Notice of Default (NOD)
A NOD is typically filed 90 days after non-payment of your mortgage loan, California State law allows lenders to record a Notice of Default on your property and start the foreclosure process if you are over 90 day delinquent.
Notice of Trustee’s Sale
Ninety days (3 months) after NOD is filed California State law allows the bank to record a Notice of Trustee’s Sale and escalate foreclosure proceedings.
Trustee’s Sale
21 days after the Notice of Trustee Sale is filed the bank can sell your home at a foreclosure auction. If your property is not sold on the court house steps, the bank takes title back as an “REO” (real estate-owned) property. If an investor buys it, it will be almost impossible to resend the sale
"Cash For Keys"
If the investor who holds the note takes the home back as an REO, the bank’s asset manager will hire a real estate agent to offer you “Cash For Keys”, to move out in 2-4 weeks. Cash for Key offers are typically $3,000 to $5,000 and you must sign an agreement. Once you vacate the property, the Realtor will list the property for sale in the MLS to the public. If the property was sold to an outside buyer then you will most likely receive a 3 day notice to quit along with a "Cash for Keys' offer. If you have renters in the property then they have renter's rights which differ from owner's rights. Renters with a valid lease may have up to 90 days. However, consulting an attorney to clarify this time-line is important at this time.
Unlawful Detainer Action
The banks would rather you surrender the property on good terms but if you don’t accept the Cash For Keys offer, the Realtor will put a Three-Day Notice to Quit on your door. If you don’t move out after three days, the bank will hire an outside law firm to serve you with an Unlawful Detainer Complaint, which starts the eviction process. You have generally have five days to respond; if you don’t, the bank’s lawyer will get a default judgment against you. Additionally, this is the time when you may be able to negotiate a longer time frame to vacate. Try consulting an attorney to better understand your exact time-line if the investor does not want to work with you.
Unlawful Detainer Trial
If you answer the Unlawful Detainer Complaint, you can expect to go to a brief trial in about three to five weeks, depending on the county you reside in. You will almost certainly lose at trial so the judge will issue a Writ of Possession order. In a week or so, a Notice to Vacate will be sent to your home and you will have approximately two weeks to vacate before the Sheriff’s Department shows up to lock you out. In most cases the Sheriff's will give you 1 hour to get your belongings out of the home. The new investor may or may not allow you to come back at a scheduled time to retrieve the remainder of your possessions.
PART III. Litigation Against the Bank To stop the sale of your property, you must first file a lawsuit against the bank. There are only a limited number of reasons you can use to sue the bank in order to stop a foreclosure sale. With the recent foreclosure moratorium announced by major lenders this could be the perfect time to sue your lender. Contrary to what some might think about the timing, judges don't take kindly to homeowners filing a lawsuit just to stop a foreclosure. So if your lender
PART II. Defenses Against Foreclosure If the bank does not voluntarily agree to stop the trustee sale you have only two options to stop it stop the sale of your property:
PART I - Foreclosure Timeline and Eviction Process Notice of Default (NOD)A NOD is typically filed 90 days after non-payment of your mortgage loan, California State law allows lenders to record a Notice of Default on your property and start the foreclosure process if you are over 90 day delinquent.
