Walk It Through: The Notice Of Default
A trustee's sale, 120 days' notice, a cure until five days before, and what a sale ends.
Several payments behind on a home loan secured by a trust deed, the owner learns a notice of default has been recorded.
Two things a person in this spot might do. Picking one shows what the law says about it.
One home under a trust deed. The foreclosure avoidance process, the contents of the notice of sale, a tenant's rights after a sale and judicial foreclosure are not worked through here.
A practice walkthrough, not a prediction of how any real one will go. Legal information, not legal advice.
Words this turns on
Terms with a legal meaning that is narrower than the everyday one. Each links to the definition and the authority behind it.
- Curing the defaultWhere the default is missed payments, paying what would then be due had there been no default, plus the costs of enforcing it, at any time prior to five days before the date last set for the sale. The trustee then dismisses the proceedings and the loan is reinstated as if there had been no acceleration.
- Default judgment for possessionA judgment for possession for the landlord, which is entered only if the landlord appears at the first appearance and the tenant does not.
- DeficiencyThe part of the debt a foreclosure sale did not cover. An action for one may not be brought after a trustee's sale, or after a judicial foreclosure of a residential trust deed, with the narrow exceptions the section sets out.
- Foreclosure by advertisement and saleA trustee's foreclosure of a trust deed without a lawsuit, allowed only if the trust deed and any assignments are recorded, there is a default, a notice of default electing to sell has been recorded in the county, and no action to recover the debt is pending.