Non-Judicial Foreclosure Timeline (ex. California)

As borrowers fall behind in their payments, they can expect lenders to react in specific ways at specific times. Here's a look at the timeline from late payment to foreclosure.

DAY 1    It's the first of the month, and the mortgage payment is due. The borrower misses the payment.

DAY 16-30    A late charge is assessed on payment. The company that processes borrower's payments (called the mortgage servicer) starts attempting to make contact to find out what happened. File is sent to the Collection Department.

DAY 45-60    The servicer sends "demand" or "breach" letter to the borrower pointing out that terms of the mortgage have been violated. The borrower is given 30 days to resolve the situation by paying the delinquent amount.

DAY 90-105      The servicer, collection department, refers the loan to its foreclosure department and hires a local attorney or other firm to initiate foreclosure proceedings. The servicer's representative will record a formal notice of foreclosure or notice of default (NOD) at the local courthouse and publish details of the debt in the local newspaper. Adversely affects one’s credit with notes of defaults on credit history. Possible to repair these notes and improve credit over time.

DAY 150    The house is sold at foreclosure sale or auction. Former homeowner is required to vacate the property. Adversely affects one’s credit for a lifetime as all loan applications inquired if there has ever been a foreclosure under one’s name. 



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The information contained on this website is general and should not be applied to specific legal and/or tax problems without first consulting your own attorney and CPA.