Six Month California Foreclosure Time Line

The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust.  Foreclosures begin when the Trustor/Mortgagor (borrower) fails to make the monthly payments to the Beneficiary (Lender). The first missed payment is technically default, however, most Beneficiaries do not begin the process until the third payment is missed.  If the Beneficiary cannot resolve the defaulted payment amount with the Trustor through forbearance, deed in lieu, or other Loss Mitigation measures, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings.

90 Days after the 1st missed payment - Bank Records a Notice of Default (NOD) with the County.

Within 10 business days of the Recorded Notice of Default - Mail the NOD to the mortgage holder and publish Notice of Default in local papers when necessary.

1 month after the Recorded Notice of Default - Mail or post a 2nd Notice of Default to the Mortgagor.

2-3 months After Recorded Notice of Default - Set a Trustee's Sale date.

25 days before sale date - Send notice of sale to I.R.S. (when necessary).

20 days before sale date - Publish Notice of Trustee's Sale, Post Notice of Trustee's Sale, Mail Notice of Trustee's Sale Date, including any State Taxing Agency.

Within 10 days from 1st publication of Notice of Sale - Request for directions to property sent to Beneficiary.

14 days before sale date - Mail or post a Notice of Sale to the Mortgagor and record Notice of Sale.

7 days before sale date -  If court action, 7 day rule may apply. (Trustee cannot sell for 7 days after expiration of Court Order.)

5 business days before sale date - Right of Borrower to re-instate the loan ends. 

Sale Date - Sold at Trustee's Sale Sale ( No less then 6 months from 1st missed Payment Date) - Property is then sold to highest bidder at public auction.  Auction price is commonly limited to the amount of the mortgage owed to the bank.  Since most properties being sold by the lenders are upside down in value, they usually revert back to the mortgage company and fail to sell at the Public Auction.  Auctions are typically held at the County Court House in the county where the property is located.