The foreclosure process can be difficult and time-consuming—but it doesn’t have to be. As experienced trustees with expert knowledge of foreclosure recovery, we know how to make the process as seamless and efficient as possible.
Below is an overview of the foreclosure process. However, you can always skip the heavy reading and simply contact us to get your foreclosure recovery started. It’s that easy.
Phase 1: Notice of Default Process in California
Foreclosure proceedings are initiated with the recording of a Notice of Default (NOD) and Substitution of Trustee. This filing gives formal notice to the borrower and the public that the loan is now in default.
The actual recording of the NOD takes place at the County Recorder’s Office in the county in which the property is located. The Trustor (borrower)r) has three months from recordation of the Notice of Default to reinstate the loan (to make the loan current by clearing all payments in arrears, any late charges, or other deficiencies), or payoff the loan. The law requires that the lender accept the Trustor’s reinstatement payment or payoff during this three month period.
There are two mandatory certified mailings after the NOD is filed. The first noticing is sent within 10-days after the NOD is filed and the other certified mailing is within 30-days after the NOD is filed.
MGR will typically bill the lender for Phase 1 after the 30-day mailings are completed.
Phase 2: Notice of Trustee’s Sale
If the Trustor does not reinstate or payoff the loan within three months, then the lender will instruct MGR to record, publish and post a Notice of Trustee’s Sale (NOS). This published and posted Notice states that the subject property will be sold to the highest bidder after 21 days from publication of said Notice. If the lender is working with the Trustor on a workout plan or the Trustor appears to being making best efforts to reinstate or payoff the loan, the lender can opt to delay the scheduling of the sale for a reasonable period of time.