December 10th, 2007 5:33 PM by Lehel Szucs
Simply stated, a foreclosure is when a lender forces the sale of a piece of property to repay a borrower’s delinquent debt. During this forced sale, or "Foreclosure", the bank must follow strict laws, adhere to statutory timelines, and complete certain tasks which all together make up the 3 stages of foreclosure.
The 3 Stages of Non-Judicial Foreclosure in California Are:
Pre-Foreclosure (NOD) - This is when the bank has formally started the foreclosure process by filing a Notice of Default (NOD), making it public record. Typically a homeowner has missed at least three payments by now.
Trustee Sales (NTS or NOS) - This is the sale of the property at auction to satisfy the delinquent debt.
Real Estate Owned (REO's) - This is when the property reverts to the lender and becomes part of inventory when it doesn't sell at auction.