What does a Notice of Default in California mean, and how is it different from a Notice of Trustee's Sale?
In California, a Notice of Default (NOD) is the first recorded notice. It starts the foreclosure clock under Civil Code §2924. At least three calendar months must pass after the NOD is recorded. Only then can a sale notice be posted. If you got a Notice of Default, check the date it was recorded. The three months count from that date, not from the day you got the notice. Then ask the trustee if a sale date is set. The trustee is the company that runs the sale. Its name and phone number are on your notice. Do not assume you have three months left. A Notice of Trustee's Sale (NOS) comes later. It is the notice that sets your auction date. The auction must be at least 20 days after the NOS is posted under Civil Code §2924f.
How does a short sale in California work if I owe more than the property is worth?
A short sale is a sale for less than you owe, with your lender's written approval. You list the property with a real estate agent. Then you send two things to your lender's mortgage-help team (loss-mitigation department). One is a real purchase offer from a buyer. The other is your financial forms. Without the lender's written approval, there is no short sale. You could still owe some money after the sale. Ask a lawyer of your own if that could happen to you. Ask most of all if you have a commercial loan or signed a personal guarantee. That is a promise to pay the loan yourself.
How do your fees work?
Our first review is free. We charge no upfront fees. Before you sign anything, we tell you in writing how we are paid. We also show you what sale costs to expect.
Are you a law firm, and do you give legal or tax advice?
We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney. For tax questions, talk with a CPA or a tax advisor.
Can I still catch up on my missed payments after a notice is recorded?
If you are behind on payments, you may be able to catch up. This is true for some missed-payment defaults under California Civil Code §2924c. It is called reinstatement. That means catching up on the missed payments and costs so the loan is current again. You pay the past-due amounts plus allowed fees. You can do this up until five business days before the scheduled sale date. Business days are weekdays that are not holidays. If your sale date moves, ask the trustee for your new deadline. If your loan has reached its maturity date, the rules are different. The maturity date is the date the whole loan comes due. It is also called a balloon payment. Ask your lender and a lawyer of your own what you must pay.
What happens if I sell my property before the auction?
Selling before the auction may leave you money after loans and costs are paid. We will show you a written estimate first. It shows the money you may have left after the sale. This is called a net sheet. The price is not guaranteed. An offer does not stop or pause the auction by itself. Neither does opening escrow. Escrow is the neutral company that holds the money and papers until the sale closes.
What is a deed in lieu of foreclosure?
A deed in lieu of foreclosure means giving the property back to the lender instead of an auction. Lenders usually require clear title. That means no other liens on the property. A lien is a debt recorded against the property. It is the lender's choice to say yes or no to a deed in lieu. You cannot make the lender take it.
Can you help with commercial properties facing a loan maturity, receivership, or a trustee sale?
Yes. We help with both homes and commercial properties across Southern California. This includes a loan at maturity. That is the date the whole loan comes due. It also includes a receivership. A receiver is a person a court puts in charge of the property. One co-principal is Gay-Lynn Chavez (DRE #01433767, eXp Realty of California, Inc.). The other is Francisco Williams, CCIM (DRE #01979442, Exp Commercial of California, Inc.).
Can contacting you or listing my property postpone my sale date?
Contacting us does not change your sale date. We cannot move it. Only your lender, the trustee, or a court can change a sale date. The trustee is the company that runs the sale. Its name is on your notice of sale. Rules for moving a sale date are in Civil Code §2924g. A listing alone does not change the date either. The law gives some owners a right of their own that uses a listing. If your property is a home with 1 to 4 units, you may have this right. It works with any real estate broker licensed in California, not only with us. The law gives this right to the person who signed the deed of trust for the loan. If that was not you, ask a lawyer if the right is yours. Here is how it works. You sign a listing agreement with that broker. That is the contract that hires the broker to market your property for sale. The listing must go on a public marketing site where buyers can see it. You send the signed agreement to the trustee. Use USPS certified mail. Or use an overnight courier with tracking that shows who signed for it and the date and time it arrived. The trustee must get it at least 5 business days before the sale date. If your sale date was already moved, use the date it was moved to. To be safe, do two things. Skip weekends and holidays when you count the 5 days. Have the listing live by that same day. If you do all of this, the sale cannot happen until 45 days after that sale date. You can use this once (Civil Code §2924f). If the sale moves this way, any right you have to catch up on missed payments (reinstatement) moves too. It is counted from the new sale date (Civil Code §§2924f and 2924c). If you get that 45-day delay, one more delay is possible. You send the trustee a real (bona fide), fully signed purchase contract the same way. It must arrive at least 5 business days before the new sale date. The price must be at least the total still owed on every loan or lien recorded against the home. The contract must show the name of the buyer, the price, the closing date, and that the escrow company accepted it. The sale then moves to at least 45 days after the trustee gets it. You can use this once too. A short-sale contract priced below what is owed does not count. These papers must come from you, not from a broker. So you must send them yourself. If they arrive late, or are sent another way, the trustee does not have to wait. To check if your sale date has moved, call the phone number or visit the website printed on your notice. Have the file number from the notice ready. A change made close to the sale date may not show up there right away. The best way to check is to go to the sale. It is held at the place on your notice. Ask a lawyer of your own, or the trustee, how this applies to you. Information here is general education; it is not a guarantee of any result.
Which California counties do you serve?
We serve these seven Southern California counties: Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and Santa Barbara.
We are real estate licensees, not a law firm, and we don't give legal or tax advice. If you need legal advice, we can refer you to an independent attorney.