Chula Vista Foreclosures
Chula Vista is the second largest city within San Diego County with an estimated population of 231,305 residents. The City covers approximately 50 square miles along the San Diego Bay and is surrounded by National City, the City of San Diego, and the unincorporated areas of the County. Two major north-south freeways, Interstate 5 and Interstate 805 traverse Chula Vista. The area west of the I-805 “western Chula Vista” is built up and includes redevelopment areas. The “eastern area” is comprised of several master-planned communities in various stages of approval and implementation.
Chula Vista Foreclosure Process
The City of Chula Vista must follow the California Foreclosure guidelines. California is a non-judicial foreclosure state. The foreclosure process begins with a recorded Notice of Default (NOD), which is a public notification that the borrower has fallen behind in the monthly mortgage payments. If the default is not cured, or the loan renegotiated or replaced, the NOD is followed by a Notice of Trustee’s Sales (NOTS/NDS) after a minimum of three months.
The actual Trustee’s Sale can not occur less than 20 days after public notice. The Trustee’s Sale is a public auction, at which anyone may place a bid, including the lender and any junior lien holders. The foreclosure process may be stopped if the default is cured 5 days in advance of the sale date. If no one bids, and the foreclosure process was not stopped, title (ownership) of the property reverts to the lender as REO property (Real Estate Owned property). The typical foreclosure process takes at least 117 days in California.
Abandoned Residential Property
The City of Chula Vista adopted an Ordinance which requires mortgage lenders to inspect defaulted properties to confirm that they are occupied. If a property is found to be vacant, the program requires that the lender exercise the abandonment clause within their mortgage contract, register the property with the City and immediately begin to secure and maintain the property to the neighborhood standard.
What is Foreclosure
Most people buy a home by borrowing part of the purchase price usually from a bank or a mortgage company. Other times, a homeowner borrows money against the equity in the property after the home is purchased, and this is called a “home equity loan.” Sometimes people refinance their mortgage loan and combine it with a home equity loan. In all these situations, the lender usually has a lien against the home to secure repayment of the loan. When a buyer fails to make the payments due on the loan (defaults on the loan) the lender can foreclose, which means that the lender can force a sale of the home to pay for the outstanding loan.