Foreclosures – Process In California
Foreclosures and short sales will be around San Diego for a few years in higher than normal percentages. Each San Diego real estate market is different so please check out the individual community for current foreclosure numbers and listings. The first step of the foreclosure process is the Notice of Default or NOD. This is basically a public notice that the homeowner is behind on their loan payments and during this period the homeowner may sell at a short sale, to an investor, refinance, or sell by a traditional method if they have enough equity. If you want to know more about the special foreclosure process in California please visit this post. Many lenders are delaying the notice of default causing the speculation of the shadow inventory.
The notice of the trustee sale can be recorded 3 months after the notice of default. The initial auction date can be just 20 days after the Notice of Trustee sale has been recorded.
Auction properties have had a Notice of Trustee Sale filed setting an auction date, and have not yet been sold or cancelled. Investors can purchase the home at auction; and Realtors® and Lenders can monitor their client’s properties, to ensure their listing and loan activities are completed before the auction. Once the auction date has been set there are multiple possibilities including being postponed, sold to bank, sold to a 3rd party (investor), or cancelled. Frustrating for the investor purchasing on the court house steps is how many auction dates are postponed. If you would like to see the process of a trustee sale here is an excellent video by Foreclosure Radar.
If the auction does not result in a sale the bank takes ownership known as real estate owned or REO. Most of these properties are marketing by REO specialists and will show up in the San Diego Regional MLS system known as Sandicor. Foreclosures tend to be pretty aggressive on asking prices to sell the home. Check here for the latest foreclosures, bank foreclosures for sale, or short sales that are in Sandicor MLS.
To search for the latest pre-foreclosures, notice of trustee sales, and auction dates use the complimentary Foreclosure Radar search below: