According to a RealtyTrac US foreclosure report, close to 400,000 Californian homeowners defaulted on their mortgage and received foreclosure notices from January to June 2009, which was a 15% increase from the number of NODs recorded during the first half of last year.
What is a Notice of Default?
After homeowners have been delinquent in mortgage payments for a couple of months, a notice of default (NOD) is issued. In the state of California, you are given 90 days to bring due loans current after receiving an NOD by certified mail, and if you don’t bring your payments up to date, then a notice of trustees of sale will be issued. At this point, mortgage default is official.
What is a Notice of Trustees of Sale?
This notice serves to inform delinquent homeowners their properties will be put up for auction. The notice is published on the property and in a local newspaper once a week for three consecutive weeks. Homeowners will also receive a copy of the notification by certified mail.
What to Expect at an Auction?
A representative from the lending institution will conduct a public auction at the place stated in the notice of trustees of sale. The trustee’s deed will be handed over to the successful bidder once the total amount of the bid is paid. Payment has to be made in cashier’s check or cash immediately after the bidding is over.
Can You Prevent Any of This from Happening?
When your property goes to auction, it’s too late to save it, but you can prevent an auction by acting fast after you receive the NOD. Here’s how:
- Using equity, you can try to refinance your mortgage
- Work with your lender to modify your loan
- Hire a San Diego agent to get you going on a short sale
If your mortgage is in default, the best thing to do is to consult a real estate expert at San Diego Short Sales ASAP. We look forward to hearing from you.
We at San Diego Short Sales ASAP realize you are in the information gathering stage of your purchase and we respect your privacy. Should you have any questions, please feel free to Contact us or call directly at 760-576-4357. If you or someone who you know could use are help contact us DRE Lic 01788274
