What is a foreclosure?
It is the lender's (beneficiary's) legal remedy for nonpayment by the borrower (trustor) of an obligation.
What is a judicial foreclosure? It is a foreclosure through court action. This action is sometimes necessary to remove certain tax liens.
What is a non-judicial foreclosure? It is the sale by a trustee under a deed of trust, or mortgagee under a power of sale of a mortgage. There are no court proceedings
What is a trustee?
One who is appointed, or required by law, to execute a trust.
A trustee is the third party to a Deed of Trust whose functions are to conduct a foreclosure in the event of a default or to issue a reconveyance in the event of a payoff
What does cancelled mean? When a file is cancelled by the trustee it is taken off calendar. This can be due to a reinstatement or pay off of a loan. When a file is rescheduled for foreclosure a new Notice is issued Reinstatement This is when a delinquent loan is brought to a current status
What is a payoff? It is the full payment of an existing loan or other lien.
What is a posting? It is public notification by attaching to a post, wall, door, or by displaying in a public place.
What are the procedures for postponements?
The sale commences at the time and location specified on the Notice of Sale. When the sale postpones the new date, time, location, and reason for the postponement is done by public announcement.
What is required in order to bid at a trustee's sale? In order to bid at sales you must qualify with the auctioneer at the time of sale with cash, a cashier's check drawn on a state or national bank, a check drawn by a state or federal credit union, or a check drawn by a state or federal savings and loan association, savings association, or savings bank, or a cash equivalent which has been designated in the notice of sale as acceptable to the trustee prior to, and as a condition to, the recognizing of the bid at the time of sale in the amount the bidder is willing to bid up to. This is competitive bidding and will be sold to the highest bidder. The first bid being offered on behalf of the beneficiary, which is approximately the amount specified in the Notice of Sale at the time of the publication. Most states require the full amount at the time of the sale.
Where are trustee sales conducted? All sales are conducted in the state and county where the property or some part of the property is situated and is made at a public auction to the highest bidder.
What is an irrevocable bid?
It is something that cannot be revoked or recalled. In bidding every bid shall be deemed an irrevocable offer until the sale is completed, except that a subsequent bid by the same bidder for a higher amount shall cancel that bidder's lower bid.
Who do I make the cashier's checks payable to? Make check(s) payable to the person who is attending and will bid at the sale. Generally check amounts are determined by the bidder and are often made in several increments. One close to the amount of the opening bid and several others that amount to the total the bidder is possibly willing to bid up to. When the checks are incremental and you are the successful bidder you can endorse checks to the trustee closer to the final bid amount. The trustee is the responsible party to refund the difference. Refunds can take up to two weeks. What is an Assessor's Parcel Number (APN)?
This is the number issued by the County Assessor to identify property and is used by the County Tax Collector on the tax bill.
What is an REO? Real Estate Owned Property, most commonly refers to property owned by a lender from foreclosure or mortgages or trust deeds.
What is "Caveat Emptor"?
"Let the Buyer Beware" legal maxim stating that the buyer takes the risk regarding quality or condition of the item purchased.
Can I purchase this property from the trustee prior to sale?
No, the borrower/trustor is the legal owner of the deed of trust (property) that is in foreclosure until the beneficiary's "power of sale" has been executed. The trustee's (who acts on behalf of the beneficiary) purpose is to secure the outstanding debt or its collateral. The legal owners of a property are still entitled to any rights to sale and/or negotiate the sale of a property prior to the foreclosure sale commencing.
Information provided by Fidelity A.S.A.P., FIS Agency Sales and Posting