Notice of sale: A notification given before the foreclosure sale of property.
Notice of sale: A notification issued by the bank prior to a foreclosure sale, which is usually posted in a public space and/or on the property.
Notice of Sale: Responding to an Imminent Foreclosure Notice
The notice of sale is a legal notification that must be sent by the bank prior to the planned sale of the mortgaged property due to foreclosure.
The notice of sale, which confirms the sale of the property, usually lists the address, as well as a legal description of the property, and the date, time, and location of the foreclosure sale. Often the notice of sale is recorded in the county land records, sent to the homeowner, published in a local newspaper, and visibly displayed on the property and/or in a public place.
In California, for example, “if you do not pay what you owe, a notice of sale is recorded at least 90 days after the notice of default is recorded. The notice of sale states that the trustee will sell your home at auction in 21 days.
“At least 21 days after the date when the notice of sale is recorded the property can be sold at a public auction. The successful bidder must pay the full amount of the bid immediately with cash or a cashier’s check. The successful bidder gets a trustee’s deed once the sale is complete. The lender usually bids at the auction, in the amount of the balance due plus the foreclosure costs. If no one else bids, your home goes to the lender,” according to the Judicial Council of California.
In Washington, where non-judicial foreclosures are often employed, “the notice of sale may not be sent if a mediation is scheduled in accordance with the Foreclosure Fairness Act.”
“Assuming the loan/home is eligible, a homeowner has 20 days from the recording of the notice of sale to request a mediation pursuant to the Foreclosure Fairness Act. If the homeowner does not wish to attempt to modify the loan or undertake a short sale or deed in lieu of foreclosure, the foreclosure trustee may conduct a public sale of the property not sooner than 90 days from the issuance of the notice of sale,” says attorney Jeffrey Foster, the founding partner of Foster Law Offices in Edmonds, Washington.
The Washington Foreclosure Fairness Act, which is modeled on similar statutes in other states, allows homeowners to effectively delay foreclosure by participating in a mediation program, and exploring other options to foreclosure.
“The Foreclosure Fairness Program provides homeowner foreclosure assistance by offering free housing counseling, civil legal aid, and foreclosure mediation. The program, created by the 2011 Foreclosure Fairness Act, helps homeowners and lenders explore possible alternatives to foreclosure and reach a resolution whenever possible. The Act requires lenders to notify homeowners, prior to initiating foreclosure, of the availability of foreclosure counseling and the potential for mediation, and to participate in mediation with homeowners who have been referred to the Mediation Program,” according to the Washington Department of Commerce.
Homeowners facing foreclosure in other states are advised to consult their own mediation and counseling programs before agreeing to a foreclosure.