California primarily uses non-judicial foreclosure for most residential properties. This means that the foreclosure process is conducted without court involvement and follows a specific timeline and procedures set forth in state law. However, judicial foreclosures are also permitted but are less common. Non-judicial foreclosures are typically faster and less expensive than judicial foreclosures, which require court proceedings.

Foreclosure is a complex and often daunting process, especially when it happens outside of court. To help you navigate this process, here's a detailed timeline outlining what happens and when.

After Approximately 90 Days of Missed Mortgage Payments

When a borrower fails to make mortgage payments for about 90 days, the lender can initiate the foreclosure process. Here's what happens next:

1. Request to Initiate Foreclosure: The lender sends a request to the trustee to begin foreclosure. Default documents, including the Substitution of Trustee and Notice of Default, are prepared and sent for signature and recording.

2. Title Search: A Trustee's Sale Guarantee (TSG) is ordered from a title company to identify all parties with an interest in the property.

Day 1: Notice of Default Recorded

• The Notice of Default (NOD) is officially recorded with the County Recorder.

Within 10 Business Days

• The NOD and an Important Notice are mailed to the trustor (the borrower) and any new owner on the Deed of Trust at the property address, any address on the Deed of Trust, and any other known addresses.

• The notice is also sent to parties with a recorded Request for Notice as required under Section 2924(b)(1).

Within 1 Month

• The TSG is received and reviewed.

• The NOD is mailed to all parties with an interest in the property, such as new owners and junior lienholders, as required under Section 2924(b)(1).

3 Months After Recording the Notice of Default

• The Notice of Trustee's Sale is prepared and sent for publication.

25 Days Prior to Sale Date

• The Notice of Sale is sent to the IRS, if applicable.

20 Days Prior to Sale Date

• Publication: The Notice of Sale begins publication in an adjudicated newspaper, running once a week for three consecutive weeks.

• Posting: The Notice of Sale is posted on the property itself. Posting services typically photograph the posting location for records.

• Mailing: The Notice of Sale is mailed to the trustor and all other parties who received the NOD, as required under Section 2924(b)(1).

14 Days Prior to Sale Date

• The Notice of Trustee's Sale is recorded in the County Recorder's office.

5 Days Prior to Sale Date

• The borrower's right to reinstate the loan (bring it current) expires.

On Sale Date

• The property sale can be postponed to a new sale date.

• The property can be sold to the highest bidder.

• If no bids meet the required amount, the property reverts to the foreclosing beneficiary (the lender).

Understanding this timeline can help both borrowers and lenders navigate the non-judicial foreclosure process more effectively. It's always advisable to consult with a real estate attorney to ensure all legal requirements are met and to explore all available options.