, a creditor must follow these steps:, usually the lender, a title company or an attorney, records a at the county recorder’s office. P The Notice of Default includes a statement of why the trustee believes your loan is in default. P The usual reason is that the borrower has not made the scheduled payment. P A trustee is required to give written notice of the default to the borrower and anyone who has filed a.
P This is usually done by registered mail. P Always arrange to get any letters sent by registered mail. P The Notice is valid even if you fail to sign for it or pick it up from the post office. You will likely receive a copy of the Notice of Default.
P However, if you suspect that you are in default, you should check with the county recorder and with your lender to see if a notice of default has been filed. P You may also file a Request for Notice with the County Recorder’s Office to insure that you are notified of any default. A notice of default does not mean that you have to move out immediately, but you will be required to move once the sale of the property is final. After the Notice of Default is filed, you must make arrangements with your creditor to.
P This means you must make the loan current, which includes remitting any past due payments, late charges, collection charges incurred by the lender and legal fees. P This must be done within of the recording of the Notice of Default. Otherwise, after the lapse of at least three months the trustee can issue a Notice of Sale and require you to pay the entire loan in order to avoid losing your property. If you do not cure the default within three months of Notice of Default, the trustee must give written notice of the time and place of the sale.
P This is done by:. P The last notice must occur more than before the date of sale; and, Posting a Notice of Sale at least 20 days before the date of sale on the property and in at least three locations in the county where the property is located. Once the Notice of Sale has been advertised and posted, the sale can be postponed by the trustee. P Once the Notice of Sale has been issued, you must pay the entire loan balance plus any other charges including late charges, collection charges, and legal fees, to redeem the property.
P If you cure the default by making your required payments or paying the entire balance, you should request the trustee to file a Cancellation of Notice of Default. If the sale goes forward and the house is sold for less than you owe the lender, the lender may, within three months after the sale, sue you for the balance due on the obligation plus expenses. P This is called a deficiency judgment. P The deficiency judgment will be limited to the amount by which the debt plus interest, costs, and expenses of sale–including trustee’s and legal fees– exceeds the fair market value of the property as of the date of the sale.
P The fair market value is equivalent to what the property would normally sell for to the average buyer as of the date of sale. The fair market value is not necessarily the amount the property was purchased for at the Trustee’s Sale.