February 17th, 2011 at 10:27 pm
? After a default occurs, a? notice of default? is recorded in the county in which the property is located. This does not necessarily occur after one or more payments are not met but for logistical reasons may occur after a loan is in substantial default — sometimes six months or more past due. The foreclosure process does not move forward for a minimum of 60 days following the filing of the notice of default. This is known as the redemption period.
? A notice of sale containing the name and address of trustee, certain disclosures (including that the property is about to be lost to foreclosure sale), the name of the? beneficiary, and other information must be recorded in the county in which the property is located at least 14 days before any foreclosure sale. This is known as the publication period.
? The borrower must receive a twenty (20) day notice before any foreclosure sale. Additionally, the notice of the foreclosure must: (a) mailed to the defaulting borrower (and other creditors whose liens affect the property) and; (b) be posted at the property being foreclosed upon and in a public place in the county where any sale would occur. The defaulting borrower may prevent the foreclosure sale by paying all arrearages up to five (5) days before the sale. The trustee’s foreclosure sale then occurs no earlier than? twenty one (21) days after the first publication.
? Foreclosure sales must take place on a business day between the hours of 9AM and 5PM and must occur at the location referenced on the? notice of sale. The trustee will? auction the property to the highest bidder, including the lender. The borrower is permitted to postpone the sale for one (1) day.
? Following the sale, the property is transferred to winning bidder. By default this will be the lender if no bid higher than the lender’s opening bid is received.
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