Foreclosure
Process:
"Foreclosure
is the procedure for enforcing a lender rights once the
obligation secured by a Deed of Trust is in
Default".
Initial
Steps:
Default Period.
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The
Note, Deed of Trust and information on the default
are forwarded to County Records Research.
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The
notice of default and other necessary documents are
prepared for your signature.
-
The
notice of default is then recorded and the
foreclosure time line begins.
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A
Trustee Sale Guarantee (TSG) is ordered from a title
company.
-
The
required 10 day and one month legal mailings are
sent to the borrower and the junior lien holders.
-
If the
loan has not been reinstated or paid off within the
three-month default period, the lender then
authorizes the next step in the foreclosure
proceedings.
Publication
Period and Trustee's Sale.
-
County
Records Research will prepare, record and arrange to
post the Notice of Trustees Sale.
-
The
Notice of Trustee's Sale must be published once a
week for three consecutive weeks in a newspaper of
general circulation near the property location.
-
The
borrower or junior lienholder may reinstate the loan
at any time up to five business days before the sale
date.
-
If the
loan has not been reinstated prior to five business
days before the sale, the beneficiary may demand
that the entire unpaid obligation be paid in full
during that five-day period.
-
The
trustees sale is conducted.
-
A
Trustee's Deed is prepared for the lender or outside
bidder, then recorded.
To Cure a
Default:
Many
foreclosure proceedings are reinstated during this
3-month default five period. The borrower or anyone with
a subsequent interest in the property may pay the
beneficiary or his authorized agent the amount necessary
to cure the default. This amount will include delinquent
payments, and advances and the fees and costs associated
with filing the notice of default and other necessary
documents. Always call County Records Research prior to
accepting any money to verify the total costs to cure
the default. You must always notify us immediately upon
receipt of payment. Acceptance of any partial
reinstatement may void the foreclosure proceedings. When
the default is cured, a Notice of Rescission will be
prepared so that it can be signed by the beneficiary.
When the Notice of Rescission is recorded it cancels the
Notice of Default.
Proceeding
With The Trustee Sale:
If the
default is not cured within the three month default
period, the next step will be to prepare, post, record
and publish the Notice of Trustees Sale.
An instruction form which is referred to as the
"authorization to publish" is sent to the
beneficiary. This letter authorizes publication of the
Notice of Trustees Sale. A copy of the notice is
published in a newspaper of general circulation once a
week or three consecutive weeks. The notice is also
posted on the property and recorded at the County
Recorders office.
If the property owner wants to reinstate the loan during
the publication period, the beneficiary must allow him /
her to do so up to five business days prior to the date
of sale, unless the loan is all due and payable pursuit
to the terms of the note. The beneficiary will also sign
a "Bid Construction Letter" which will
instruct County Records Research to make the opening bid
on the beneficiary's behalf. This bid will usually be
for the total amount of the debt secured by the Deed of
Trust plus any advances, trustees fees and expenses. The
beneficiary may instruct County Records Research to make
a deficiency bid. A deficiency bid is one which is less
that the amount of the debt and is used when the
beneficiary does not want the property back and / or the
value of the property is less then the debt due on the
note.
The Trustee
Sale:
The date of
the Trustees Sale is established at the time of the
Notice
of Trustees Sale is prepared. The Trustee's Sale is a
public auction sale and is open to all qualified
bidders. Bids are made orally and everyone who wants to
bid must first qualify with the auctioneer by showing
the amount and type of money intended to be used in the
event of a successful bid. The Notice of Trustee's Sale
designates the type of funds required, usually cash,
cashier's check or bank check. The acceptance of the bid
is not final until the total amount is paid to the
auctioneer by the highest bidder. The beneficiary does
not need any money to make the opening bid. However, if
the lender plans to bid over the opening bid he must
have enough money to pay the difference between the
amount of his balance due in his final bid. The sale is
complete with the highest bidder is received an the
auctioneer accept it, declaring the property sold.
What
Happens if it Doesn't Sale or the Sale is Postponed:
There are
many reasons why a Trustee's Sale may be postponed. As
an example; a bankruptcy or other legal proceedings may
prevent County Records Research from conducting the sale
on the scheduled date. If there is a bankruptcy or
litigation, it may be necessary for the beneficiary to
employ the services of an attorney. County Records
Research can assist you if you find it necessary to
contact an attorney.
The beneficiary is entitled to three separate
postponements for their own reasons. The beneficiary and
the property owner can agree on as many postponements as
they wish. If there is a bankruptcy or legal proceeding,
the sale can be postponed as many times as necessary to
obtain a court order to allow the sale to take place. If
a sale is postponed for any reason, an announcement must
be made at the sale location as to the reason for the
postponement as well as the next sale date.
If the postponed sale date is for a period of time that
exceeds five business days, the right of reinstatement
is revived and continues until five business days prior
to the newest sale date.
After the
Trustee Sale:
A Trustees
Deed Upon Sale is prepared after the sale is completed.
This Deed transfers title to the successful bidder or
beneficiary. The Deed must be signed by the Trustee,
acknowledged by a notary public and recorded. After the
Deed has been recorded it is forwarded to the party who
purchased the property at the Trustees Sale auction.
There is no right of redemption after a Trustee's Sale
and the successful bidder is entitled to immediate
possession. The one exception is the right of federal
government to redeem, with full payoff to the successful
bidder, if a federal tax lien has been recorded against
the property and is subsequent to the deed of trust
being foreclosed. IRS redemption rights elapse four
months after the Trustees Sale.
Contact
Ed Portillo for a free telephone or email consultation,
chances are excellent that I may be able to help you!
CONTACT ME to
begin working TODAY!
Business
phone: (916) 781-0801
Mobile phone: (916) 613-9902
We
have offices in Sacramento and Roseville, with active
agents throughout Northern California.
Our
main office is located at 720 Sunrise Ave. Suite #204B
We
can be reached at 916-781-0801
Contact Ed Portillo
for a free telephone or office consultation, chances are
excellent that I may be able to help you! CONTACT
ME to begin working TODAY!
Business
phone: (916) 781-0801
Mobile phone: (916) 613-9902
We
have offices in Sacramento and Roseville, with active
agents throughout Northern California.
Our
main office is located at 720 Sunrise Ave. Suite #204B
We
can be reached at 916-781-0801
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