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Starting a California Foreclosure
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We know that a defaulted loan ties up your capital. So, All Valley Trustee
starts processing your California foreclosure immediately, and completes your
foreclosure as quickly as legally possible.
All Valley Trustee is a “one stop shop” foreclosure trustee company serving
private investors, lenders, and loan servicing companies specifically in
California. We offer a wide range of trustee, legal, and property liquidation
services, including:
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Management of Foreclosed Properties
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Legal Services, including Evictions, Judgment Collection and Bankruptcy Stay
Relief
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Marketing and Sale of Foreclosed Properties
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The California Foreclosure Process
1. Notice of Default / Reinstatement Period
California foreclosure proceedings are started by recording a Notice of Default
(NOD) in the county in which the property is located. This recording of the
Notice of Default gives "Constructive Notice" to the public.
After the recording of the Notice of Default, in the state of California, the
borrower and junior lien holders are given proper notification and the borrower
has 90 days to bring their account current. This period is referred to as the
Reinstatement Period. Many foreclosure proceedings are
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reinstated during this 3-month default period. The borrower or anyone with a
subsequent interest in the property may pay the beneficiary or his authorized
agent the amount necessary to cure the default. This amount will include
delinquent payments, and advances and the fees and costs associated with filing
the notice of default and other necessary documents. When the default is cured,
a Notice of Rescission will be prepared so that it can be signed by the
beneficiary. When the Notice of Rescission is recorded it cancels the Notice of
Default.
2. Notice of Trustee’s Sale
If after 90 days the borrower has not remitted the arrearages, the lender may
authorize and instruct the Trustee to record the Notice of Trustee Sale (NOS).
After 21 days of the recording of the NOS, a foreclosure sale can take place at
public auction. The property may be sold to a third party bidder or revert back
to the lender for a specified amount.
Bidders are required to bring cashier's checks or money orders to the sale in
an amount equal to or higher than the lenders opening bid. The auctioneer will
qualify each bidder and the successful bidder will have to tender full payment
at the sale.
The Notice of Trustee's Sale is recorded at the County Recorder's office in the
County where the property is located. It contains the date, time and place
where the auction will take place. This notice has to be published in an
adjudicated newspaper in the city where the property is located. The NOS is
also posted on the property as a requirement of law.
3. Disbursement of Funds
After the sale auction is completed and if the property sells to an outside
third party bidder, all funds owed to the lender/beneficiary will be prepared
for immediate payout. If the property reverts to the lender/beneficiary at the
sale, a Trustee's Deed will be issued and the lender will have ownership to the
property securing the debt.
We would be happy to educate you further on starting a California foreclosure.
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