How does a trustee sale work in California?

It is used when there is a power-of-sale clause in the deed of trust that secures the mortgage loan by giving the trustee the authority to sell the home to pay off the loan balance at the request of the lender if the borrower defaults (fails to make payments).

What is the difference between a trustee sale and a foreclosure?

A trustee sale usually occurs when the homeowner is in default on their mortgage, resulting in a foreclosure. However, if no bidder is found for the property at the foreclosure auction, the lender will officially take over ownership and go through the process of trying to sell the property more traditionally.

How do I close a trustee sale in California?

You can stop the foreclosure process any time by bringing your payments current all the way up until 5 days before the sale. After that, it’s up to the lender to decide if they want to accept payment or continue with foreclosure. You can however, payoff the entire amount all the way up until the point of the sale.

How long does the foreclosure process take in California?

It takes several months for a lender to foreclose on a California property. If everything goes according to schedule, the process typically takes approximately 120 days — about four months — but the process can take as long as 200 or more days to conclude.

Who is the trustee for a foreclosure in California?

When a deed of trust is signed, a trustee will be appointed who will act as the lender’s representative during a foreclosure sale. While in many states lenders appoint trustees themselves, in California title companies generally act as trustees.

How long does it take for bank to send notice of trustee sale?

After you’ve received a Notice of Trustee Sale, the bank can set a date for the auction. It has to wait at least 20 days after the Notice of Trustee Sale is sent to you. The sale may be postponed by a court or by the bank for up to a year, after which point they’ll need to send you a new Notice of Trustee Sale in order to send the house to auction.

Can a successor trustee of a trust sell a property?

A successor trustee seeking to sell real property on behalf of a trust may have to sign an affidavit indicating that they have succeeded the original trustee. In any case, a trustee should obtain as comprehensive a chain of title as possible, to ensure that the trustor conveyed good title to the trust.

Can a trustee of a revocable trust in California?

The trustee of a revocable trust is not obligated to provide the Transfer Disclosure Statement (TDS) required in most California residential real estate transactions, provided that the trustee is a “natural person,” meaning not a corporation or other organization.