Hi, I’m Toni Patillo with Toni Patillo and Associates, your leading Venice short sale agents. Today we would like to talk about the different stages of foreclosure. It starts with something called pre-foreclosure. This is when the borrower can bring their mortgage current; pay any late fees and penalties. There is also something called a forbearance. The borrower will have missed payments and missed enough to receive a missed payment notice from their lender. Remember, once you choose the right Venice short sale agent to work on your property, they will be able to go over all of your options based on your specific situation. Another thing that can happen is the homeowner can receive a notice of default. This is a public document that states the borrower is in default and legal action may be taken such as a foreclosure. A notice of sale is next. This is mailed by the borrower 21 days prior to the scheduled sale date. Your Venice short sale agent should also publish it in the newspaper within the county. A foreclosure sale will be conducted at a public auction for cash to the highest bidder. One key point is if the lender is the winning bidder, the borrower could have up to one year to redeem the property.
There is a difference between a judicial and a non-judicial foreclosure. In a judicial foreclosure it is a foreclosure that passes through the state of district court. The homeowner has to default on the mortgage and the lender can file a claim to recover unpaid balance of loan. The court will decide the case which can typically take 4-6 months or up to a year. Your Venice short sale agent should be able to explain the difference between the stages of foreclosure. The non-judicial foreclosure is by trustee sale. If the homeowner defaults the lender can notify the trustee to start the foreclosure procedures. Then the trustee can sell the property and transfer the proceeds to the lender. This trustee sale is usually faster that a foreclosure by judicial sale because they don’t have to wait for the courts to decide the case. Again, I’m Toni Patillo, your leading Venice short sale agent and I’m here to answer any questions you have about short sales or foreclosure. We would love to be your Venice short sale agents and help you make the best decision for your situation.