Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice. The foreclosure process can end one of four ways:

  1. The borrower/owner pays off the default amount to reinstate the loan during a grace period known as pre-foreclosure.

  2. The borrower/owner sells the property to a third party during pre-foreclosure, allowing the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.

  3. A third party buys the property at a public auction at the end of the pre-foreclosure period.

  4. The lender takes ownership of the property, usually with the intent to re-sell. The lender can take ownership through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction.

Foreclosure Buying Opportunities

The foreclosure process offers three bargain-buying opportunities, represented by three different property statuses.

  1. Buying during pre-foreclosure (NOD, LIS)

  2. Buying at public auction (NTS, NFS)

  3. Buying bank-owned properties (REO)


Realty Ventures follows all NOD's (Notices of Default),Trustee Sales (Foreclosures) and REO's in the Santa Clara and San Mateo counties. This is public information that is compiled from county records. We attend trustee sales, purchase viable properties and have valuable information about upcoming properties that will be sold either through banks or private third parties.



If you're interested in learning more about investing in foreclosures please contact us at sales@realvent.com