Foreclosure Timeline

Once the beneficiary or lender's servicing agent has determined that a default exists, due diligence has been completed and satisfactory payment arrangements can not be made, it becomes necessary to proceed with filing a Notice of Default.

Typically the default occurs when the borrower fails to pay mortgage payments. The investor may proceed with the Notice of Default (NOD) for other default reasons such as failure of the trustor to pay property taxes, allowing the fire insurance to lapse, not paying the entire loan balance at maturity or failing to pay the senior lien holder.

At the time of default, the original Note, Deed of Trust and any Assignments are forwarded to C.N.A. Foreclosure Services, Inc.. The Declaration of Default and Substitution of Trustee are prepared. The documents are completed, reviewed and signed by the Beneficiary, then returned to C.N.A. Foreclosure Services, Inc. to authorize the foreclosure proceedings.

Upon receipt of the Declaration of Default including the Exhibit A, notarized original Substitution of Trustee, Note, Deed of Trust, Assignments and payment the Notice of Default is prepared and recorded by C.N.A. Foreclosure Services, Inc. as duly appointed Trustee of the Deed of Trust. The Beneficiary advances the Trustee's estimated fees and costs for the first three months of the foreclosure proceeding. The Beneficiary may be able to include the foreclosure fees and costs owed to be repaid by the borrower when the borrower reinstates or pays off the loan. If the property continues to trustee's sale, the costs will be incorporated into the opening bid.

90 days will lapse from recording the Notice of Default until the next phase of the foreclosure can commence. During this period, C.N.A. will handle all of the required mailings to parties involved with the property. Be sure to provide C.N.A. with all know addresses of the borrower(s). Certified and first class mail mail notices will be sent to the parties of record, which are known as 10 and 30-day mailings. C.N.A. handles all of these mailings as a part of the foreclosure process. You or your loan servicer will continue to service the loan and C.N.A. may forward to you any reinstatement requests. The borrower may contact you or your servicer during this time to payoff the account or work out a repayment plan or loan modification.

Please let us know if you need an update of the fees owed during this period and if the loan is reinstated or paid in full.

Following the 90 day Notice of Default phase, the second phase of the foreclosure can commence. In the second phase, C.N.A. Foreclosure Services, Inc. prepares and records the Notice of Sale (NOS).

The Notice of Sale is posted on the property, in a public place and published in a newspaper of general circulation. C.N.A. mails copies of the Notice of Sale to all of the parties of record with an interest in the property.

The cost of the publication fees charged by the local newspaper can range greatly depending on the publisher. The cost of publication in the adjudicated newspaper is estimated at the Notice of Sale billing.

The Beneficiary will receive a copy of the Notice of Sale, Bid Instructions and billing statement. The Bid Instructions are to be completed by the Beneficiary and returned to C.N.A. along with any remaining balance prior to the Trustee's Sale. The Trustor can reinstate the loan up to five days prior to the Trustee's Sale. Lender may choose to accept reinstatement up to the actual Sale date.

The Trustee's Sale is a public auction wherein the property is sold to the highest bidder payable in a cashier's check at the time of sale. The Beneficiary has set the opening bid and has a full credit bid for the amount the lender is owed.

If the Beneficiary is the highest bidder at the Trustee's Sale, the property will revert to the Beneficiary.

Following the Sale, C.N.A. Foreclosure Services, Inc. prepares the Trustee's Deed Upon Sale (TDUS). The Trustee's Deed Upon Sale is recorded with the County Recorder and the document transfers the title of the property from the Trustor into the name of the successful bidder at the Trustee's Sale. The new owner of the property may now take possession of the purchased property.

Depending on the type of property subject to the foreclosure sale, there may be an additional waiting time before the Trustee's Deed Upon Sale can be recorded.