If you’re checking out Irvine homes for sale to locate one in foreclosure, it’s important to understand how the non-judicial foreclosure process works. In non-judicial a foreclosure proceeding, the lender or trust the can initiate foreclosure proceedings on a property without going to court by invoking the power-of-sale clause in the mortgage or deed of trust. Twenty-two states and the District of Columbia allow a non-judicial foreclosure proceeding. Five states permit both a judicial and non-judicial foreclosure, depending on what kind of mortgage or deed of trust exists. In situations where a non-judicial foreclosure is allowed, the borrower can locate the power-of-sale terms in his mortgage or trust paperwork.
A non-judicial foreclosure begins right after the notice of default is sent to the borrower, mortgagor, or trustor, and then filed at the local county records where the home is situated. Once the notice of default is filed, the homeowner has about three months to cure the default and reinstate the loan. The actual time period allowed to reinstate a loan is different for each state, but three months is a typical time frame.
The public trustees sale date is set about 20 to 25 days prior to the end of the reinstatement period. The notice of trustee’s sale is also recorded with the county or counties were the property is situated. The notice of trustee’s sale is also forwarded to the borrower and advertised to the general public.
At a public trustee’s sale, the property is sold to the person with the highest bid or reverts back to the lender if there are no qualifying bids from the general public. If the borrower has statutory redemption rights after the sale, they will be given time to redeem the property. In order to redeem the property, the borrower must cure the entire balance of his or her loan, plus all accrued late fees, penalties, lawyer fees, and trustee’s costs.
For a complete list of Irvine foreclosures, contact these local Irvine Realtors to assist you.