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Clovis Real Estate News

January 16th, 2010

Foreclosure Process for Clovis Homes

Overview of the Clovis Foreclosure Process

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If you’re struggling to make your mortgage payments on your Clovis home, you’re not alone. One of the most important things you can do is understand the foreclosure process in Clovis. Here’s a brief overview of the foreclosure process for Clovis homes to help you do just that:

When you bought your Clovis home it probably involved a “deed of trust,” which by its legal definition involves 3 parties:

Trustor (Clovis homeowner / borrower),
Beneficiary (lender / bank), and
Trustee (a neutral 3rd party receiving the right to foreclose).

The deed of trust usually includes a “power of sale” clause that gives the neutral 3rd party the legal right to enforce collection of the debt. Collection of the debt is ultimately enforced by lender / bank’s right to sell the Clovis home when the Clovis homeowner / borrower fails to make their mortgage payments.

Defaulting on one’s loan causes the start of “foreclosure”, the process by which the lender / bank takes over a Clovis home in order to recover their principal investment (remember, your Clovis home is still the bank’s until you pay it off fully). Once the Clovis home is either sold at auction or “repossessed” by the lender / bank, the former Clovis home owner must vacate at the discretion of the new owner.

When there is a power of sale clause in the deed of trust the non-judicial process of foreclosure is used. In a non-judicial foreclosure, the neutral 3rd party (trustee) must meet a few requirements before it sells the Clovis home. In comparison to a Judicial foreclosure, Non-judicial foreclosures are quick (it takes a minimum of 120 days or 4 months) because the trustee does not have to obtain a court order to foreclose, nor is court supervision required in order to sell the house, as is required in the judicial foreclosure process. The judicial process of foreclosure is used when a power of sale clause is not in the deed of trust.

In California, the time-line of non-judicial foreclosure begins when the trustee files a notice of default. This is a letter which is sent to the Clovis homeowner notifying him or her of their default of the loan. This notifies the Clovis owner of the intent of the lender / bank to follow through on their right to collect on the debt. The copy of the notice, which is recorded at the County Recorders Office in Fresno, is mailed to the Clovis home address. Recording of the notice of default occurs next and can take anywhere from 1 week to 3 or more months after a Clovis homeowner misses their first mortgage payment.

The next step is the filing of the Notice of Trustee’s Sale. No sooner than 90 days after the trustee records the Notice of Default, the Trustee must publish a notice of trustee’s sale in the Fresno Bee and simultaneously file that notice with the Fresno County recorder’s office. Then, no sooner than 20 days after the notice of trustee sale is filed, the Clovis home may be sold at public auction for the amount of the debt plus foreclosure costs. If no one bids at the auction, the lender / bank assumes ownership of the Clovis home and may sell it to recover their cash investment.

Clovis Foreclosure Help

If you’re struggling to make your mortgage payments, we strongly recommend that you consult an attorney and Clovis Realtor to discuss your options. Clovis foreclosures have a damaging effect on your credit for a period of at least seven years. The earlier you can address the situation, the better the overall result will be regardless of the outcome. We’re happy to address any real estate questions you may have if you’re facing a foreclosure. Just fill out the form below and we’ll point out what your options are and answer any questions you may have.

Clovis Real Estate − "The Clovis Home Experts"

This entry was posted on Saturday, January 16th, 2010 at 7:41 AM and is filed under Avoiding Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.