C.N.A. Foreclosure Services, Inc. recognizes that foreclosure is a new and unfamiliar process for some investors. This summary page is designed to answer many of the commonly asked questions and to provide you with a brief overview of the non-judicial foreclosure process.

Due to the general nature of this information, we urge you to contact our office at (619) 297-6740 for assistance concerning your specific circumstances.

The foreclosure process can be divided into three phases. To explain the steps involved, we will briefly describe the following three phases of the process: Notice of Default, Notice of Sale and Trustee’s Sale .

The California Homeowners' Bill of Rights has impacted the Foreclosure Process. We encourage you to review the loss mitigation steps required before you start a new foreclosure.

Please contact us directly to start the Notice of Default.

Phase One: Notice of Default

Once the Beneficiary or lender's agent has determined that a default exists, due diligence has been completed  and satisfactory payment arrangements can not be made, it becomes necessary to proceed with filing a Notice of Default.

Typically, the default occurs when the borrower fails to pay mortgage payments. The investor may proceed with the Notice of Default (NOD) for other causes of default, such as failure of the Trustor to pay property taxes, allowing the fire insurance to lapse, not paying the entire loan balance at maturity or failing to make payments to a senior lien holder.

At time of default, the Original Note, Deed of Trust and any Assignments are forwarded to C.N.A. Foreclosure Services, Inc..  The Notice of Default is prepared and recorded by CNA as Trustee of the Deed of Trust. At this time, the Beneficiary advances the estimated Trustees’ costs and fees for the first three months of the foreclosure. The Beneficiary will include the fees owed to be repaid by the borrower when the borrower reinstates or pays off the loan. Should the property go to Trustee's Sale, the costs will be incorporated into the property.

The Beneficiary will receive a copy of the NOD and a Declaration of Default. The Declaration is completed, reviewed and signed by the Beneficiary, then returned to C.N.A. Foreclosure Services, Inc. to authorize the foreclosure.

Three months will lapse from the recording of the NOD until the next phase can commence. During this period, CNA will handle all of the required notification to all of the parties involved in the property. Be sure to provide CNA with all of the Borrowers' addresses. Certified and first-class mail notices are sent to the parties of record, which are known as 10 and 30-day mail. CNA handles all of these mailings. You or your loan servicer will continue to saervice the loan and CNA will forward to you any reinstatement requests. The Borrower may also contact you during this time to payoff the account or work out a repayment plan or loan modification.

Phase Two: Notice of Sale

Following the 90 day Notice of Default phase, the second phase can commence. In this phase, CNA prepares and records the Notice of Sale (NOS). This document sets the actual sale date, which is at least twenty one days later. The NOS is then posted on the property, posted in a public place and published in a newspaper of general circulation. CNA mails copies of this notice to all of the parties of record with interest in the property. The costs of publication charged by the local newspaper can be very expensive. The cost of Publication in the adjudicated newspaper is estimated at the Notice of Sale billing. 

The Beneficiary will receive a copy of the Notice of Sale , Bid Instructions and billing statement. The Bid Instructions are completed and returned with payment prior to the Sale.  The borrower can reinstate the loan up to five days prior to the Trustee’ s Sale . Generally, Beneficiaries accept reinstatement up to the actual sale date.

Phase Three: Trustee’s Sale

The Trustee’s Sale is a public auction wherein the property is sold to the highest bidder payable in cash at the time of sale. The Beneficiary has set the opening bid and has a full credit bid at the amount to cover expenses concerning the property. If the Beneficiary is the highest bidder at the sale the property reverts. Following the sale, C.N.A. Foreclosure Services, Inc. prepares the Trustee’s Deed Upon Sale. The Trustee’s Deed Upon Sale is recorded and it is the document that transfers the property into the name of the successful bidder at sale. The new owner may now take possession of the property. 

Please Note: This site is not intended to be a legal advice or legal reference, but an overview of the foreclosure process. You are encouraged to seek legal council and review the California Civil Code.