When a homeowner receives a Notice of Default this begins the foreclosure process. This notice is recorded after the borrower fails to meet the terms of their loan. Many things can contribute to a homeowner falling behind on their mortgage payments, such as an illness, loss of job, divorce, etc. The recorded date of the NOD is when the 90 clock starts ticking. The owner will have 90 days to sell the property or to pay the necessary fees & back payments to their lender.
Banks do not like to have to foreclose on any property, so we always encourage property owners to be in constant contact with their lender before a Notice of Default is ever sent out. Many times lenders can work with you on loan modifications and etc. to help you stay in your home. Don't ignore the phone calls from your lender if you can help it.
Putting the property up for sale with plenty of time for closing is an ideal situation and will ensure the owner will keep the equity they have in the property. Waiting beyond the 90 day period will then start the initial auction date in motion, which will be just 20 days after Notice of Trustees Sale is recorded.
Trustee's Deed will then transfer property to winning bidder at auction. Best case is that the property is sold for all cash and can close quickly within that 90 day period. My advise is not to wait to speak with a real estate professional. If you know there is no way you can make up the back payments and need to sell, the sooner to get the house on the market the better.
This is such a difficult situation for anyone to go through and I assure you that as your agents we will make it as painless as possible. Support and guidance is people need when enduring the foreclosure process. We have experience helping clients in this situation and let us know if we can help you.