Foreclosure process made simple

Foreclosure
Recording of any action against property, in County Recorder’s Office, becomes public record. Usually investors, attorneys, loan officers or Realtors will try to help homeowners get out of this situation.

Time Process
35-days Defaulting on a loan for over 30 days gets a Notice of Default (NOD) letter from lender, the notice will be sent by regular mail and by certified mail. lender has the right to ask for the loan balance to be paid in full. its the law but lenders rarely do this. They make money by collecting interest. Home owner can try to refinance or sell the house with "short sale" but requires lenders approval. 35 to 90 days late charges & monthly payments will be added to your outstanding loan balance & possibly the paperwork cost of $1500.

90-days & beyond, Notice of trustee sale (NOS), Lender notifies the homeowner & files a notice with county recorder, it is common for auction to be postponed, as some homeowners tries to pay off the loan. They post the sale date in a public place (City Hall) and publish the date in a newspaper for three weeks prior to the sales date.

111-Days Approximate the Foreclosure date is set, The Foreclosure Trustee Sale typically occurs on the steps of county courthouse in which the property is located, the opening bid is usually equal to outstanding loan balance plus accrued interest, additional fees including attorney's fees, if no bid, the property goes to the lender as REO or Real Estate Owned. This occurs usually when the property worth less than amount owed to the lender.

The highest bidder must pay in cash, usually with a deposit and the remainder within 24 hours, after which the bidder gets the trustee's deed, all junior liens other than property taxes are wiped out, the liens priority's are determined by the date of recording, Bank REO typically has clean titles.

Because sales are all-cash & "as is" the vast majority of homes revert to the lender @ auction. after the court auction, a trustee's deed is filed with county signifying the house foreclosed & belong to the lender not homeowner.