When a trustor (borrower) defaults on any obligation in a deed of trust, note or other contract secured by a deed of trust, the mortgagee (lender) has the right to declare a default and proceed with a nonjudicial foreclosure. In California, a foreclosure is commenced by the recording of a notice of default and election to sell with the county recorder’s office for the county where the property is located. The notice of default and election to sell is designed to provide notice to the borrower and any other interested persons that there is a default.
The notice of default, in California, also establishes the minimum period within which the default can be cured before the property can be sold through the power of sale. Most promissory notes and deeds of trust contain a provision that provides that in the event of a default the lender can elect to accelerate the payment of all sums of principal and interest that would be due and make an immediate demand for their payment.
Note, at least three calendar months must elapse after the notice of default is recorded before the trustee (lender’s agent) can proceed with the nonjudicial foreclosure sale.
For more information, contact Zachary D. Schorr of Schorr Law, APC, www.schorr-law.com, firstname.lastname@example.org, 310-954-1877