For California how long do I have to prevent foreclosure?

In the wake of the Housing Crisis of 2006-2008, many homeowners and landholders found themselves in serious financial jeopardy as banks collapsed and the value of the dollar plummeted, thus turning all of their assets into serious liabilities if they had been borrowed against. Foreclosures, bankruptcies, and debt abandonments skyrocketed in record time, approaching levels not seen since the Great Depression of the early 20th century. Everyone remembers the news media coverage of government bailouts, stimulus plans, and excessive amounts of money going out every day to accommodate the collapse of so many financial institutions.

Most people know at least one person that has fallen to this fate in the last few years. California, in particular, was hit rather hard by the housing crisis. As such, many people in that state were suddenly finding themselves in dire legal jeopardy through an error via their lending institution. In the interest of educating people so they know when and how they need to react in case of a foreclosure, this article offers a short explanation of the timeline for foreclosure proceedings in the state of California.

How long do I really have and what happens at each step?

Following is the applicable timeline for all California Foreclosures(of which all are non-judicial) handled under a Deed of Trust. Proceedings begin due to a Trustor(borrower) not upholding the terms of the contract made to the Beneficiary(lender). Now technically, the first missed payment or obligation is default. However, in most practical cases, Beneficiaries do not begin collection procedures until the third payment or obligation is missed. If, at that point, the Beneficiary cannot resolve the default situation with the Trustor via standard collection measures, they typically have a third-party Trustee begin Foreclosure proceedings.

Timeline

• Day 1 – Notice of Default filed with County Recorder.
• Within 10 Business Days – Notice of Default mailed to borrower’s recorded address.
• Within 1 Month – Notice of Default mailed. (Writer’s Note: At this point, legal counsel should be sought if Trustor does not have necessary funds to handle debt.)
• After 3 Months – Trustee sets sale date for debt.
• 25 Days Before Trustee Sale Date – Notice of Sale sent to I.R.S. when applicable.
• Within 10 Days Of 1st Publication Of Trustee Sale – Trustee sends request to Beneficiary for property directions.
• 14 Days Before Trustee Sale Date – Record Notice of Trustee Sale issued.
• 7 Days Before Sale Date – If court action is required, 7 day rule may apply.
• 5 Business Days Before Sale Date – Expiration of Trustor’s right to re-instate loan.
• Sale Date – Property is sold to highest third-party bidder or reverts to Beneficiary’s ownership to be sold at public auction.

Seek legal counsel in any case concerning the terms of a contractual agreement and be aware of your rights under the Fair Debt Collection Practices Act of 1978. You do have rights and you can exercise them.