Notice of Default
Since March of this year I have been keeping track of the homes here in Prairie Oaks that are getting a Notice of Default (NOD) filed, put up for auction or sold into an REO situation. As of now it looks like we have three homes here in Prairie Oaks that have had a NOD filed on them. A NOD is the first step in the foreclosure process.
The time frame after the NOD is filed is 90 days for the owner to try to “cure” the default. This period is called the redemption period. After the 90 days, there is the publication period. This is when the “Notice of Trustee Sale” is filed and published(in a newspaper) once a week for three weeks. The Notice will state that the lender/trustee will sale the property at auction in 21 days. The auction date is determined by adding at least 20 days to the date the Notice of Trustee Sale was first published.
In theory the time frame for foreclosure is 121 days. However with timing publications etc, it can run closer to 140 days after the NOD was filed. That would be streamlined.
Currently I am seeing more NOD’s being filed, but after 90 days I am not seeing the Notice of Sale. From what I hear, the lenders/trustees are so overburdened with all of the defaulted loans, they can’t keep up. There is a backlog of homes that will have to go through the foreclosure process.
Time will tell to see how long it will take to foreclose on all of the properties that have to be foreclosed on.