THE CALIFORNIA NON-JUDICIAL FORECLOSURE PROCESS

The California non-judicial foreclosure process can be divided into the following four stages:

STAGE 1: DOCUMENT PREPARATION AND RECORDATION

• The lender provides Foreclosure Resources with the copies of the note, recorded deed of trust and executed Declaration of Default;
• Foreclosure Resources prepares a Notice of Default and Substitution of Trustee and sends them to the lender for execution; and
• Upon receipt of a deposit and the executed documents, Foreclosure Resources records the documents and orders a Trustee’s Sale Guarantee.

• Foreclosure Resources mails copies of the recorded Notice of Default to the borrower, certain junior lienholders and interested parties who have recorded a request for notice.  The recordation of the Notice of Default starts the foreclosure timeline running, including the three-month Reinstatement Period;;
• Foreclosure Resources reviews the Trustee’s Sale Guarantee for pertinent information; and
• Two weeks before the Reinstatement Period ends, Foreclosure Resources sends the authorization to publish to the lender.

• Foreclosure Resources sets the sale date four to five weeks in advance and publishes the Notice of Sale;
• Foreclosure Resources mails a copy of the Notice of Sale to the same persons who received copies of the Notice of Default.  Federal and state tax lien notifications are mailed as required;
• Foreclosure Resources arranges posting of the Notice of Sale in a conspicuous place on the property and one public place; and
• Foreclosure Resources records the Notice of Sale at least 20 days prior to the sale.

• Provided the loan has not matured on its own terms, the borrower has the right to reinstate the loan by paying all delinquent funds, including foreclosure fees and expenses, until five business days before the trustee's sale;
• Foreclosure Resources prepares the bid instructions and receives the posting affidavit;
• Foreclosure Resources arranges for the sale to be conducted; and
• After the sale, Foreclosure Resources records the trustee's deed and disburses the funds, if any, to the lender.