Trustee's Sale Time
Line
Easily said the minimum time frame for
a trustee's sale is 3 months 21 days. But let's break that
down.
Assume you missed the first payment on
January 1st. The steps are as
follows:
- You miss the payment January 1st.
- The beneficiary, (lender) instructs
the trustee to file a Notice of Default.
- In 90 days, if no payments or
arrangements are made the lender will instruct the trustee
to file a Notice of Trustee's Sale.
This notice state that in 21 days the property will be
auctioned off at the courthouse steps.
- The homeowner, (trustor)
has until 5 days before the Trustee's sale occurs
to bring the loan current. Although he can appear
at the auction with the full amount due and keep the
property.
So based on the above scenario and
assuming that the Notice of Default is filed on February
1st. the trustees sale would occur on or around May
20th.
But as we mentioned that is the
minimum time frame. Lenders rarely file the notice of
default right away after the first missed payment.
Usually it will be after the third missed payment, but
sometimes as late as the sixth missed payment. Meaning
that given the above time line you are probably realistically
looking at losing the property sometime
between August and November. Don't count on this
though, because even though the lender does not want to take
the house except as a last resort, we are seeing more and more
of them moving their time tables up as soon as they are
certain that the home will be foreclosed upon.
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