal department which will send the documents to a local attorney who will begin the foreclosure proceedings. Then on day 150 to 415, Notice of Trustee Sale will be filed, and then the borrower’s home will be scheduled to be sold at a foreclosure auction or a foreclosure sale. There are benchmarks that must be met during a foreclosure process, since, a foreclosure proceedings is a legal event. Advertising of the impending foreclosure in the local papers should be done, once the case is being handled by the local attorneys. The homeowner or the borrower have every right to stop the process leading to foreclosure, since, most states have laws regarding that. During this period, there are states that give chance to the borrower to purchase the property they have the ability, but, most homeowners or borrowers will be forced out from their homes by the department of the local sheriff.
The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust. Foreclosures begin with the Trustor (borrower) not making the monthly payments to the Beneficiary (Lender), the first missed payment is technical default, but in practical terms, most Beneficiaries do not begin the process until the third payment is missed. If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through Forbearance or other Loss Mitigation measures, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings
Day 1
Record Notice of Default
Within 10 business days
Mail and publish Notice of Default
Within 1 month
Mail Notice of Default
After 3 months
Set sale date
25 days before sale date
Send notice of sale to I.R.S. (when necessary)
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
If court action, 7day rule may apply
5 business days before sale date
Expiration of right to re-instate the loan
Sale date
Property is sold to highest bidder at public auction
Each state in the U.S. handles it’s real estate foreclosures differently, it’s
important to understand those differences and know your specific state’s procedures.
The terms used and timeframes vary greatly from state to state, but the following
information provides a general overview of the different processes and
considerations. If you haven’t done so yet, you can review our guide to each state’s
procedures at foreclosure procedures.
Judicial Foreclosures
Judicial foreclosures are processed through the courts, beginning with the lender
filing a complaint and recording a notice of Lis Pendens. The complaint will state
what the debt is, and why the default should allow the lender to foreclose and take the
property given as security. The homeowner will be served notice of the complaint,
either by mailing, direct service, or publication of the notice, and will have the
opportunity to be heard before the court. If the court finds the debt valid, and in
default, it will issue a judgment for the total amount owed, including the costs of
the foreclosure process. After the judgment has been entered, a writ will be issued
by the court authorizing a sheriff’s sale. The sheriff’s sale is an auction, open to
anyone, and is held in a public place, which can range from in front of the courthouse
steps, to in front of the property being auctioned. Sheriff’s sales will require
either cash to be paid at the time of sale, or a substantial deposit, with the balance
paid from later that same day up to 30 days after the sale. Check your local
procedures carefully. At the end of the auction, the highest bidder will be the
owner of the property, subject to the court’s confirmation of the sale. After the
court has confirmed the sale, a sheriff’s deed will be prepared and delivered to the
highest bidder, when that deed is recorded, the highest bidder is the owner of the
property.
Non-Judicial Foreclosures
Non-judicial foreclosures are processed without court intervention, with the
requirements for the foreclosure established by state statutes. When a loan default
occurs, the homeowner will be mailed a default letter, and in many states, a Notice of
Default will be recorded at approximately the same time. If the homeowner does not
cure the default, a Notice of Sale will be mailed to the homeowner, posted in public
places, recorded at the county recorder’s office, and published in area legal
publications. After the legally required time period has expired, a public auction
will be held, with the highest bidder becoming the owner of the property, subject to their
receipt and recordation of the deed. Auctions of non-judicial foreclosures will
generally require cash, or cash equivalent either at the sale, or very shortly thereafter.
It is important to note that each non-judicial foreclosure state has different procedures.
Some do not require a Notice of Default, but start with a Notice of Sale.
Others require only the publication of the Notice of Sale to announce the sale, with no
direct owner notification required. You need to know the specific procedure for your
state.
|
STATE
|
TYPE OF
FORECLOSURE
|
MONTHS
TO FORECLOSE
MINIMUM/EXPECTED
|
DEFICIENCY
JUDGMENT
|
REDEMPTION
PERIOD
|
|
California
|
Primarily
Non-Judicial
|
4/4
|
Not Practical
|
None
|
The Golden State, California is the most populous state in the U.S., with just about 34 million people living there. It's the 3rd largest in area, and its economy is ranked in the top ten in the world. The greatest part of the population lives in the San-San corridor, stretching from San Francisco to San Diego, with the greatest concentrations living in the Los Angeles metro area and the San Francisco bay area. We've separated our California foreclosure resources into individual county pages; you can find local resources by following the links below. Smaller counties won't have significant resources available, or that many foreclosures. Southern California counties with significant numbers of foreclosures are Los Angeles, Orange County, San Diego County, Riverside County, San Bernardino County, and maybe Ventura.
Northern California counties with higher foreclosure numbers will be Alameda, Contra Costa and Sacramento.
Placer County has an approximate population of 292,235 living in 1,404 square miles with a median household income of $57,535. If you are interested in learning more about the purchase of distressed properties, we have a series of articles about finding foreclosures.
Foreclosure Data Providers
Foreclosure.com
$40/mo
Notice of Default Notice of Trustee Sale Real Estate Owned
Dataquick 888-604-3282
$75/mo.
