Foreclosures are subject to specific terms that must be adhered to before the foreclosure can be completed and the property sold. The process of foreclosing, from the initial recording of the Notice of Default to the sale of the property, takes approximately four (4) months. We have provided information on these key terms and conditions to help you better understand the foreclosure process.
Notice of Default: After contacting Preferred Default Management, Inc. and providing the note, deed of trust and information on the default, we will prepare and record the Notice of Default. This action will initiate the foreclosure process, at which point the foreclosure enters the reinstatement period. Copies of the Notice of Default will be sent to the trustor and any other party who has requested copies of the notice within 10 business days. Civil code also dictates that copies of the notice will be mailed to certain entitled parties, such as junior lien holders, within one month of recording.
Reinstatement Period: The reinstatement period begins on the date that the Notice of Default is recorded, and lasts for a period of three (3) months. During this period, the borrower is given the opportunity to cure the default by paying all delinquent mortgage payments, late charges, advances, foreclosure fees, and any other charges/fees that may be required under the terms of the note. If the borrower successfully cures the default during this period, Preferred Default Management, Inc. will prepare a Notice of Recession to be signed by the beneficiary, which will cancel the Notice of Default.
The Redemption Period: Should the borrower be unable to cure the default during the reinstatement period, the foreclosure will enter the redemption period. During this period, the Trustee's Sale (public auction) will be scheduled and published in the newspaper for three (3) consecutive weeks. During this period, the borrower may cure the default up to five (5) days prior to the date of sale; as the beneficiary, you have the ability to reinstate the loan at any time prior to the sale. Should the default fail to be cured, sale of the property will commence and foreclosure of the property will be completed.
