Save your Home and Credit – You have options

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Have you received a Notice of Default?

You are not alone…

 1 out of every 200 homes will be foreclosed upon.
– Mortgage Bankers Association

 Every three months, 250,000 new families enter into foreclosure.
– Mortgage Bankers Association 

 One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage.
– Mortgage Bankers Association

Six in 10 homeowners wish they understood the terms and details of their mortgage better.
– Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2005.

More than 6 in 10 homeowners delinquent in their mortgage payments are not aware of services that mortgage lenders can offer to individuals having trouble with their mortgage.
– Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2005.

 

An Overview of the Foreclosure Process in California

Avoid foreclosure


The foreclosure process in California is Non-judicial and set by state statue.  This means that the foreclosure process is handled entirely outside of court.

 

Stages of Foreclosure

Stage 1: Pre-Foreclosure

  • Borrower misses payments
  • Payment notices sent by lender

Stage 2: Notice of Default  (NOD)

  • A document made public that states that the borrower is in default and legal action may be taken (foreclosure).
  • In California a NOD is filed after a borrower misses three  payments.
  • 90 days after NOD is filed lender can initiate trustee sale.

 Stage 3: Notice of Sale

  • Mailed to the borrower 21 days prior to the scheduled day of sale.
  • Must also be published in a newspaper with the county.

Stage 4: Foreclosure Sale (Auction)

    • The sale is conducted by the trustee at public auction for cash to the highest bidder.
    • If lender does not sell it at the courthouse steps the property turns into REO. (Real Estate Owned/Bank Owned)

Consequences of Foreclosure

  • Credit Score: Your credit score could be reduced 300-400 points and will stay on your file for seven to ten years.
  • Credit History: A foreclosure will stay on your credit history ten years and remains permanent in public record information of your county.
  • Current Employment: Your company has the right, and most instances will regularly check your credit history if you’re employed in a sensitive position.  Sometimes a property foreclosure can be justification for instant re-assignment or even termination.
  • Future employment: Employers check most job seekers credit report.  A property foreclosure is one of the most damaging items you could have and may impact potential employment.
  • Ability to obtain Loans in the future: On the government required standard loan application form 1003, you will be required to answer ‘YES’ on the question ‘Have you had property foreclosed upon or given title or deed in lieu thereof in the past 7 years?’ Responding ‘yes’ almost always insures a higher interest amount.
  • Ability to obtain a Fannie May Loan:  After a foreclosure you will be ineligible for a Fannie Mae backed loan (Primary Residence) for a minimum of 5 years.

 

 California Foreclosure HelpThe Good News
You are not powerless.

 

Can you avoid foreclosure?
Absolutely.

 

Foreclosure Prevention Strategies.


Refinance

Find a lender willing to refinance the house under more favorable terms.

Loan Modification

You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Government Programs

HUD, HUFA, FHA (Partial Claim), HARP, and HAMP are all government mandated programs to help distressed homeowners.

Short Sale

You get the lenders approval to sell the house for the current market value which is less than you owe.

Deed-in-lieu of foreclosure

You “give back” your property to the lender.

 

 You have options…  We’re here to help.