Foreclosures
Foreclosure Timeline
In California, lenders who intend to foreclose on a property when the loan is delinquent typically use the nonjudicial foreclosure process also known as a trustee’s sale. This process is less expensive for the lender than the judicial foreclosure process. A nonjudicial foreclosure doesn’t require a court proceeding and, thus, is a more expeditious process. From here on, whenever the term “foreclosure” is used, it is referring to a trustee’s sale.
With foreclosures being so prevalent and with so many homeowners being at risk of losing their homes to foreclosure, REALTORS® need to be able to assess whether they have sufficient time to market the property and close escrow before the property is lost to foreclosure. Therefore, this article provides a foreclosure timeline to assist REALTORS® in their assessment of the time remaining before a possible foreclosure occurs.
Several recent laws have impacted the foreclosure timeline. The California legislature added an additional 90-day extension period after the recordation of the Notice of Default (NOD)—California Civil Code Sections 2923.52-2923.55. However, those statutes were repealed effective Jan. 1, 2011.
Another law which expires Jan. 1, 2013—California Civil Code Section 2923.5–affects the foreclosure timeline but only for loans made between Jan. 1, 2003 and Dec. 31, 2007 on residential one-to-four unit owner-occupied properties. This law adds a 30-day borrower contact period before the lender may record the NOD.
In the counting of days in the chart below, please consider that if the final day of performance falls on a Saturday, Sunday, or holiday, then the day for performance becomes the next business day. “Business days” are defined as all days other than Saturday, Sunday, and holidays. See California Civil Code Sections 7.1, 9, and 10 for more details.
In case you are already falling behind on your mortage, here is a foreclosure Timeline you can click on for details.
FORECLOSURE TIMELINE FOR LENDERS
*** We strongly advise you to consult with a Tax Accountant and a Real Estate Attorney for tax and legal advice as we are neither. ***
