The foreclosure process is set by California law. A typical foreclosure is completed in approximately four months, but it may be extended by Bankruptcy Court filing or litigation. This summary is meant as an informational overview and is not a contract.

1. REINSTATEMENT PERIOD (three months):
This begins when we file the Notice of Default, or NOD. During this three month period, the owner of the property or any junior lien holder can reinstate the loan by making payments to bring the loan up-to-date, plus any foreclosure fees and costs. The reinstatement right (provided the note isn’t all due) continues up to five business days before the Trustee Sale.

2. PUBLICATION PERIOD (approximately one month):
If the three month period expires without reinstatement, we prepare the Notice of Sale, which must be published publicly once a week for three consecutive weeks. The Trustee Sale (another word for auction) is set for no less than 21 days from the date of first publication.

3. TRUSTEE SALE:
The Trustee Sale is conducted as a public auction in which the highest bid is sought. The opening bid is what is owed on the Trust Deed, plus interest, advances and all foreclosure costs. Anyone wishing to bid must have cash or cashiers check in the amount of the bid. The Trustee's Deed goes to the highest bidder, who then assumes title to the property subject to all senior encumbrances and unpaid property taxes.
If there is no bidding at the sale, the title of the property goes back to the Beneficiary (the holder of the Trust Deed who initiated foreclosure).
All costs and fees must be paid before Deed can be recorded.
If the property is occupied, then eviction proceedings are necessary. We can refer you to eviction attorneys.
Overbids are distributed to lien holders in order of seniority, then to the property owner.