To Start a Foreclosure

  • Get acquainted with the non-judicial foreclosure process
  • Complete required documents
  • Complete, sign and notarize forms
  • Send documents, forms and  deposit.

Download Forms

Non-Judicial Foreclosure Checklist

An Introduction to Non-judicial Foreclosure

California Civil Code permits a beneficiary (lender) to exercise the Power of Sell under a deed of trust when a Trustor (borrower) defaults on a loan secured by real properties.  Simply put, a beneficiary may sell the trustor's real property (collateral) at a public auction to satisfy an indebtedness without court actions.  LFS acts as the designated Trustee to carry out the non-judicial foreclosure on behalf of the beneficiary. 

A valid foreclosure requires the presence of the following elements:
i) A promissory note and matching deed of trust of even date, ii) bona fide monetary defaults by a trustor, and iii) compliance with statutory requirements regarding notices, timeline, and processes.  A non-judicial foreclosure in California takes approximately four months to complete. It is a complex and time-consuming process that is best left to a qualified professional to handle.

Upon reviewing the original loan documents and obtaining authorization from the beneficiary, LFS will prepare and record a Notice of Default and thus sets the foreclosure proceeding in motion. LFS will take charge of every step of the process until the loan is either reinstated or paid off, or the foreclosing beneficiary acquires title to the property at the trustee's sale.

Depending on the way loans are structured, there are many variations to the foreclosure process. LFS is capable of processing foreclosures of all lien types and complexities, including conventional loans, FHA loans, mixed security loans, third-party pledge loans, construction loans, all inclusive deeds of trust, land contracts, and HOA assessment liens.

To complicate matters even further, the actions and inactions by a host of players can alter the course and final outcome of a foreclosure. A trustor may reinstate or payoff the delinquent loan or elect to file a bankruptcy or a lawsuit to stall the foreclosure.  A senior lien holder may eliminate the interest of junior lien holders in the process of its own foreclosure. To address these dynamic issues facing beneficiaries, LFS also offers several related services to guide our beneficiaries through the chaos and turmoil.

Get Acquainted with the Foreclosure Process

A non-judicial foreclosure in California involves three major steps:
  1. Notice of Default: The NOD sets a time limit of no less than 90 days from the NOD recording date for a borrower to cure delinquency by either reinstating or paying off the loan.
  2. Notice of Trustee's Sale: The NOS sets the place, date and time to sell the borrower's collateral at a public auction to satisfy the debit if loan default is not cured before then. 
  3. Trustee's Sale: The borrower's collateral is sold at a public auction to the highest bidder for cash. If no one bids at the sale, the foreclosing beneficiary acquires title to the property.

List of Required Documents

  1. Evidence of Debt: Original Promissory Note,  or surety bond in the even of lost note.
  2. Security Instrument: Deed of Trust, All-inclusive Deed of Trust, or Land Purchase Contract, Assignment of Deed of Trust.
  3. Any modifications to Note and Deed of Trust, if applicable.
  4. Payment records.
  5. Guaranty and Continued Guaranty.
  6. Records of payment received.
  7. Security Agreement and UCC filing.
  8. All known addresses to borrower.
  9. Copy of cancelled checks and any advances made to pay tax, insurance or senior liens, and legal expenses. 
  10. Copy of balloon payment notice and demand letters required under documents.
Complete, Sign, and Notarize Forms
  1. All named beneficiaries must sign the Request to Prepare Notice of Default and Substitution of Trustee
  2. The Substitution of Trustee needs to be notarized.
Send Documents and Deposit to LFS
  1. By Mail: P.O Box 92086, City of Industry, CA 91715
  2. By Fax (626) 579-2524
  3. By Email: [email protected]