Pre-Foreclosure
- Homeowner falls anywhere from 30 to 90 days late on their payments.
- Lender decides to foreclose and elects to foreclose with the Public Trustee on their Deed of Trust or through the courts judicially on their Promissory Note.
- Attorney hired and documentation sent from lender.
- Attorney prepares Mailing List and all documentation for presentation to the Public Trustee.
- Attorney sets hearing for Rule 120 Order that authorizes Public Trustee to auction property if no cure occurs before sale date – Public Trustee must have prior sale.
Cure Period
- Notice of Election and Demand (NED) recorded by the Public Trustee within 10 working days.
- Determination made by Public Trustee if property non-agricultural or agricultural within 10-20 days – based on legal description of property.
- Sale date set from NED recording date:
- 110-125 days for non-agricultural
- 215-230 days for agricultural property.
- NED and Combined Notice sent to owner, any guarantor on the note, and occupant only Notice for Intent to Cure must be filed 15 days prior to sale date
- 45-60 days prior to sale, NED and Combined Notice sent to all parties on Mailing List
- Sale date published for 5 consecutive weeks prior to sale
Sale Occurs & Redemption Begins
- Certificate of Purchase to highest bidder recorded by Public Trustee
- No owner redemption period
- Any junior creditor with lien recorded prior to NED or with any involuntary lien such as a judgment, HOA lien, mechanic’s lien or IRS lien that records after the NED, can file a Notice of Intent to Redeem within 8 business days
- 1st junior creditor: 5-19 business days to redeem
- 2nd or after: 5 business days to redeem
- Redemption prior to 12 noon on last day
- If junior creditor redeeming, Certificate of Redemption and Public Trustee’s Deed
- If no redemption, Public Trustee’s deed to holder of the Certificate of Purchase or any assignee
- All other liens no longer affect property after Public Trustee’s Deed unless HOA, mechanic’s lien(s), municipality lien(s), taxes, omitted party or senior lien(s)
