A foreclosure is what happens when someone stops making their mortgage pmts and the bank is forced to sell the home to get their money back. It’s triggered when a pmt is late and concludes when the borrower is back on track or the property is sold to payback the lender what they’re owed.
There are two types of foreclosure processes: Judicial and Non-Judicial. This framework varies by state but both unfold over the course of several months.
California nonjudicial foreclosure process follows a structured timeline with distinct milestone stages from default to property sale. The entire process typically takes 110-200+ days, though it can be longer depending on borrower actions and postponements.
Payment Default (Day 1-120)
The process begins when a borrower misses mortgage payments and enters default, typically after 30 days of non-payment. However, most lenders do not initiate formal foreclosure proceedings until the borrower is at least 90-120 days delinquent. Federal servicing rules prohibit lenders from recording a Notice of Default until the loan is at least 120 days delinquent.
Pre-Foreclosure Contact (30 days before NOD)
Before recording the Notice of Default, California's Homeowner Bill of Rights requires lenders to contact (or attempt to contact) the borrower at least 30 days in advance to discuss foreclosure alternatives such as loan modifications or repayment plans. The lender must attach a declaration to the Notice of Default stating they have made this contact or attempted to do so.
Notice of Default - NOD (Day 120-210)
The Notice of Default is recorded with the county recorder's office and marks the formal start of foreclosure. This notice must be mailed to the borrower within 10 business days and specifies the total amount owed, including missed payments and foreclosure fees. Once the NOD is recorded, the borrower enters a 90-day reinstatement period during which they can stop foreclosure by paying all past-due amounts plus fees and costs. This is often called the "pre-foreclosure" stage and represents the best opportunity for borrowers to save their home.
Notice of Trustee's Sale - NOTS (Day 210+)
If the borrower does not cure the default within 90 days, the trustee records a Notice of Trustee's Sale, which sets the date, time, and location of the public auction. The NOTS must be recorded at least 14-20 days before the auction date and must be mailed to the borrower, posted on the property, and published in a local newspaper at least 20 days before the sale. Borrowers can still reinstate the loan up to five business days before the auction by paying all delinquent amounts; after that, only full loan payoff can stop the sale.
Trustee's Sale (aka Auction)
The property is sold at public auction to the highest bidder for cash. The sale must occur between 9:00 AM and 5:00 PM on a business day at the location specified in the NOTS. If no third-party bidder exceeds the lender's opening bid, the lender takes the property back as Real Estate Owned (REO). Once the trustee's deed is recorded, ownership transfers to the buyer, and the former
Example, commonly referred to as Ex, is example verbiage provided for a page I’m not finished working on yet.
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| State | Foreclosure Framework | Notes |
|---|---|---|
| California | Nonjudicial | Judicial allowed if lender requests |
| Texas | Both | Nonjudicial more common |
| Alabama | Nonjudicial | Judicial allowed but rarely used |
| Alaska | Nonjudicial | Judicial available but most are nonjudicial |
| Arizona | Both | Nonjudicial most common |
| Arkansas | Both | Nonjudicial more common |
| Colorado | Both | Nonjudicial most common |
| Connecticut | Judicial | Uses strict foreclosure or decree of sale |
| Delaware | Judicial | Court proceeding required |
| Florida | Judicial | Court action required |
| Georgia | Both | Nonjudicial most common |
| Hawaii | Both | Judicial now more common due to dispute resolution program |
| Idaho | Both | Nonjudicial most common |
| Illinois | Judicial | Multiple judicial processes available |
| Indiana | Judicial | Court proceeding required |
| Iowa | Primarily Judicial | Voluntary nonjudicial available by agreement |
| Kansas | Judicial | Court proceeding required |
| Kentucky | Judicial | Court proceeding required |
| Louisiana | Judicial | Court proceeding required |
| Maine | Judicial | Court proceeding required |
| Maryland | Both | Either process allowed |
| Massachusetts | Both | Nonjudicial most common |
| Michigan | Nonjudicial | Judicial allowed if lender requests |
| Minnesota | Both | Either process allowed |
| Mississippi | Both | Either process allowed |
| Missouri | Both | Either process allowed |
| Montana | Nonjudicial | Primary method |
| Nebraska | Both | Either process allowed |
| Nevada | Both | Nonjudicial most common |
| New Hampshire | Both | Depends on loan documentation |
| New Jersey | Judicial | Court proceeding required |
| New Mexico | Judicial | Nonjudicial exists but rarely used for residential |
| New York | Judicial | Court proceeding required |
| North Carolina | Both | Either process allowed |
| North Dakota | Judicial | Court proceeding required |
| Ohio | Judicial | Court proceeding required |
| Oklahoma | Both | Either process allowed |
| Oregon | Both | Nonjudicial more common |
| Pennsylvania | Judicial | Court proceeding required |
| Rhode Island | Both | Nonjudicial most common |
| South Carolina | Judicial | Court proceeding required |
| South Dakota | Both | Either process allowed |
| Tennessee | Both | Nonjudicial most common |
| Utah | Both | Nonjudicial more common |
| Vermont | Judicial | Judicial or strict foreclosure |
| Virginia | Both | Either process allowed |
| Washington | Both | Either process allowed |
| West Virginia | Nonjudicial | Judicial allowed but rarely used |
| Wisconsin | Judicial | Court proceeding required |
| Wyoming | Nonjudicial | Primary method |