The California Foreclosure Process & Timeline

By
Education & Training with Executive Director of Education at eXp Realty

The following time-line is applicable for California Non-Judicial Foreclosures under a deed of trust. Foreclosures begin when the Trustor (borrower) does not make the monthly payment to the Beneficiary (Lender).

The first missed payment is a technical default, but in practical terms, most Beneficiaries do not begin the process until the third payment is missed.

If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through forbearance or other loss mitigation measures, the Beneficiary will instruct the Trustee to begin foreclosure proceedings.


The Non - Judicial Foreclosure Timeline - California

Day 1

Record "Notice of Default"

Within 10 Days

Within 10 days of recording the Notice of Default, copies of the recorded document (NOD) are mailed to the Trustor(s) and anyone requesting Special Notice.

Within 1 Month

Notice of Default is mailed to parties, pursuant to California Civil Code 2924(c)

After 3 Months

At the end of 3-month, prepublication period, the Lender can then instruct the Trustee to set a sale date.

25 Days Prior to Sale Date

Notice to the IRS must be given, if required

At Least 20 Days Prior to Sale Date

Publish Notice of Sale, post Notice of Sale, mail Notice of Sale

Within 10 Days from first publication of Notice of Sale

Send beneficiary request for property directions

14 Days Prior to Sale

Record Notice of Trustee's Sale

5 Business Days Before Sale Date

Right to Reinstate expires

Sale Date

Property is sold to highest bidder


This information is being provided to try and help educate individuals who may be experiencing a possible foreclosure or potential foreclosure proceeding. Of course you should always seek advice from an attorney when able to do so. In the event you can't make your mortgage payment, or you suffer a hardship, contact your lender, bank, or mortgage company right away. Try and prevent this process from happening to you if possible. There are usually other options available if you take action in a timely manner. Don't wait until you are behind in your payments, or your home is in default to seek councel or get advice from a real estate professional or real estate attorney. Sometimes just knowing the right thing to do, or who to call can make the difference between keeping and losing your home in foreclosure.


The information in this chart is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been compiled from sources deemed reliable, please note that individual situations can vary and therefore, please consult your attorney for specific advice and legal counsel.

If you or someone you know is having financial difficulty with their mortgage or loan payments, let them know about this post and their options. The best way to avoid a foreclosure, is by not waiting till the last minute to take action. A foreclosure will have both tax and credit consequences that you should try to avoid at all costs.

Related Topics: The Short Sale
The Escrow Closing Procedures around the United States
Short Sales
Easy Explanation of Foreclosures and Short Sales
Foreclosure Filings

How To Avoid Foreclosure
California Foreclosure Procedure

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This post updated 7/13/07
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Ambassador
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876
Thanks John for the update, the mention, and you're welcome for the referral.  The best thanks is always a referral back, but you know that already...Have a great night!!
Jul 29, 2007 05:59 PM #42
Anonymous
Andrew T Clemente of Countrywide
Great Post!!  I am getting Experienced Realtors local to me approved to sell our REOs.  Also assisting in streamlining the short-sale process.  Hopefully solutions will work out prior to either a short-sale or foreclosure, but once it does happen it helps the seller (client or CHL) to make it as simple as possible.
Aug 23, 2007 02:47 PM #43
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Andrew - thank you for stopping by to post your comment.  I know Countrywide has been in the media a lot lately and I think you guys are doing some great things in the industry right now. If you need agents in the Contra Costa and Solano areas to assist Countrywide with some REO's or short sales, feel free to contact me as a resource anytime.  I would be happy to help.  Just email me or give a call anytime. Thanks again for your comment! B-)
Aug 23, 2007 04:07 PM #44
Anonymous
Anonymous
Hi, I was wondering, we have a investment ( rental ) property, it used to be our primary residence, We are having a hard time with renters and the difference in the mortgage. We are getting ready to let it foreclose.  We haven't been late or behind ever on any payments.  But, we want to know what will happen after it forecloses.  We have another rental prop. and our new primary residence, will this affect them, can we be sued.  We desperatly need answers and I can't seen to find anything on the web. We live in CA
Aug 28, 2007 07:01 AM #45
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Resident of CA

I understand your question and can also relate to your delicate situation.  This is your investment property and personal information regarding your mortgage.  Feel free to contact me outside of this blog regarding more information, I respect your privacy and confidentiality.  I will certainly do my best to direct you to the right resources. Thanks! 707 888-6299 or bandersohn@firstam.com anytime.

