How does the basic foreclosure process
process is generally commenced when the borrower becomes delinquent. Delinquent status depends on the terms of
the Note, the lender's internal policies and the requirements of any investor. Generally, the foreclosure is
commenced when a loan becomes three months delinquent.
process generally begins by the holder of the Note appointing a trustee to file a Notice of Default with the
county recorder of the county where the property is located. From the date of the filing of the notice of
default, the borrower has 3 months to reinstate or payoff the loan. At the conclusion of the 3 month
reinstatement period, if the loan has not been brought current, a foreclosure sale is set. A Notice of
Trustee's Sale is sent to the borrowers and posted on the property.
It is also posted at
the County Recorder's Office of the county where the property is located and published in a newspaper having
general circulation in the county. The actual foreclosure sale is held at the time and place specified on the
Notice of Trustee's Sale, generally an active county courthouse of the county where the property is located. The
trustee appointed by the note holder, or an attorney representing the trustee, conducts the foreclosure
sale. The minimum bid on the property is set by
the lender foreclosing.
FAQ View all Legal Questions Answered