Notice of Default Notice of Trustee Sale Real Estate Owned
Placer County
No On-Line Records Available
Hard Money Sources
iLoans
Internet provider of hard money
Sacramento County
Sacramento County has an approximate population of 1,330,711 living in 966 square miles with a median household income of $43,816. If you are interested in learning more about the purchase of distressed properties, we have a series of articles about finding foreclosures.
Foreclosure Data Providers
Foreclosure.com
$40/mo
Notice of Default Notice of Trustee Sale Real Estate Owned
Dataquick 888-604-3282
$75/mo.
Notice of Default Notice of Trustee Sale Real Estate Owned
Redloc
$68/mo
Notice of Default Notice of Trustee Sale Real Estate Owned
Sacramento County
Hard Money Sources
iLoans
Internet provider of hard money
Incorporated Cities in Sacramento County
Foreclosures occur when payments aren’t made on a loan that is secured by real estate,
and the lender takes the security (real estate) because those payments have not been
made. Understanding the process, and what steps you need to take at different parts
of the process, is essential to successful investing in distressed property.
Property Values and Foreclosures
While it’s certainly possible to find properties selling for 50% of their potential
fixed-up value, most people will find it easier, and more efficient, to focus on
properties selling in the 65% to 80% of value range. Some of the value seasoned
investors seek when buying these homes can come from the normal terms of the loan, such as
very old loans that have been paid upon for many years. Some can come from price
appreciation in a “seller’s market” where homes are appreciating rapidly in
price. Some can come from the lender not wanting to deal with the property due to
damage or necessary repairs, where the lender will accept less than they are owed on the
property. So, how do you find these properties and what steps do you take?
Let’s start at the beginning.
The First Step
When payments aren’t being made on a loan secured by real estate, lenders will often
initiate default proceedings when the third payment is missed. The owner still has
possession and the right to sell or refinance the real estate, these properties will
usually be called a pre-foreclosure property by many investors. Since lenders cannot
release information about their distressed loans due to privacy concerns, and homeowners
often do not want to publicize their situation, you need an alternate way to find these
properties, along with owner contact information. That source of information is
your county recorder.
The County Recorder
Virtually all documents regarding real estate transactions are recorded and filed by
the county recorder, and because they are public documents, you can access and search
those documents. Most properties in default can be identified by the initial
foreclosure document, which in most states; will either be a Notice of Default or a Lis
Pendens. A Notice of Default, or NOD, is used in non-judicial states, while the Lis
Pendens is used in judicial states. Because a judicial foreclosure is a court
proceeding, you may have to search court records for the Lis Pendens instead of the
recorder’s office, local procedures vary throughout the US. Also keep in mind that
all Lis Pendens are not loan defaults, Lis Pendens means there is a legal action pending,
and many Lis Pendens will not be anything of interest to you.
In a simple world, you’d be able to find your target properties by asking your county
recorder for a list of all the NOD’s or Lis Pendens recorded that week, and they’d give
you the list, with names, addresses and phone numbers along with other information you
might want. It doesn’t work that way. But, since many recorders have
established searchable websites, you can do something similar. Use the online
recorders site to find properties by searching for those document types. That should
get you a list of owner names and document numbers. If you can’t view the actual
documents online, you’ll then have to physically go to the recorder’s office with your
list, search by owner name or document number, and look at the document (Notice of
Default, or Lis Pendens) which will reference the original loan, the property address and
the default amoun
|
This is a general guide only, laws change and you need to check your state statutes for
accurate, up to date procedures. Foreclosure type will most often be either
judicial or non-judicial, if you have a specific question about a state process, you can
ask it on the discussion board. Months to foreclose include the legal minimum
required and the probable time length once foreclosure has begun. Deficiency
judgments are available in some states if the lender loses money through the foreclosure
process, if it is not practical for the lender to enforce a judgment, it will be
listed. Homeowner redemption after foreclosure is possible in some states, the time
periods are listed where available.