Aug 28, 2007 06:18 PM #46
Rainer
31,469
Keith Stoller
Keith Stoller Tax & Business Solutions - Bakersfield, CA
Fantastic summary and thank you for it. A lot of folks in my region are chomping at the bit waiting to take advantage of the foreclosure market and sales on the old courthouse steps.  I've copied the summary and forwarded it to a couple friends.
Oct 11, 2007 06:15 AM #47
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Keith - glad you found this to be useful.  Hopefully this will help your friends understand the timeline and foreclosure process.  Thanks for commenting, best of luck to you.  :-)
Oct 11, 2007 05:05 PM #48
Anonymous
Rob
The house I am renting is now 2 days away from being 90 days in default. I am supposed to pay rent on the first of December but don't think I should with the house getting foreclosed. Do you think I should pay it and take the hit of the house getting foreclosed and losing Decembers rent money and losing my security deposit? From my understanding he can walk away with my security deposit as well... If you have any information for me and what i should be concerned about that would be wonderful! Thanks!!
Nov 27, 2007 10:08 AM #49
Anonymous
Rob
The house I am renting is now 2 days away from being 90 days in default. I am supposed to pay rent on the first of December but don't think I should with the house getting foreclosed. Do you think I should pay it and take the hit of the house getting foreclosed and losing Decembers rent money and losing my security deposit? From my understanding he can walk away with my security deposit as well... If you have any information for me and what i should be concerned about that would be wonderful! Thanks!!
Nov 27, 2007 10:08 AM #50
Rainmaker
316,789
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker
Oh Brad, Once againI love your post.  Everything you do is helpful.  I am taking a course on Short sales.  I have not had one yet but just in case.  There aren't too many foreclosures in this neck of the woods.  Have your best day ever! (night now)
Nov 27, 2007 10:37 AM #51
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Rob - if you owe rent, pay the rent!  If you need to move, then move!  Don't add insult to injury of your landlord losing their home in foreclosure.  My advice is to always "DO THE RIGHT THING", one way or another, all that goes around. comes around.  I guess the real question here becomes more of a moral and ethical one? 

How would you feel if this was "your" home, and your renter decided not to pay rent. Especially during a time you were possibly losing the home, and Christmas time to boot!  What if your paying the rent made the difference of foreclosure or not for the owner?  My advice again,  ALWAYS do the right thing, and make the right choices in life!  I am confident that you will, someone upstairs is always watching and taking note of your decisions and actions  :-)

Nov 28, 2007 01:11 AM #52
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Pat - I am happy to hear you don't have many foreclosures in your area.  It's a sad thing when this happens to someone who worked so hard to become a homeowner and provide for their family.  I am here to help all I can and try to make a difference, even if it is just a small one.  Make it a great day Pat, and enjoy all that you've been blessed with, that including things and people!  :-)
Nov 28, 2007 01:22 AM #53
Rainer
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Kimberlee Morgan
Windermere Real Estate - Indian Wells, CA
Wow!  This is exactly what I was looking for!  Thanks so much for the great article. 
Mar 19, 2008 07:33 AM #54
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
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Kimberlee - I'm glad this helps, I'm sad if it's applicable to you or anyone you know.  Thank you for commenting on it. :-)
Mar 21, 2008 02:32 AM #55
Rainer
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Kimberlee Morgan
Windermere Real Estate - Indian Wells, CA
Hi Brad, thankfully it is not me ...however a few friends have recently lost their homes and I was at a loss on information to give them.  Will keep this page so i can refer to it in the future  :)   Have a good one!
Mar 21, 2008 02:42 AM #56
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876
Kimberlee - I am so sorry to hear that about your friends.  I too have witnessed friends and neighbors going through this most unfortunate circumstance.  I always feel helpless and wish there were more I could do to help.  This post just seemed to be contributing in some small way to getting information out that may help someone, somewhere, somehow.  Glad to hear that you are not the one experiencing this epidemic right now!  :-)
Mar 21, 2008 03:40 AM #57
Rainer
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Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC

An excellent post that should really be helpful to many Californians. 

Dec 01, 2008 11:05 PM #107
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Brad Andersohn
Executive Director of Education at eXp Realty - Fairfield, CA
ActiveBrad - 707.646.1876

Thanks Diane - I can't tell you how many calls and contacts this post has generated.  I am confident that is HAS helped many in understanding the Non-Judicial California Foreclosure timeline and process.  I hope it helps many more too.  :-)

Dec 02, 2008 03:11 AM #110
Rainmaker
885,451
Maureen Megowan
Remax Estate Properties - - Palos Verdes Estates, CA
Palos Verdes Real Estate Blog

There is absolutely NO redemption period after the Trustee's sale, except for the exceptions listed below. A non-judicial foreclosing lender is also forbidden to seek a deficiency judgment against a debtor if proceeds from the sale are insufficient to cover the indebtedness and all associated costs.

In the event of a judicial foreclosure (often when foreclosing over a court-awarded judgment, almost never when foreclosing over a loan default), there is a redemption period of . . .

(a) Three months if the proceeds of the sale is of sufficient value to cover the indebtedness and all associated costs;
(b) One year if the sale proceeds are insufficient. .

Exception #1: If there is an IRS lien attached to the subject property, the IRS has an automatic 90 day right of redemption regardless of the kind of foreclosure (judicial or non-judicial).

Exception #2: It appears that homeowner associations that foreclose non-judicially for an amount equal to or exceeding $1800 will also create a 90-day right of redemption. (Associations may no longer foreclose for amounts less than $1800)

In addition, I believe that there is a new law that requires lenders to wait an additional 30 days to begin the foreclosure process and must attempt to contact their borrowers to try and work out a solution for loans made between January 1, 2003 and December 31, 2007.

Apr 13, 2010 04:19 PM #135
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Brad Andersohn
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Maureen - great update, thanks.

Apr 13, 2010 04:39 PM #137
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