California Foreclosure Timeline

Delinquency Period

o    2 months - Current owner must be at least two months behind on the mortgage (1st or 2nd) before the lender can record a Notice of Default (NOD). It will not always be exactly two months from when you become delinquent on your mortgage, but the lender may begin the foreclosure process by directing the Trustee to record an NOD at any time from this point forward.

Notice of Default Period

o    3 months – The NOD period lasts a minimum of three months. During this time the borrower will be contacted by the lender in an effort to resolve the situation. At the end of the three months the lender will likely direct the trustee to publish a notice of Trustee Sale.

Trustee Sale Period

o    20 days – The actual Trustee’s Sale can occur no sooner than 20 days after the Notice of Trustee’s Sale is posted on the property, published in a publication of general circulation and mailed to the borrower.

*Minimum period from initial default until property has been foreclosed upon and title transferred to lender or bidder at auction is five months and 20 days*

Trustee's Deed

o    If the property goes to sale on the date published by the Trustee, the high bidder action, or the foreclosing lien holder gain title to the property with a Trustee's Deed.

*calculated from the end of the period for which the last full mortgage payment was made by borrower and accepted by lender.

NOTES:

1. Borrower has the right to reinstate the loan up to five (5) days prior to the Trustee Sale date.
2. The Internal Revenue Service (IRS) has up to 120 days after the Foreclosure sale to redeem the property.
3. Upon the issuance of a Trustee Deed junior mortgages are generally extinguished.
4. If a junior lean holder is foreclosing, the lender or acquirer through auctions receives a Trustee Deed and holds title subject to the senior lien(s).