In California, as in other states, understanding the reverse mortgage foreclosure timeline is essential for homeowners who have taken advantage of this financial option. A reverse mortgage can provide financial relief for seniors, but it’s vital to be aware of the potential risks and consequences associated with it. In this blog, we’ll explore the reverse mortgage foreclosure timeline in California and what you should keep in mind.

1. Initial Default

The reverse mortgage foreclosure process typically begins when the homeowner defaults on certain loan requirements. Common reasons for default include such as:

• Failure to pay property taxes
• Neglecting to maintain homeowner’s insurance
• Not living in the home as the primary residence

2. Notice of Default

After the initial default, the lender will issue a Notice of Default (NOD). Thus, this formal notice informs the homeowner that they are in violation of the loan terms and provides a period to cure the default. In California, lenders typically give homeowners 30 days to address the issue.

3. Notice of Intent to Foreclose

If the default is not resolved within the given period, the lender will issue a Notice of Intent to Foreclose (NOI). This notice informs the homeowner that the lender intends to foreclose on the property. The homeowner has 30 days from the NOI to request a loan repayment plan or extension, which may help resolve the default.

4. Foreclosure Sale Date

If the default is not resolved, the lender will schedule a foreclosure sale date. In California, this sale typically occurs no sooner than 21 days from the NOI. The lender auctions off the home and recoups the outstanding loan balance and costs from the sale proceeds.

5. Eviction

If the home is sold at auction, and the homeowner has not arranged to stay or repurchase the property, the lender may need to proceed with eviction. It’s essential to know your rights and options during this phase of the foreclosure process.