An Overview of the Foreclosure Process

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.

“The foreclosure process can be difficult and time-consuming—but it doesn’t have to be.”

The lender must accept the Trustor’s reinstatement if it is tendered more than 5 days before the sale. Within 5 days of the sale the lender may refuse reinstatement and demand full payment. Lenders will often allow reinstatement during the Publication Period and a Notice of Recession will be prepared and filed by MGR accordingly.

MGR will typically bill for Phase 2 after the Auction takes place. If the original sale gets postponed for more than 30 days, MGR will then bill the lender for Phase 2.

Phase 3: Obtaining Possession of the Property

The foreclosure sale takes place at a designated public location within the county where the property is located. Proceeds from the sale are disbursed to all lien holders in order of the priority of their recorded trust deeds.

If the sale auction is unsuccessful at attaining a buyer at the minimum bid price then the property reverts back to the lender. MGR then prepares the Trustees Deed Upon Sale and files same with the County within 10 days after the auction. MGR will typically bill for Phase 2 and Phase 3 within 3 to 5 business days after the sale.

Foreclosure Fees

Please note that there are other fees associated with a non-judicial foreclosure, such as recording, mailing, posting/publishing, and title fees. For questions about those fees or anything else related to the foreclosure process, please feel free to contact us.

The Right Trustee

The key to ensuring the success of your foreclosure is working with someone who understands the process and who is qualified to get the job done correctly and efficiently. As seasoned experts with 25 years of experience from every level of the real estate industry, we are uniquely suited to handling the recover process for you no matter the situation.

We aren’t just pushing papers and sending notices. We’re partnering with you by working for you to make the process as easy as 1-2-3. Contact us today to take the foreclosure process of your hands and put it in ours.

Take the collection process off your hands and put it in ours.

We make the foreclosure recovery process easy, seamless, and efficient. Contact us today and let us do the heavy lifting for you.