ForeclosureFaq

Q. What is a Foreclosure?
A. A foreclosure is a term used to describe a trustee's sale
proceeding. It is a procedure used for enforcing a lender's
rights once an obligation secured by a deed of trust is in
default.
Q. What constitutes a default?
A. A default or breach exists when the borrower fails to make
the payments required under a note and secured by a deed of
trust.
Q. How long does a foreclosure take?
A. If there are no delays a foreclosure proceeding will take
approximately four months from the date of recording the
notice of default.
Q. How do I start a foreclosure?
A. To start a foreclosure with California Trustee Services,
Inc. (CTS) you will need to provide us with original note,
deed of trust and any assignments or modifications along with
a payment history. You will also need to complete our order
form that requests that we start a foreclosure on your
behalf.
Q. Are there any other forms which I must fill out?
A. In most cases you will need to sign a substitution of
trustee. This document requires NOTARY.
Q. Do I need to make a deposit to start the foreclosure
proceeding?
A. In most cases we will delay requirement of payment until
the initial three month and twenty-one day foreclosure time
period has elapsed.
Q. Who pays for the foreclosure proceeding?
A. Borrowers pay unless otherwise agreed- lenders only pay
foreclosure costs if they get the property back.
Q. What if the borrower sues or files bankruptcy?
A. The trustee may not proceed in any way, he may, however,
postpone an already schedule sale. Before the trustee can
continue the foreclosure, the lender must obtain relief from
the bankruptcy court. You will need to retain the services of
an attorney to acquire this order. The trustee sale cannot be
held within seven days after the expiration of the stay in
bankruptcy.
Q. What costs can be included in the reinstatement or payoff
amount?
A. Any money advanced to protect lender's security. Attorney
fees and costs incurred while defending yourself in court of
seeking relief from bankruptcy are allowable. Check with your
attorney before including any questionable items. Contact the
trustee for update fees and costs before accepting
reinstatement. A partial payment may not cure the default.
Accepting partial payment may invalidate the foreclosure. If
you believe it is in your best interest to accept partial
payments, consult your attorney regarding a written agreement
between you and the borrower.