Millions of homeowners across the United states are getting onto arrangements with their lenders. Many other states may have the same or similar laws here so listen in as this could affect you and your clients. Commonly, in the state of California, the foreclosure process starts with a Notice of Default being filed against a property to publicly notify the county/officials that they will be beginning the foreclosure to take the property back. In California Foreclosure Law states that there is a 90 day period commonly referred to as the redemption period (different than post-foreclosure type redemption periods in other states) this is the time frame where the homeowner is supposed to try to make arrangements with their lender(s). If after the 90 days have passed and the lender has not put a stop or hold on the foreclosure their trustee may at that time file the Notice of Trustee Sale in order to take the final steps to regain possession of the property. Slightly before the home can be taken back usually done about 14 days before the sale date the trustee will publicize the sale date. That date becomes the official date where the property is set to go to sale.
Image via Wikipedia
Here is where the kicker comes in. According to standard trustee guidelines in most cases the Notice of Trustee sale only has to be reissued after 12 months. Now, if you or your client has been in an active arrangement that continues to postpone the sale, possibly repeatedly for a period of time, if the client ever falls out of that arrangement the lender can foreclose sometimes immediately without any further notice. As we know that this can have major repercussions if the property actually goes to sale it is always important to be fully aware prior to this being the case.
Working with the right team can make sure that many of the complications that occur during these proceedings can be avoided and can make a major difference on the outcome of your battle with your lenders.
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