|
|
STATE
|
TYPE OF
FORECLOSURE
|
MONTHS
TO FORECLOSE
MINIMUM/EXPECTED
|
DEFICIENCY
JUDGMENT
|
REDEMPTION
PERIOD
|
|
Alabama
|
Primarily
Non-Judicial
|
1/3
|
Possible and
Practical
|
12 Months
|
|
Alaska
|
Both
|
3/4
|
Not Practical
|
None
|
|
Arizona
|
Both
|
3/4
|
Not Practical
|
None
|
|
Arkansas
|
Both
|
4/5
|
Possible and
Practical
|
None
|
|
California
|
Primarily
Non-Judicial
|
4/4
|
Not Practical
|
None
|
|
Colorado
|
Both
|
2/5
|
Possible and
Practical
|
75 Days
|
|
Connecticut
|
Judicial/Strict
|
5/6
|
Possible and
Practical
|
None
|
|
Delaware
|
Judicial
|
3/7
|
Possible and
Practical
|
None
|
|
District of
Columbia
|
Non-Judicial
|
2/4
|
Possible and
Practical
|
None
|
|
Florida
|
Judicial
|
5/5
|
Possible and
Practical
|
None
|
|
Georgia
|
Primarily
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Hawaii
|
Primarily
Non-Judicial
|
3/4
|
Not Practical
|
None
|
|
Idaho
|
Non-Judicial
|
5/6
|
Possible and
Practical
|
None
|
|
Illinois
|
Judicial
|
7/10
|
Possible and
Practical
|
None
|
|
Indiana
|
Judicial
|
5/7
|
Possible and
Practical
|
3 Months
|
|
Iowa
|
Both
|
5/6
|
Not Practical
|
6 Months,
if judicial
|
|
Kansas
|
Judicial
|
4/4
|
Possible and
Practical
|
6-12 Months
|
|
Kentucky
|
Judicial
|
6/5
|
Possible and
Practical
|
None
|
|
Louisiana
|
Judicial
|
2/6
|
Possible and
Practical
|
None
|
|
Maine
|
Primarily Judicial
|
6/10
|
Possible and
Practical
|
None
|
|
Maryland
|
Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Massachusetts
|
Non-Judicial
|
3/4
|
Possible and
Practical
|
None
|
|
Michigan
|
Both
|
2/2
|
Possible and
Practical
|
6 Months
|
|
Minnesota
|
Both
|
2/3
|
Not Practical
|
6 Months
|
|
Mississippi
|
Primarily
Non-Judicial
|
2/3
|
Possible and
Practical
|
None
|
|
Missouri
|
Primarily
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Montana
|
Primarily
Non-Judicial
|
5/5
|
Not Practical
|
None
|
|
Nebraska
|
Judicial
|
5/6
|
Possible and
Practical
|
None
|
|
Nevada
|
Primarily
Non-Judicial
|
4/4
|
Possible and
Practical
|
None
|
|
New Hampshire
|
Primarily
Non-Judicial
|
2/3
|
Possible and
Practical
|
None
|
|
New Jersey
|
Judicial
|
3/10
|
Possible and
Practical
|
10 Days
|
|
New Mexico
|
Judicial
|
4/6
|
Possible and
Practical
|
None
|
|
New York
|
Judicial
|
4/8
|
Possible and
Practical
|
None
|
|
North Carolina
|
Non-Judicial
|
2/4
|
Possible and
Practical
|
None
|
|
North Dakota
|
Judicial
|
3/5
|
Not Possible
|
60 Days
|
|
Ohio
|
Judicial
|
5/7
|
Possible and
Practical
|
None
|
|
Oklahoma
|
Primarily Judicial
|
4/7
|
Possible and
Practical
|
None
|
|
Oregon
|
Non-Judicial
|
5/5
|
Not Practical
|
None
|
|
Pennsylvania
|
Judicial
|
3/9
|
Not Practical
|
None
|
|
Rhode Island
|
Both
|
2/3
|
Possible and
Practical
|
None
|
|
South Carolina
|
Judicial
|
6/6
|
Not Practical
|
None
|
|
Tennessee
|
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Texas
|
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Utah
|
Both
|
4/5
|
Possible and
Practical
|
None
|
|
Vermont
|
Both
|
7/10
|
Possible and
Practical
|
None
|
|
Virginia
|
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Washington
|
Non-Judicial
|
4/5
|
Not Practical
|
None
|
|
West Virginia
|
Non-Judicial
|
2/2
|
Possible and
Practical
|
None
|
|
Wisconsin
|
Judicial
|
varies/10
|
Not Practical
|
None
|
|
Wyoming
|
Non-Judicial
|
2/3
|
Possible and
Practical
|
3 Months
|
ASSISTANCE LINKS
FORECLOSURE RESOURCES FOR CONSUMERS
From the Federal Reserve Board
HOMEOWNERSHIP PRESERVATION FOUNDATION
Free counseling and planning for foreclosure prevention
NEIGHBORWORKS AMERICA
Local resources for assistance and foreclosure prevention
FREDDIE MAC AVOIDING FRAUD VIDEO
A short video on avoiding mortgage fraud
WORKOUTS FOR HOME LOANS
A link explaining the various types of workouts available from many lenders. You can also click on the following link to ask questions on our Foreclosures Discussion board.
HOW TO AVOID FORECLOSURE
Advice from HUD
DEPARTMENT OF VETERANS AFFAIRS
Advice when you have trouble making payments
CONSUMER CREDIT COUNSELING SERVICE
Non-profit help for establishing a direction or plan to avoid foreclosure.
PRO-BONO LEGAL ASSISTANCE
If you feel you need legal help and cannot afford it, this is the ABA directory state by state of legal providers doing pro-bono (without fee) work.
DEBT WORKOUT LINKS
What appears to be useful information and links for getting your financial house in order.
REINSTATEMENT SERVICES, INC.
Fee for service. Lender workout assistance for preventing foreclosure.
VOLUNTEER LAWYERS PROJECT
MAINE Pro-bono assistance
AVOID FORECLOSURE - FORECLOSURE HELP NATIONWIDE
Foreclosure prevention utilizing nationally recognized Mortgage Assistance Programs. Foreclosure help without Bankruptcy. Keep your home
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