| Non-Judicial Foreclosure |
- First, at the lender’s request, the trustee files (records) a notice of default. The borrower has three months from the date of recording to cure the default by paying all the payments due, including the trustee's foreclosure charges and any unpaid real estate taxes.
- If the borrower has not cured the default within three months, the trustee then records a second notice, a notice of trustee's sale. This notice sets forth the date for a public auction of the property. The notice of sale must contain a description of the property, and must be published in a newspaper of general circulation in the area where the property is located. The notice must appear at least once a week for 20 days, not more than 7 days apart, and must be posted publicly in the city where the sale will be held. As a result, the sale is usually held 21-30 days after the filing of the notice of trustee’s sale. The borrower retains the opportunity to cure the default up to five days before the actual trustee's sale.
Non-Judicial Foreclosure Facts
- Reinstatement period: until 5 days before the sale (the borrower’s right to cure the default before the actual trustee’s sale)
- Trustee's sale
- Notice of sale
- The total length of the foreclosure process is approximately four months (minimum 3 months 21 days).
Steps in a Trustee's Sale
- Lender notifies trustee to foreclose
- Trustee records notice of default
- Reinstatement period (minimum 3 months or up to 5 days before the sale)
- Notice of trustee's sale and publication of date, time and place of sale (3 weeks)
- Sale is held; highest cash bidder wins
- Trustee's deed is given to buyer (sale is final, borrower has no right of redemption)