The particulars of each case will be different, but a foreclosure typically follows this general timeline.
Foreclosures are most often non-judicial (which means there are no court proceedings leading to a foreclosure) and governed by language within the deed of trust or mortgage that gives the lender the right to conduct a foreclosure. If that language is missing from the documents you signed, the lender will have to initiate a court proceeding in order to conduct a foreclosure.
The foreclosure process begins when the borrower is in default under the loan documents, generally when they have missed a loan payment. During this time the lender may attempt contacting the borrower in order to cure the default. It is at this point in the process where an attorney may be most effective in negotiating a commercial loan modification. Your lender may be willing to negotiate in order to prevent a foreclosure, and it may be in your best interest to retain an experienced attorney at Hanasab & Zolekhian, LLP, to conduct these negotiations on your behalf with your lender’s legal department.
If a borrower misses payments from three to six months, the lender will usually order the trustee to record a Notice of Default at the county recorder's office. This Notice of Default is a public document, available to anyone. The Notice of Default puts the borrower on notice that a foreclosure is imminent (as soon as 30 days from filing of the Notice of Default) and begins a reinstatement period that typically runs until five days before the property is auctioned. Negotiations at this stage of the foreclosure process can still be fruitful and an experienced attorney can still obtain positive results and potentially prevent the lender from foreclosing.
If the loan cannot be brought current by having all the past due payments paid, the loan modified, or paid off through a real estate short sale, the lender will establish a foreclosure date. A knowledgeable lawyer can assist with these options. The attorneys with Hanasab & Zolekhian, LLP, have the negotiating skills and the understanding of lending transactions that are necessary to effectively obtain a commercial loan modification.
Finally, a Notice of Sale is sent to the borrower and a copy of the notice will be posted on the property and recorded at the county recorder's office in the county in which the property is located. Over a period of three weeks, the Notice of Sale will also be published in newspapers that cover that county. When the date of the sale arrives, the property will be auctioned off and the trustee will transfer the deed of title to the highest bidder at the auction.
If you are near or in foreclosure proceedings, you should contact us immediately to see how we can help you save your property.
POWER OF SALE FORECLOSURE GUIDELINES
If your loan documents (deed of trust or mortgage) has a Power of Sale clause with specific time, place and sale information, then those procedures in the loan documents must be followed.
Otherwise, the Non-Judicial foreclosure is conducted as follows:
1. A notice of sale must be:
- Recorded in the county where the property is located at least fourteen (14) days prior to the sale, mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale;
- Posted on the property itself at least twenty (20) days before the sale; and
- Posted in one (1) public place in the county where the property is to be sold.
Note: The Notice of Sale must contain the time and location of the foreclosure sale, the property address, the trustee's contact information and a statement that the property will be sold at auction.
2. The borrower may cure the default and stop the foreclosure until five (5) day prior to the foreclosure sale. However, some lenders choose to give the borrower until the day before the sale.
3. Foreclosure Auctions are held on any business day from 9:00 am and 5:00 pm at the location listed in the notice of sale, and anyone may bid at the sale. The highest bidder will be awarded the property. If necessary, the sale may be postponed for a variety of reasons. Postponement can be announced as late as the time and location of the original foreclosure sale.
Posted in one (1) public place in the county where the property is to be sold.
Note: The Notice of Sale must contain the time and location of the foreclosure sale, the property address, the trustee's contact information and a statement that the property will be sold at auction.
2. The borrower may cure the default and stop the foreclosure until five (5) day prior to the foreclosure sale. However, some lenders choose to give the borrower until the day before the sale.
3. Foreclosure Auctions are held on any business day from 9:00 am and 5:00 pm at the location listed in the notice of sale, and anyone may bid at the sale. The highest bidder will be awarded the property. If necessary, the sale may be postponed for a variety of reasons. Postponement can be announced as late as the time and location of the original foreclosure sale.
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