Foreclosure means that the individual or institution who holds the lien on your property is enforcing the lien by setting your home up for public auction to raise money to pay off the lien. In California there’s a four- to five-month delay between the time when the foreclosure process is initiated and when the foreclosure auction is actually held. During this time you may want to sell your house, redeem the mortgage by paying it off in full or in part, or only use the opportunity to find a new place to reside.
Default
A lienholder can initiate the foreclosure process any time after you default under the appropriate secured by the lien. By way of example, if you take out a mortgage loan to purchase your house and then become more than 30 days late on your monthly obligations, you are in default. Your lender can then apply the mortgage lien by sending you a”Notice of Default,” which starts the foreclosure process. Other lienholders, such as someone who has obtained a judgment against you personally, may also initiate foreclosure after you default. The foreclosing lienholder must record the Notice of Default with the County Recorder, send a copy of this Notice of Default to you along with other people who have a valid interest in your property, then wait at least three months before taking any extra foreclosure steps.
Redemption Period
Even after a lienholder starts the foreclosure process by sending the Notice of Default, you still have the right to redeem the lien by paying off the entire sum due on the obligation. By way of example, if you are three weeks late on your mortgage, you can pay a sum equal to the total that’s late to bring the mortgage current. You can also have to pay late charges, default interest, and any of the creditor’s costs incurred in initiating the foreclosure process. Some reason that a lienholder must wait at least three months before taking further action after documenting the Notice of Default is to provide the homeowner an opportunity to come up with the money to redeem the mortgage and keep the house.
Notice of Trustee’s Sale
The last step in the pre-foreclosure auction process is the book of a”Notice of Trustee’s Sale.” The lender has to publish this notice in the newspaper, on a state website, and on the property for at least 20 days before the date of this purchase. The note must include the date, time and location where the sale will happen. Additionally, the notice must inform its readers that any part of the public is welcome to take part in the public auction. The trustee will then hold the foreclosure sale as advertised in the note.