The Foreclosure Process
Notice of Default:
Foreclosure begins when you miss a mortgage payment. Technically lenders can foreclose as soon as soon as the payment is late, but this doesn't actually happen. After about 4 missed payments the lender will issue the notice of default (NOD). At this time a "trustee" is assigned to help execute the foreclosure process. Many people assume that it is too late to recover from foreclosure at this point but this is not the case. Lenders will usually work with borrowers in default after the notice of default is issued if the delinquent balance and any fees can be reinstated. Many lenders are also now offering loan modification agreements where new loans are issued to help pay back the delinqent amount. If the loan can not be reinstated, the foreclosure auction will take place in approximately four months.
Notice of Trustee Sale
If no steps have been made to sell the house, or bring the loan current the borrower will receive a "Notice of Trustees Sale." This notice is received approximately 3 months after the Notice of Default. The notice of trustee sale will be posted on the buyers property, delivered to the Cache County recorders office, and will be advertised in the legal section of the Logan Herald Journal for 3 weeks.
The Trustee Sale at the Cache County Courthouse
The Trustee sale or foreclosure auction takes place at the court house steps (135 N 100 W). This is a public auction, and anybody may bid on the house if they provide $5,000 certified funds and have means to pay the entire balance in full within 24 hours. Properties sold at the public auctions are sold as is and without warranties. At this point the prior home ownes will not only have the foreclosure on their credit, but they may also get a deficiency judgment showing that they still owe on any additional amount the lender did not recover.
The opening bid at the foreclosure auction is typically the amount owed plus fees of the primary mortgage. When the delinquent amount on the primary mortgage is more than the house is worth homes are typically not sold at the foreclosure auction.
