Start A Foreclosure
The foreclosure process can begin when a Trustor is in default, except in the case of an owner-occupied property of between 1 and 4 units. In the case of an owner-occupied property of between 1 and 4 units due-diligence must be done first and unless otherwise stated in the Note or Trust Deed a Trustor can be in default for any of the following reasons: Missed payments, Defaulting on a Senior Trust Deed, Delinquent Property Taxes or non-payment of Property Insurance.
The following link is the California Statute which shows the due-diligence requirements: Section 2923.55
A Note and Trust Deed are required to start a foreclosure. It is important to understand the terms of the Note and Trust Deed. They sometimes determine when the foreclosure process can begin. The note holder and Trustor must abide by the terms of both documents..
When starting a foreclosure it is important for the Trustee to know the current principal balance, the amount of each payment and the number missed, amount of each late charge and the number due. Also any advances made by the beneficiary such as payments to senior liens, property taxes, insurance and legal fees. In addition, the current interest rate, if payments are interest-only, what day of the month payments are due and how many days in the grace period.
Notifying The Trustor
The Notice of Default and the Notice of Sale must be mailed through the U.S. Postal Service to the Trustor. Any addresses for the Trustor that are known should be used when mailing these notices. These addresses should be provided before the foreclosure is started. If any additional addresses are discovered during the foreclosure process they should also be provided.