FORECLOSURE STAGES

STAGE 1:  TAKES THREE MONTHS

NOTICE OF DEFAULT (N.O.D.)   Recorded in the county of the location of the property in question.  The N.O.D. is not normally published in the newspaper.  Usually the TRUSTOR (borrower) can reinstate the loan without the BENEFICIARY'S (lender) permission unless the loan had matured.

STAGE 2:  TAKES TWENTY-ONE DAYS

NOTICE OF TRUSTEE SALE is recorded in the county and is published three (3) times, (once a week), in the local newspaper, then sold by the auctioneer.  The beneficiary that takes title at the sale now gets a TRUSTEES DEED and now owns the property if there are no bidders at the sale on the auction date.  You have to get the permission of the beneficiary, (lender) to reinstate the loan, five days prior to sale.

TRUST DEED LANGUAGE

TRUSTOR                  :BORROWER

TRUSTEE                 : NEUTRAL PARTY (not the escrow)

BENEFICIARY          : LENDER (The one who carries the paper or holds the trust deed and note)

POWER OF SALE   :Gives the Trustee the power to sell the property for the Beneficiary if the

                                     Trustor defaults on the loan.

PROPERTY PROFILE

Obtain from customer service of any title company.

Always order a complete property profile, which includes:

• GRANT DEED

• ALL TRUST DEEDS (Of record)

• ALL NOTICES OF DEFAULT

• ALL NOTICES OF TRUST DEED SALES

• PLOT PLAN (Description of layout of land)

 Copy of TAX ROLLS (This gives you a general figure of the value of the property in question, P.I.Q.).

There is not usually a charge for the property profile unless you abuse the free service.

DO NOT order a property profile on the property unless you are ready to make an offer on the property.  It normally takes 30 minutes of work to get the property profile.