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The foreclosure process normally begins
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 (e.g. Fannie Mae or Freddie
Mac). Typically, the foreclosure is commenced when a loan
becomes three months delinquent.
The foreclosure process generally begins
by the holder of the Note appointing a trustee to record a
notice of default with the county recorder of the county where
the property is located. From the date of the recording 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 date is set. A notice of the 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 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.
*Some county courthouses are historical.
Foreclosure sales are not held at these sites.
The opening bid on the property is set by
the lender foreclosing and is made available by our office,
once we have received it from the lender, on this web site
under the heading of Foreclosure Bids and Sales Results. Generally
our office receives bids the week of the sale.
The attorney conducting the foreclosure
sale will purchase the property on behalf of the lender, if
no bid higher than the opening bid is presented. If there
is competitive bidding, the property is sold to the highest
bidder. The successful bidder must deliver $5,000 in the form
of a cashiers check, wire transfer or money order at the time
of the sale to the trustee or attorney conducting the sale.
The balance of the purchase price, in the same form, must
be received in our office by noon the following day.
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Re-Instatement or
