What happens with foreclosure; is that when they start considering Chapter 13?
Foreclosure is state specific, it varies state to state. California is what we call a non-judicial foreclosure state, meaning that the lender does not have to sue you to foreclose on you. Instead of mortgages in California, we have what are called Fugitive Trust. And what that means is there is a trustee who is appointed by the lender that will conduct the foreclosure sale. So, in California, it’s a two-step process. The first step is the issuance of the Notice of Default, which is a notice that you have defaulted on your mortgage and your lender intends to foreclose on you. That usually is issued if you are 90 days delinquent.