Q.How does the Non-Judicial Foreclosure process work in California?
A.The non-judicial foreclosure process, commonly known as a Trustee Sale, is a relatively fast, easy and inexpensive process for the lender. When you take out a mortgage in California, the title to the property remains in trust until the borrower pays off the underlying loan in full. If the buyer defaults, the Trustor (lender) can sell the property after it has complied with the state laws for non-judicial foreclosure.
First, the lender (trustor) will send the borrower a Notice of Default which states the amount of debt, late fees, penalties and costs owed to the lender. This Notice Of Default is recorded with the County Recorder. The borrower will then have a 90 day Reinstatement Period to cure the default and bring all of the payments current.
If after the 90 day Reinstatement Period the borrower fails to remedy the default, the lender will file a 21-Day Notice of Trustee Sale. The Notice of Trustee's Sale must be published once a week for three weeks and posted on the property and in a public place. The Trustee Sale (Auction) will be held at least 20 days from the date that the Notice of Trustee's Sale was first published in the newspaper unless the borrower brings all of its payments current (including late fees, penalties and costs then owed) at least 5 days before the date of the Trustee Sale or pays the entire loan balance off in full (including late fees, penalties and costs) any time before the Trustee Sale occurs.