The Notice of Default

In California, the non-judicial foreclosure process begins when a “Notice of Default (NOD)” is filed with the County Recorder.  Technically, a lender may file a Notice of Default as soon as one payment is missed.  In reality, some lenders will wait for a second or a third missed payment before filing.

After the Notice of Default is recorded at the County Recorder, the lender must also publish the notice in a newspaper of “general circulation” and mail a copy to the address of record for the borrower.

A Notice of Default is a public record.  Anyone searching the county’s public records, or following a newspaper that publishes notices can find it.   Foreclosure data companies such as RETRAN, REDLOC AND REALTYTRAC as well as many others re-publish and sell these public records daily.

Following the recording of a Notice of Default, the borrower has 90 days to bring the payments current.

If the default has not been corrected at the end of the 90 day period, the lender can then schedule a sale date and record a Notice of Trustee Sale.

Dealing With Foreclosure

If you fall behind in your mortgage payments, don’t try to hide from the lender.  Answer the phone and open all mail.  Lenders are motivated to work out solutions to avoid foreclosure.  You have more bargaining power than you might think.

If the lender offers a workout plan, listen to the lender’s proposal, but do not agree to anything without first reviewing the plan with your financial advisor or attorney.

Keep detailed notes of all your calls and correspondence with the lender.  Make notes of the date and time of any telephone conversation and the name of the person you spoke with.  When you receive mailed correspondence, keep the envelope showing the postmark.

I hope this information was beneficial to you.  If you have any questions, feel free to call Lea Anderson (310) 493-9678 or (323) 294-0094 ext 227.