When a home owner has missed at least 2 payments on their home loan, they are in default of their loan. If the Los Angeles home owner signed the contract to get their home loan between 2003-2007, the lender is required to call them or reach them in some way to ask why they have missed payments. The lender is also required to ask what they can do to help. This phone call must start at least 30 days before the foreclosure process starts.
The foreclosure process for all home loans in Los Angeles California is:
• Notice of Default- The home owner receives a notice of default in the mail telling them what they owe plus fees. In this mailing there is a declaration from the lender stating that there were previous attempts to reach the home owner without success. The home owner has 90 days from the time this notice is recorded to get current on their loan.
• Notice of Sale- After 90 days and no payments, a notice of sale is mailed to the home owner stating the date, time and place of sale of the home. This mailing needs to be done at least 20 days from date of sale. This notice is also posted on the property. The home owner has up to 5 business days before the sale to pay the past due amount. If the home owner does get current on the loan, the lender is required to record a Notice of Rescission and sale is canceled.
• Sale of Property-The property is sold to the highest bidder in an auction.