All Forum Posts by: Nelly Barskaya

 You could buy out the first lender and then eventually foreclose. There is a process for foreclosing that varies by state. One month late in California is not enough to foreclose. You have to have an attorney or or authorized entity do the foreclosure for you. 

Under federal law, the lender usually can't officially begin a foreclosure until the borrower is more than 120 days past due on payments.

So Generally you send a 30 date late, a 60 date late, a 90 day, a 120 day late then you send a notice of intent to foreclose and if the loan isn't brought current in another 30 days after that you can set an auction date.

CA may have changed some of the process over the years, so a local real estate attorney can guide you from there. 

If you start a foreclosure when in second position you end up having to pay off the first loan & HOA fees & unpaid taxes & assessments anyway.