When do foreclosure proceedings begin in California?
Question:
Answer:
When foreclosure proceedings begin in California depends on the lender. In theory you are in default if you are one day behind in your payment, however, most lenders will not start foreclosure procedings at this point.
I have known some lenders to go as long as 6 months to a year before they place your property in foreclosure. Some of the governement loans such as VA or FHA might go this long.
They will send you a series of letters indicating that you are late. After about week or two of these type letters they will send you threatening letters stating they intend to place you in foreclosure.
Now once this has been done and many many telephone calls the lender will eventually place your house in foreclosure, by going to the county court and filing a Notice Of Default (NOD) placing the property that you are in in foreclosure.
They are required to give you a notice, so they will mail you a copy by certified mail. They will, in some, instances hire a firm to deliver a copy to you in person.
This NOD will tell you that you have 90 days to bring your loan current, after which your property will be sold on a certain date.
During this 90 day period you can do
#1 Bring the loan current, this will cure the foreclosure
#2. Make a deal with the lender to make up the back payments while keeping the payments current. This will cure the foreclosure.
#3. Sell the property to pay off the loan, this will cure the foreclosure.
#4. Sign a deed-in-lieu of foreclosure
Failure to do any of the above will cause the lender to record another document at the county recording office called a Notice of Sell. Now you have 20 days to cure the foreclosure
At this point you will not normally make a deal with you, though come will, but don't bank on it.
The only thing you can do now is pay the loan/mortgage off completely to keep your property.
Failure on your part to pay off the loan/mortgage will result in the property being auctioned off at a public place. Once sold you are no longer the owner.
If the property is not sold at the auction it reverts back to the lender that has the mortgage.
I hope this has been of some use to you, good luck.
"FIGHT ON"
Like Skip said it really does depend on the lender's methods used to foreclose their notes and proceed against you according to their mortgage terms. However regardless of their internal methods used all lenders must abide by the laws both federal and state when foreclosing. For example if you have a federal guaranteed program there are rules as explained in this link; Foreclosure requirement by HUD guaranteed loans: http://www.hudclips.org/sub_nonhud/cgi/n...
In addition to those rules there are state required procedures that must be followed in your state and couny such procedures are explained in the following link: Private company explanations of foreclosures: http://www.tdsf.com/forefaq.htm#22... or by going to the Civil code at http://www.leginfo.ca.gov/cgi-bin/calawq...
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