Foreclosure FAQs
- What are foreclosures?
It is the legal process that the lender undertakes to gain title to the home that was used as collateral for the mortgage loan that is now in default. It is a termination of all rights of the homeowner covered by a mortgage. Foreclosure is a process in which the estate becomes the absolute property of the lending institution. - When does the foreclosure process start?
The foreclosure process begins when the homeowner fails to make payments of the money due on the mortgage at the appointed time. This may be due to several reasons. Unemployment, divorce, medical challenges, terms of the loan, sick of property management, and even death. - What is a NOD / LIS?
A notice to a borrower with property as security under a mortgage or deed of trust that he/she is delinquent in payments. If the delinquency (money owed and late), plus costs of preparing the legal papers for the default, is not paid within a certain time, foreclosure proceedings may be commenced. - What is a NTS / NFS?
This is the second and final phase of the foreclosure process (auction). The notice is prepared and recorded by the foreclosing trustee. It recites the legal description of the property being foreclosed upon and gives the date, time and place of the pending trustee sale. This publication phase has to be a minimum duration of three weeks. - What is a REO?
Real estate owned by a beneficiary/lender because it was not bought by an outside bidder at the trustee sale. The instant that no bids are made at the sale, the foreclosing beneficiary (lender) becomes the owner. He/she now must keep current any loans senior to his/her loan if there are any. The property is now a REPO or R.E.O. (real estate owned).
