California Notice Of Default- The Beginning of the California Foreclosure Process

 
 
 
WHAT IS A NOTICE OF DEFAULT? WHEN DO THE BANKS SEND THEM? WHAT DO THEY MEAN? WHO CAN HELP ME?
The Notice of Default, filed with the County Recorder’s office, is the beginning of non-judicial foreclosure process in California:
Once the Notice of Default is recorded, the foreclosure time frame begins. This is technically the foreclosure starting point, and the beginning of the legal length of time to foreclose in California.  California foreclosure law says that within 10 business days after recording, a copy of the recorded Notice of Default is sent by certified and regular mail to the borrowers at any addresses provided and any recorded special requests.
After no more than 30 days, a copy of the Notice of Default is sent by certified and regular mail to new owners and all junior lien holders to the Deed of Trust being foreclosed. A Trustee’s Sale Guarantee Report is ordered from the title company providing all title information. The foreclosure sale, or Trustee’s Sale can be formally scheduled 90 days after the NOD is filed.  And the Foreclosure Sale Date can typically be no shorter than 21 days, (with some variances).
The California Civil Code that spells out the California foreclosure laws, foreclosure process of the Notice Of Default is Section 2429c. and reads:
b)

(1) The notice, of any default described in this section, recorded pursuant to Section 2924, and mailed to any person pursuant to Section 2924b, shall begin with the following statement, printed or typed thereon:

"IMPORTANT NOTICE (14-point boldface type if printed or in
capital letters if typed)
   IF YOUR PROPERTY IS IN FORECLOSURE BECAUSE YOU ARE BEHIND IN YOUR
PAYMENTS, IT MAY BE SOLD WITHOUT ANY COURT ACTION, (14-point boldface
type if printed or in capital letters if typed) and you may have the
legal right to bring your account in good standing by paying all of
your past due payments plus permitted costs and expenses within the
time permitted by law for reinstatement of your account, which is
normally five business days prior to the date set for the sale of
your property.  No sale date may be set until three months from the
date this notice of default may be recorded (which date of
recordation appears on this notice).
  This amount is ___________________ as of ______________________
                                                   (Date)
and will increase until your account becomes current.
   While your property is in foreclosure, you still must pay other
obligations (such as insurance and taxes) required by your note and
deed of trust or mortgage.  If you fail to make future payments on
the loan, pay taxes on the property, provide insurance on the
property, or pay other obligations as required in the note and deed
of trust or mortgage, the beneficiary or mortgagee may insist that
you do so in order to reinstate your account in good standing.  In
addition, the beneficiary or mortgagee may require as a condition to
reinstatement that you provide reliable written evidence that you
paid all senior liens, property taxes, and hazard insurance premiums.
   Upon your written request, the beneficiary or mortgagee will give
you a written itemization of the entire amount you must pay.  You may
not have to pay the entire unpaid portion of your account, even
though full payment was demanded, but you must pay all amounts in
default at the time payment is made.  However, you and your
beneficiary or mortgagee may mutually agree in writing prior to the
time the notice of sale is posted (which may not be earlier than the
end of the three-month period stated above) to, among other things,
(1) provide additional time in which to cure the default by transfer
of the property or otherwise; or (2) establish a schedule of payments
in order to cure your default; or both (1) and (2).
   Following the expiration of the time period referred to in the
first paragraph of this notice, unless the obligation being
foreclosed upon or a separate written agreement between you and your
creditor permits a longer period, you have only the legal right to
stop the sale of your property by paying the entire amount demanded
by your creditor.
   To find out the amount you must pay, or to arrange for payment to
stop the foreclosure, or if your property is in foreclosure for any
other reason, contact:
                          ______________________________________
                            (Name of beneficiary or mortgagee)
                          ______________________________________
                                     (Mailing address)
                          ______________________________________
                                        (Telephone)
   If you have any questions, you should contact a lawyer or the
governmental agency which may have insured your loan.
   Notwithstanding the fact that your property is in foreclosure, you
may offer your property for sale, provided the sale is concluded
prior to the conclusion of the foreclosure.
   Remember, YOU MAY LOSE LEGAL RIGHTS IF YOU DO NOT TAKE PROMPT
ACTION.  (14-point boldface type if printed or in capital letters if
typed)"
So, What this basically means is that after 90 days from the date that this document was recorded with the county,
the bank or Beneficiary or Mortagee of your loan can schedule a Trustee's Sale Date to sell the property.
If you have questions or need more information, reach out to us here at 916-316-3810