Most people are not familiar with the process of foreclosure and how it works in California. Here is the typical timeline for foreclosures to occur.
First of the Month - Day 1. Your monthly payment is due on the first day of the month. You cannot make the payment.
Middle of the Month - Day 10 or Day 15. Depending upon the loan, your loan becomes late on either the 10th or 15th day of the month. At this point, you owe your monthly payment and also a late charge. The lender receives computer notification that you have missed your payment and a late notice is usually sent out to you by mail. Also, the lender will attempt to call you concerning your payment.
First of the Next Month - Day 31. You are now into the second month in which you have not made a payment. The Lender Collection Department is notified and you receive more calls. Your credit report is now showing a mortgage late.
Middle of the Month - Day 45-60. You will get a notice from the lender that you are in "Breach of Contract" and that you have 30 days to cure your late payments and bring them up to date. At Day 60, your credit report shows a 60 day late.
Beginning of Month - Day 90. If no payments have been made ad you have not spoken with the lender, foreclosure proceedings are started. A "Notice of Default" is filed with your County. You receive the notice by Certified Mail, Return Receipt. Now, you have 90 days to cure the default. You will normally no longer receive any correspondence from the lender. So you are left to your own actions.
Three Months Later - Day 180. At this point, you will receive the Notice of Trustee Sale. You will come home from work and it will be taped to your front door. It will also be published in the local newspaper. The Notice will say the location, date and time at which your home will be sold at auction. It will give you a phone number to call to attempt to "reinstate" your loan. This can only be done by paying the past due amount. Or by new financing.
Three Weeks Later - Day 201. At this point or any time thereafter, your home will be auctioned at the local Courthouse. Either a person will buy it, or it goes back to the lender.
