Pre-foreclosure/foreclosure process


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California foreclosure timeline

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Pre-foreclosure/foreclosure process

  1. 1. Presented By Gary & Jennifer Ricco How does a Foreclosure work?
  2. 2. <ul><li>Foreclosure - A legal process in which, against the wishes of the owner, real property is sold to satisfy a public or private debt for which the real property has been pledged as security. </li></ul><ul><li>Notice of default (NOD) - a notice that is filed with the county recorder when a homeowner is not current on the loan that is secured by the homeowner's property. If the default is not cured within a statutory period of time, the lender can move to auction the property to the highest bidder. </li></ul><ul><li>Foreclosure Sale (NOTS) - The actual sale of real property at the conclusion of a foreclosure proceeding. The sale may be to a third party as a result of a high bid, or to the foreclosing creditor (the lender) if there are no bids higher than the amount of the defaulted debt plus foreclosure costs. If the sale generates proceeds beyond the satisfaction of the debt and foreclosure costs, the balance generally must be refunded to the party who has lost title to the property. (the homeowner) </li></ul><ul><li>Real Estate Owned - Real property that has been foreclosed by a lender and is now owned by the lender. </li></ul>
  3. 3. <ul><li>The timeline displayed here is typical in a California non-judicial foreclosure. </li></ul><ul><li>The foreclosure timeline does not begin until the lender feels they have exhausted all avenues for curing the payment delinquency. </li></ul><ul><li>Normally, this happens after the borrower has missed 1 to 3 monthly mortgage payments. </li></ul><ul><li>The borrower has probably been contacted by the lender several times prior to beginning the foreclosure process. </li></ul><ul><li>The official foreclosure process then begins by the lender contacting a Trustee and instructing them to file a Notice of Default. </li></ul>
  4. 4. <ul><li>Day 1 - Notice of Default recorded with County Recorder. </li></ul><ul><li>Within 10 business days - Notice of default is mailed by the Trustee to the borrower and includes the recording date. </li></ul><ul><li>Within 1 month - Notice of Default is mailed to borrower again. </li></ul><ul><li>At 90 Days - Notice of Default period ends and Notice of Trustee Sale period begins. </li></ul>1 st Missed payment 2 nd Missed payment 3 rd Missed payment NOD Filed (Begin Three) (Month Period) NOTS Filed (21 Day Period Begins) 30 60 90 30 60 90 Auction TYPICALLY Held after 21 Days Foreclosure Process
  5. 5. <ul><li>After 90 Days - Sale date, time, and location are set. </li></ul><ul><li>30 days prior to sale date Notice of Sale is sent to IRS (if applicable). </li></ul><ul><li>21 days prior to sale date </li></ul><ul><ul><li>Notice of Sale is published in newspaper and is required to run for 3 consecutive weeks. </li></ul></ul><ul><ul><li>Notice of sale is posted on the property. </li></ul></ul><ul><ul><li>Notice of sale is mailed to borrower and required parties involved. </li></ul></ul><ul><li>14 days prior to sale date Notice of Sale is recorded in County Recorder's office </li></ul><ul><li>5 days prior to sale date – “Your RIGHT to reinstate expires” </li></ul>
  6. 6. <ul><li>Sale Date: The property is sold to highest bidder or reverts back to lender as a REO (bank owned) Property </li></ul><ul><li>Auction time: The final stage of the foreclosure process is the auction. In most cases the borrower has tried every possible way to save the property (refinance, borrowing, sale, joint venture, etc.). </li></ul><ul><li>Location : Typically takes place at the civic center or the courthouse of the county where the property is located. Auctions start at all different times of the day. </li></ul>
  7. 7. <ul><li>A short sale is an option if done correctly, With the Lender’s Approval it will be a Positive Outcome for ALL PARTIES. </li></ul><ul><ul><ul><ul><li>HAPPY Homeowners (SAVED CREDIT, loan is reported to credit bureaus as PAID IN FULL). </li></ul></ul></ul></ul><ul><ul><ul><ul><li>HAPPY Lenders (Avoided Foreclosure process & legal fees). </li></ul></ul></ul></ul><ul><ul><ul><ul><li>HAPPY Buyers (They bought at a discount) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>HAPPY Agents (we did our job in selling your home) </li></ul></ul></ul></ul>
  8. 8. <ul><li>He lived Rent Free for 4 months </li></ul><ul><li>Monthly Payments he did not make - </li></ul><ul><ul><li>Payment: $2,480 X 4 months = $9,920.00 </li></ul></ul><ul><li>Was able to sell the home as a Short Sale </li></ul><ul><li>and avoid the ‘Foreclosure’ ding on his credit </li></ul>
  9. 9. <ul><li>Contact us for a confidential analysis. </li></ul><ul><li>Begin the path to recovery. </li></ul><ul><li>Accept our services: </li></ul><ul><ul><li>Loan Modification Consultation </li></ul></ul><ul><ul><li>Short Sale </li></ul></ul><ul><ul><li>Lock box on property </li></ul></ul><ul><ul><li>MLS exposure </li></ul></ul><ul><ul><li>Internet exposure </li></ul></ul><ul><ul><li>Front Yard Sign </li></ul></ul><ul><ul><li>Advertisement to my exclusive list of INVESTORS </li></ul></ul><ul><ul><li>I’ll be the contact between you and your lender </li></ul></ul>
  10. 10. Gary & Jennifer Ricco CDPE 25124 Springfield Court, Suite 100 Valencia, Ca 91355 661.645.9409