Foreclosures begin with the Trustor (borrower) not making the monthly payments to the Beneficiary (Lender). The first missed payment is technically a default, but in practical terms, most Beneficiaries do not begin the actual Foreclosure process until the third or more payment is missed and when the market is down and Foreclosures are up, such as our current market often lenders wait even longer before starting the process. If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through Forbearance or other remedies, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings.
The Foreclosure process officially starts on the day the Notice of Default or NOD is filed.
Within 10 business days
Notice of Default is mailed and published
After 90 days
Lender files Notice of Trustee Sale and sets sale date, usually about 30 days after the NOD is filed.
25 days before sale date
Send notice of sale to I.R.S. (when necessary)
Within 10 days from 1st publication
Send beneficiary request for property directions
14 days before sale date
Record Notice of Sale
5 business days before sale date
Expiration of right to re-instate the loan
Lender attempts to sell the home at a public auction