A Brief Summary

STEP ONE

After the owner/trustor fails to make their payments for anywhere from 15 days to one year (or more), the Trustee (Attorney for the Beneficiary) files a ‘Notice of Default’ with the county in which the property is located. This must be recorded at least 120 days prior to the scheduled date of the trustee sale (auction). This is an excellent time for you to discuss terms with the owner to keep them out of foreclosure by buying their property 90 to 30 days before auction. This is an especially good tactic if you don’t have a lot of capital to buy at auction.

STEP TWO

Approximately 90 days after we pick up and publish the information from the filing of the Notice of Default and Election to sell, the trustee files a Trustee’s Notice of Sale with the county. This is notice to the trustor and the public, and published in any local paper in that county where the property is located stating that the lender intends to sell the property at auction.

STEP THREE

The Trustee will set a minimum bid for the property a few days prior to sale. We give you the estimated minimum bid at time of sale in our earlier publication, At the Trustee Sale you are required to have the entire amount you plan to bid available in cash or a cashier's check. If you have a large amount of capital this is a great way to purchase real estate at a tremendous discount. 

STEP FOUR

If there are no bids above the minimum the property then reverts back to the lender. Once this occurs the property becomes known as an R.E.O. (Real Estate Owned) and can be purchased from the lending institution. This property is usually available below market value.

FORECLOSURE DATA NW

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Created 12/19/01, last edited 10/05/09 mas

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