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Free List of Forclosers, The following time-line is applicable for non-judicial California Foreclosures under a Deed of Trust. Foreclosures begin with the Trustor (borrower) not making the monthly payments to the Beneficiary (Lender), the first missed payment is technical default, but in practical terms, 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 or other Loss Mitigation measures, the Beneficiary will instruct the Trustee to begin Foreclosure proceedings. Day 1 Within 10 business days Within 1 month After 3 months 25 days before sale date Within 10 days from 1st publication 14 days before sale date 7 days before sale date 5 business days before sale date Sale date Understanding Foreclosure, A good article from Gateway Title explaining the California foreclosure process. Here is some information I obtained from the C.A.R. legal department regarding short sales and judicial foreclosures. When a lender approves a short sale they are agreeing to release the lien. They are not agreeing to forgive the debt. If the borrower wants assurances they will need to get something in writing from the lender saying they are forgiving all liens and debt´s associated with the property. Most lenders will not do this. If they choose to they can sell the deficiency amount to a collection agency leaving the borrower in more turmoil. A judicial foreclosure is a court action. Therefore if someone is being foreclosed on in this manner they will receive a summons from the court to appear before a judge. If a judicial foreclosure is utilized there is a two year holding period during which the borrower may bring all debts current and redeem the property. Most lenders do not use the judicial process for this reason. |