What is a Foreclosure?

"Foreclosure" is a common term used to descibe a trustee's sale proceeding- the correct terminology to use when describing the procedure for enforcing a lender's rights once an obligation secured by a deed of trust is in default.

The statute governing the processing of a Non-Judicial Foreclosure in California can be found in section 2924 of the California Civil Code.

Pre-Publication Period:

• The Non-Judicial Foreclosure process commences upon the recording of a Notice of Default.
• The Notice of Default must be mailed to the Trustor (Borrower) and all parties who have recorded a Request for Notice within ten days of recording the Notice of Default.
• All other parties are entitled to notice within one (1) month of recording of the Notice of Default.

Publication Period:

• Three (3) months after the Notice of Default is recorded a Notice of Sale will be published, once a week for three consecutive weeks in a newspaper of general circulation near the location of the property, with sale normally being scheduled during the week after the third publication. A Notice of Sale will also be Posted on the property and at a public place, not less than, 20 days prior to the Sale Date and Recorded, not less than 20 days prior to the Sale Date.
• Copies of the Notice of Sale are mailed to all entitled parties.
• Unless the Note is all due and payable the borrower still has the right to reinstate the obligation any time up to five business days before the scheduled sale date.
• If the local has not been reinstated prior to the five business-day period, the beneficiary can demand the entire unpaid obligation be paid in full.
• If the sale is postponed, the right to reinstate may be revived.

Trustee's Sale

• The Trustee's Sale is a public auction. All bidders must qualify prior to the auction and must have certified funds (Cashier's Check) at the sale site.
• Once the Trustee's Sale has concluded a Trustee's Deed is issued to the successful bidder.
• The average time for completion of a California Non-Judicial Foreclosure process is approximately four (4) months from the date the Notice of Default is recorded to the date of the Trustee's Sale. Certain occurences may serve to delay the Non-Judicial Foreclosure (e.g. Bankruptcy filing, Temporary Restraining Order, Mutual Agreement between the parties involved).