The cure: At any time prior to sale date, if a party is entitled to cure, the Public Trustee will notify the foreclosing lender and request a written statement of the amount due to cure. The borrower will need to file with the public trustee a notice of intent to cure. These amounts normally include the past due sums, the late charges, costs of the foeclosure to date incurred by the foreclosing leneder, interest at both the original rate and in the appropriate situations default interest which is often at a much higher rate than the original loan rate. In other words, this is the amount you need to have your loan placed in a current state with the lender.

THE SALE: This is the event when your property is placed for sale. The sale is a result of the initiation of the foreclosure action by the trustee. The sale will be held promptly at the time and place set forth in the notice of such sale. The notice is sent to the borrower and the land owner. The public trustee will read aloud the notice of the sale and call for bids. The lender's bid will be what the lender believes the property is worth or often it is the amount of the total debt owed to the lender along with its costs of the foreclosure up to the date of sale. If the lender bids in the amount of the debt that is owed to the leneder by the borrower, the real property is then substituted for the debt and the debt is then discharged since it is replaced by the real property. If the lender bids less than the amount of the total debt, this is called a deficiency bid and the borrower may face further action , such as a law suit, to collect the difference. In the event of such a deficiency bid the trustee will indicate the amount that is still due from the borrower and then credit the amount of the bid made at the sale and show the amount remaining, in other words the deficiency. While there are no known statistics as to how many deficiency bids are made, it is commonly thought that most bids are for the full amount of the debt and therefore no deficiency.

THE RIGHT OF REDEMPTION: Redemption is allowed by first giving the 15 day prior notice and by paying to the public trustee all of the amounts bid at the foreclosure sale and allowed costs. This is in contrast to the right to cure which allows you merely to bring the loan current and to pay the costs. After the sale date, the only right to retain the property is redemption which requires that you pay the entire amount of the loan and allowed costs.

THE FORECLOSURE TIME FRAMES:

The time frames come into play when the lender declares the debt in default or if other agreements in the deed of trust have been violated. The process is started with the recording of the Notice of Election and Demand ("NED") for Sale.

A. Within 10 working days of receipt of the NED the public trustee commences the foreclosure action by recording the NED in the office of the clerk & recorder.

B. Within 20 days after the recording of the NED the public trustee will mail the borrower/land owner a statement that either the owner's right to cure must be filed with at least 15 days prior to the sale date and the notice will explain that if the borrower/owner wishes to redeem must file its notice to redeem 15 days before the expiration of the owner's/borrower's right of redemption expires.

C. The sale date will be not less than 45 days nor more than 60 days after the the recording of the NED. The successful party at the sale receives a certificate of purchase, but not a deed since the landowner has additional time to reclaim the property. This right to reclaim the property is called redemption. After the sale date the owner is still able to possess the property.

D. The owner in the case of residential property has 75 days after the sale date to redeem the property and 180 days for agricultural land. The owner must have first filed a notice of intent to redeem no less than 15 days before the expiration of the applcable redemption time. In order to redeem this requires the payment of what the property was sold for at the sale plus allowed costs. If redemption is made by the owner, it annuls the foreclosure sale.

E. After the redemption period expires and no redemption is made the deed to the property then vests to the party that was last to redeem. The public trustee will issue a public trustee's deed.

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