Hello everyone:

Back on-line after a few days lapse, also busy wrapping up my latest blog about an important question that every homeowner asks about short sales : is it really cheaper to buy a short sale listing?

Moving on to the topic of the day. I presume that many of you know by now that the term “foreclosure” refers in fact both to  the status of a home in foreclosure but also to a process, which can be split in four distinct phases as follows:

1. Pre-Foreclosure : This period is the phase that precedes the sending of the Notice of Default. The foreclosure process has not started. At this point, homeowners have just missed a payment and lenders will notify you with a Breach Letter stating that you are in breach of your loan/mortgage contract.
2. Foreclosure Phase I : This phase starts and ends with the recording of the Notice of Default aka NOD
3. Foreclosure Phase II : If after 85 day following receipt of the NOD you did not “reinstate” your loan, a Notice of Sale (aka NOS) is issued and recorded. This phase is the actual “short sale” phase as this is the time during which homeowners will attempt to short sell their home.
4. Foreclosure Phase III :  Typically, within 14 days of the NOS, the lender will hold a public sale or auction to sell the house. This stage is known as the Foreclosure Sale period. If your home does not sell, the lender will become involuntarily the owner of your home. The property becomes a Real-Estate Owned property (aka REO)

I hope that the information is useful to all of you out there faced with foreclosure in the Bay Area.

Feedback and comments most welcome. Do not hesitate to call me directly (408-717-2575) for any additional information.

Sophia Delacotte
Your Realtor in Almaden Valley

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