Falling behind on mortgage payments can be a very stressful situation. We’ve heard from many potential clients that they are behind on their mortgage and they can feel a foreclosure coming.
It might provide some homeowners peace of mind to know the timeline of a foreclosure.
Often, when a homeowner is behind on their mortgage by 60 to 90 days, the lender will begin the foreclosure process.
- The foreclosure process begins with the lender filing a Notice of Default (NOD) with the county recorder.
- Within ten days of the NOD being filed, the trustee mails a copy of the NOD and the filing date to the defaulting borrower.
- After 30 days, a follow-up NOD is mailed to the borrower.
- After 90 days, the sale date, time and location for the auction may be set, unless the borrower has filed for bankruptcy. Bankruptcy can halt the process and protect the borrower through the automatic stay. This ceases the process during the active bankruptcy.
- If the borrower does not file bankruptcy, the IRS is notified of the pending sale date at least 25 days prior to the event.
- Twenty days before the auction, public notices are published in newspapers and run for three consecutive weeks. Concurrently, a Notice of Sale (NOS) is posted on the property and sent to the borrower and all involved parties. The NOS is also recorded in the county recorder’s office 14 days prior to the sale.
If you are concerned that you may be facing a foreclosure in your future, bankruptcy may be an option to help you remedy the arrears and keep your home. Contact your Stockton bankruptcy attorney for more information.
Categorized in: Bankruptcy