San Diego Foreclosures: The Process

Author: Rob Presley

Author: Rob Presley

Foreclosures in San Diego typically all start with a homeowner who has negative equity not making their mortgage payments for 2 to 3 months. A foreclsoure can occur from a loan in any lien position, a first mortgage or even a second mortage home equity line of credit. Essentially any loan that is tied to your home can foreclose on the home for non-payment.Typically a lender will start a San Diego foreclosure process within 2-3 months after the payments have stopped, but in today's market place longer timeframes are not uncommon.The most commonly used foreclosure process for San Diego homes is called the "non-judicial process". In this foreclosure process a loan servicer or lender records and posts/mails a NOTICE OF DEFAULT, or "NOD" to start the foreclosure process. Recent changes state that the NOD filing can't happen until 30-45 days after the lender has made the legally required contact with the homeowner to explore options to avoid a foreclosure. If after the 30-45 days no solution can be worked out then the NOD can be filed and posted and the homeowner then has another 90 days to bring the loan current, including all past due amounts, penalties, and fees or the home is scheduled for a Trustees Sale auction.If the homeowner fails to bring the loan current in the 90 days then the loan servicer or lender records and posts/mails a NOTICE OF TRUSTEE SALE "NOT" informing all parties that the home can be sold in 20 days. Typically 20 days after the NOT is filed the home is scheduled for a Trustees Sale auction on the county court house steps. The Trustees Sale can occur as soon as 20 days after the NOT is filed and posted but due to the current quantity of San Diego foreclosures it is often 3-4 months afterwards.Occasionally lenders and trustees will delay sale dates while homeowners work on short sales, loan modifications, or other remedies. Additionally, a bankruptcy filing by the homeowner will typically delay the process even longer.When the Trustees Sale auction occurs the home is legally transferred to new owner. The new owner could be the lender or someone who bought the home at the trustees sale. In most cases the new owner will be the lender as most homes are going into foreclosure due to negative equity as much as non payment. Typically the starting bid price at the trustee sale auction is the total amount owed to the lender. In most every case this number is much higher than the homes value and therefore no one bids on the home and the lender "wins" the home for the amount they were owed. Occasionally lenders or trustees will lower the starting bid price to an amount up to 40% below the homes value and people will bid on the home and a new 3rd party will be the owner.Typically once the new owner is established the occupancy issue comes next. In many cases San Diego homes are still occupied by either the homeowner or tenants. In either case the new owner has no contract with the occupants and either needs to get a lease agreement (if the new owner wishes to lease it) with the occupants, get them to voluntarily leave, or evict them out of the property. The best for all parties involved is if the occupants of the property get a few thousand dollars to leave peacefully since moving cost money and that is what an eviction and time delay will cost the new owner anyways.
About the Author:

Rob Presley is a 20 year San Diego Real Estate Expert with over a billion dollars of San Diego Real Estate purchasing, financing, construction, and sales experience.

To view all San Diego foreclosure homes or get more information on how to purchase any San Diego home visit: http://www.PrestigeRealtySanDiego.com

POST COMMENT

Foreclosure and How to Stop it 5 Steps To Help You Stop A Foreclosure Fast Foreclosure High; TARP to be Extended Till October Foreclosures For Sale: The Difference Between Reos And Regular Foreclosures Know How You Can Stop Foreclosure With Ease No Foreclosure For You Steps For Avoiding Foreclosure Where to Quickly Find Local Foreclosures Stopping Foreclosure Before The Foreclosure Process Starts Stop Foreclosure Attorney - How To Find A Reputable One Steps to Stop Foreclosure Immediately - Must Do Things Pigeon Forge Foreclosures Can You Stop Foreclosure? - Ways To Stop Foreclosure Immediately