San Carlos Train Station – Built in 1888
Foreclosure Timeline
Day 1: Notice of Default (NOD) recorded. The defaulting property owner has 3 calendar months to cure, or payback the default amount, either by paying off the lien, or by negotiating a payment plan.
Within 10 days: Notice of Default mailed.
Within 1 month: Notice of Default mailed.
3 months later: Trustee schedules a Trustee’s Sale (auction).
21 days later: On the date of sale, trustee sells the property to the highest bidder. This sale is usually held at the trustee’s office, or at the County Courthouse (call trustee for updates on time, date place).
Foreclosure Status Glossary
Notice of Default (NOD): The initial document (non-judicial) filed by a trustee that starts the foreclosure process, usually after the occurrence of a default under the deed of trust, or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.
Lis Penden (LIS): Notification of pending lawsuit. The initial document (judicial) filed by an attorney or trustee that starts the foreclosure process after the occurrence of default under the deed of trust or mortgage. Both LIS and NOD are part of the PRE-foreclosure process.
Notice of Trustee’s Sale (NTS): A filing by notice announcing a public auction.
Notice (Judgment) of Foreclosure Sale (NFS): An order signed by a judge, directing a “Notice of Sale” be published and that a referee (trustee) sell the property at public auction.
Real Estate Owned (REO): “Real Estate Owned” by the lender; the final step in foreclosure process. This document conveys property ownership back to the lender.
How do you buy a foreclosure and do you recommend it?
Hi Mark;
Just because it is a foreclosure doesn’t mean it is a good buy or investment opportunity. If you are asking should I buy a foreclosure at the courthouse steps..BEWARE. First, you will be competing with serious professionals with very deep pockets of cash; and because this is a cash transaction, and a foreclosure transaction, the typical disclosures rules do not apply. A few new foreclosure investors have been seriously “burned”, thinking they were buying home with a first deed of trust only to find out they just settled a second deed and the first is still attached to the property….”ouch”…If the question is “do you recommend buying a R.E.O.” bank owned property, then a good buyers agent can guide you through the process with careful steps along the way. These homes can turn out to be good opportunities for the eventual buyer but with no seller disclosures, experienced due diliengence is a must.