Time periods of a forclosure

Good day to you! As I look out my window The huge pile of snow in front of my house continues to block the view of the street. Yesterday, all day dump trucks and a loader were removing snow in Fox Farm; however, they did not reach my house. I hope today will be the day. It is to the point that I can hardly back out of my driveway without hitting a snow pile behind me. Then when I drive forward I hit another snow pile in front of me own house. I have to Jockey a few times before I can actually drive forward down the street and be on my way! I hear more snow is expected tomorrow!

Let's talk about foreclosures. That word is certainly on many folks minds lately. The foreclosure period lasts about 4 months give or take a few days. You are actually in default the day you stop making payments. In California you must be 90 days in arrears before the foreclosure proceeding can begin. Typically, the bank will wait the 90 days and then file a Notice of Default.

The lender files the notice with the county recorder's office and posts the notice on the property. Once the notice of default has been filed the law says that the lender cannot effect a sale of the property prior to three months or 90 days after the Notice of Default has been filed.

After the 90 days are up the lender will file a "Notice of Trustee Sale" with the county recorder's office. The planned sale is referred to as the "Trustee Sale" and can't occur until at least 20 days after the Trustee Sale notice is filed.

The lender will usually set the Trustee Sale for the 21st day after the 90 days are up. The sale would be held on the court house steps and either an individual will buy the property or the bank will purchase the property. Normally, the lender buys the property.

In the loan documents that you originally signed you gave permission to the lender to foreclose on the property if you defaulted. Once you missed a payment you have defaulted! In the above circumstances it takes about 110 days or more to complete the foreclosure after the original 90 days have elapsed. Some bank wait longer before they file the Notice of Default. Many lenders don't want more homes on their books so they delay filing a notice of default. However, if you receive a Notice of Default start counting the days because if you don't, before you know it, you may find the sheriff at your door removing you from the property.

If you have missed a payment think about a "short Sale". That could be the best answer for you instead of foreclosure. A short sale can be done easily and it won't effect your credit like a foreclosure would. If you have questions please call me.

Until next time, Bonnie