How does the basic foreclosure process work?  

The foreclosure process is generally commenced when the borrower becomes delinquent. Delinquent status depends on the terms of the Note, the lender's internal policies and the requirements of any investor. Generally, the foreclosure is commenced when a loan becomes three months delinquent.

The foreclosure process generally begins by the holder of the Note appointing a trustee to file a Notice of Default with the county recorder of the county where the property is located. From the date of the filing of the notice of default, the borrower has 3 months to reinstate or payoff the loan. At the conclusion of the 3 month reinstatement period, if the loan has not been brought current, a foreclosure sale is set. A Notice of Trustee's Sale is sent to the borrowers and posted on the property.

It is also posted at the County Recorder's Office of the county where the property is located and published in a newspaper having general circulation in the county. The actual foreclosure sale is held at the time and place specified on the Notice of Trustee's Sale, generally an active county courthouse of the county where the property is located. The trustee appointed by the note holder, or an attorney representing the trustee, conducts the foreclosure sale. The minimum bid on the property is set by the lender foreclosing.

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