Unless the Note or Deed of Trust state differently, the lender may start the foreclosure process as soon as a payment is missed. However, practically it is prudent and courteous to wait at least a week before beginning the process.

A foreclosure will take, at the very least, about four months from start to finish. California law requires that the following time table be met:

Step 1:

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Three (3) months pass

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Step 2:

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21 days pass

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Step 3:

This process cannot be shortened. However, the lender can choose to lengthen the process. For example, the lender may want to postpone the sale date so that the borrower can obtain additional financing.

Typically, the Note and Deed of Trust require that the borrower pay the costs and expenses incurred during the foreclosure process. During the foreclosure process, the lender who initiates the foreclosure process will be invoiced for costs and expenses incurred. If the borrower desires to bring current their account or pay-off the debt entirely, he or she must pay all costs and expenses. Should the property go to sale, the costs and expenses will be paid by the buyer at the auction.

The borrower can pay any delinquent amounts to bring the loan current or may payoff the loan if a balloon payment is due. The borrower may refinance or even sell the property.

The auction usually occurs at the entrance of the courthouse or city or county building in the county where the property is located. The starting bid is the amount the borrower owes the lender. If no one bids for the property, the lender will become the owner of the interest being auctioned. If the property is desirable and is being auctioned at a good price, third-party buyers may show up to bid for the property. The lender may choose to bid for the property as well. Whoever ends up purchasing the property it is essential to remember that, generally speaking, while most junior liens will be "wiped out", the senior