Non-Judicial Foreclosure or Trustee Sale Process
The foreclosure process begins when the beneficiary (lender) notifies the trustee (neutral third party) in writing that the trustor (borrower) is in default and instructs the trustee to initiate foreclosure proceedings. The trustee asks the beneficiary to provide the original Note, Trust Deed and writing information about Note unpaid balance, property address and reason of default.

Upon receipt and verification of all necessary information, the trustee will proceed as follow:
 
  • Trustee records "Notice of Default" and notified
    1. Trustor that a notice of default has been filed against his/her property.
       
    2. Subsequent recorded lienors
       
    3. And all others who have requested "Notice of Default"
       
  • Trustee waits at least 3-months.
     
  • After 3-months, trustee advertise "Notice of Trustee's Sale" in a newspaper once a week for at least 3-weeks and posts "Notice of Default" on property.
     
  • Trustor can reinstate the loan (pay the back payments and penalties) usually up to 5 business days before the scheduled sale and stop the foreclosure process.
     
  • Trustee conducts Trustee's Sale.
    1. Sale is held in a public auction in the county where property is located.
       
    2. The opening bid is usually what is owed to the foreclosing beneficiary.
       
    3. At the sale, highest bidder receives a Trustee's Deed which contains no warranties.

If you need assistance because your are facing foreclosure or want to learn more about the foreclosure process, please call, Mario Perez, 626-688-0114.

Other topics:
1. What is judicial foreclosure or Court foreclosure?