The Foreclosure Timeline
Home-loan foreclosure procedures are governed by state law. If you cannot afford to pay legal fees or your mortgage, you may have the option to enter into a short sale. Nevertheless, getting the best legal advice could be the difference between losing your house or getting a large cash for keys settlement against most of the big banks we have filed cases against.
• Lender can record a Notice of Default in the county where your home is located, at least 30 days after contacting you for the foreclosure avoidance assessment.
• This marks the beginning of the formal and public foreclosure process.
• The lender sends you a copy of this notice by certified mail within 10 business days of recording it.
• You then have 90 days from the date that the Notice of Default is recorded to “cure” (fix, usually by paying what is owed) the default.
• If you do not pay what you owe, a Notice of Sale is recorded (at least 90 days after the Notice of Default is recorded).
• The Notice of Sale states that the trustee will sell your home at auction in 21 days.
Notice of Trustee’s Sale
If the mortgage borrowers or current homeowners don’t cure the default as outlined in the Notice of Default, the foreclosure trustee will prepare and record a Notice of Trustee’s Sale. The Notice of Trustee’s Sale is published in a newspaper local to the property being foreclosed, and it also is mailed to the borrowers of record and posted on the subject property. Tenants of property posted with a Notice of Trustee’s Sale must be prepared to vacate the property prior to the date of the trustee’s sale because they may be subject to eviction.
The trustee’s sale is a public auction and the property is sold to the winning bidder. The trustee may require bidders to pay the full bid amount in cash or cashier’s check.
It also guarantees struggling homeowners a single point of contact at their lender with knowledge of their loan and direct access to decision makers, and imposes civil penalties on fraudulently signed mortgage documents. The new laws also ban so-called robo-signing — the improper or faulty processing of foreclosure documents.
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