Sam-I-Am Your Agent…

This post is part 2 to my foreclosures series.  
The Trustee’s Sale

In the last article, I discussed the basic steps involved in the nonjudicial foreclosure process. This month we will take a closer look at the Trustee’s Sale.

Using the information in the example below, let’s discuss how the Trustee’s Sale works. At the Trustee’s Sale, you bid on the trust deed that is being foreclosed.

In our example, it is the second trust deed:
SAMPLE PROPERTY
    Market Value: ……………….. $210,000
   Existing Liens:
     1st:……………………………. $103,000
     (balance & arrears)
     *2nd:. . . . . . . . . . . . . . . . . $27,000
     (opening bid)
     3rd: …………………………….. $10,500
    (balance & arrears)
 Property Taxes:…………………….. $2,000

How much do I bid? 
In order to get the property, you must bid more than the opening bid. Your overbid could be for as little as one penny. In our example, the opening bid is $27,000. This amount represents what is owed to the foreclosing beneficiary, which includes the loan balance, back interest, late payment penalties and the trustee’s fees and costs. Your minimum bid would have to be $27,000.01. Read the rest of this entry »

I get asked about foreclosures alot. 
So, while there are zillions of articles out there, I have found these 2 articles that are published by my association, SRAR, to be the most helpful.  Do you agree? 
Feel free to leave comments/ask questions. 

The following article is an overview of the nonjudicial foreclosure process. This is the foreclosure method most often used in California. No court action is needed and the entire process takes under four months if there are no delays. For a more detailed study of the nonjudicial foreclosure process, please read Sections 2924. ¬2924h. of the California Civil Code.

Three basic steps are involved:
1. Recording of a Notice of Default
2. Recording of a Notice of Trustee’s Sale
3. Trustee’s Sale

Special Note: If you are interested in listing, selling and/or purchasing foreclosure properties, you will have to know how to find and use the notices of default and sale. This will be discussed in future articles.

The nonjudicial foreclosure process begins when the beneficiary (lender) notifies the trustee in writing that the trustor (borrower) is in default and instructs the trustee to initiate foreclosure proceedings. The trustee prepares a Notice of Default and records it in the office of the county recorder of the county in which the property is located.

Within ten days after recording the Notice of Default, the trustee must mail copies of the notice to the trustor and to all parties who recorded a Request for Notice of Default.
Read the rest of this entry »