How to Stop Foreclosure
Ranked #152,334 in Business & Work, #1,187,827 overall
How to Stop Foreclosure
If you have a specific question don't hesitate to leave it in the comments section. We want to help you gain as much information as possible so you can make an educated decision about how to proceed with your situation.
I'm not an attorney nor a CPA so you should always verify the information contained in this lens.
What is a short sale, pre-foreclosure, and foreclosure?
1. Pre-Foreclosure: This is the process during the foreclosure stage where the home has not yet gone to sale or auction. After receiving the Notice of Default (NOD) the homeowner will have approximately 90 days before receiving the Notice of Sale (NTS) which will state the date, time, and location of the auction.
2. Foreclosure: This is the process in which the home becomes the property of the bank. If the home does not sell to the highest bidder during the auction it will be taken back by the foreclosing bank.
3. Short Sale: A short sale is when the bank takes less than what is owed to them. For example, if you owe $350,000 to the bank but the home is only worth $300,000 the bank will need to take a $50,000 loss by allowing your short sale to go through. Thus, not all sellers or homes qualify for a short sale. If the banks see that they will mitigate more loss by going through the foreclosure process they will not approve the short sale.
Notice of Default (NOD): Given to the homeowner after they've been more than 60 days late on their mortgage.
Notice of Sale (NTS): Given to homeowner 90 days after the NOD announcing the sale date, time, and location.
If you have any questions please ask me in the comments section.
CA Foreclosure Process Timeline
60 days Late on Mortgage
Bank records Notice of Default at County Recorders.
90 Days After NOD has been filed
Notice of Sale is issued to determine auction date, time, and location.
5 days before the sale date
Borrower's right to reinstate the loan will expire.
Sale Date
Property is sold to highest bidder at auction.
If property is not sold at auction
Home becomes an REO (Real Estate Owned)
** As you can see, you have up until 5 days before the sale date to reinstate the loan. If you are trying to do a short sale AFTER this 5 day period, it is very unlikely that the banks will allow it. We've done it before, but it's tough. Time is of the essence. If you'd like to get some help you can visit Hope For Seller.
If your looking for more information I suggest visiting HUD's website on how to avoid foreclosure in CA.
Best Option for Homeowners Facing Foreclosure
Short Sales Can Make Homeowners Happy
It goes without saying that hoemowners facing foreclosure are in a delicate situation. If your goal is to move on with your life, be able to build your credit again in 2 years so you can purchase another home, and stop receiving letters and calls from lenders regarding your defaulted loan, your best option would obviously be to sell your home. There are 2 ways to do this so let's explore both:1. Sell Through Realtor: Realtors always have plenty of buyers they work with so they may give you a good chance of getting your home sold. The only word of caution I give for using a Realtor is to choose one who has experience negotiating with the lenders and someone who knows how to handle the BPO (Broker Price Opinion. This is banks appraisal on the property). If they do not know how to handle the BPO process and the BPO comes in too high it WILL kill your deal. The banks will approve a purchase price based on that BPO and if it's too high there will be no buyers willing to pay the price. I've seen numerous homes head to foreclosure because of this single mis-hap.
2. Sell Your Home Directly to an Investor: This is the single best option in selling your home, ONLY if the investor knows what they are doing. There's no room for them to take advantage of your equity since there is none, they will probably know how to negotiate with the banks, they will understand the BPO process, and they will know how to handle all the necessary paperwork for you. If you sell directly to a knowledgeable investor you can skip the whole "hire-a-realtor" process and get moving with the purchase itself.
If you have specific questions about this topic you may do so in the comments section.
Short Sale Buyers in CA
... Helping homeowners move on with their life
If you have no equity it's hard to sell your home through conventional real estate. With Creative Acquisitions you can skip the realtor and sell directly to us. We are experienced in negotiating with the banks, handling the banks BPO process, and knowledgeable with the CA real estate process.
Since we are also licensed, active realtors in CA we have a responsibility to the homeowners that we do business with, even if we aren't representing homeowners as the client. .
You can visit us at www.HopeForSeller.com or call us at 888-988-3844. We're not just here to buy your home, we're also here to answer all of your questions and to help you move towards the future.
Options for Upside Down Homes
There are few options for homeowners who want to avoid foreclosure. You can choose from any of these options.
1. Don't do anything: I understand that being upside down can seem overwhelming and all you want to do is turn the other way and forget about your situation. This might seem easier but can hurt you in the long run. I want you to understand that the banks will evict you from the property, board it up, and stick notices on your home not to trespass. However, until the bank actually takes the property over you'll still be responsible for everything that happens on the premises. If someone gets hurt while entering your property you'll be liable.
2. Deed In Lieu of Foreclosure: This is a better option than walking away from your home and ignoring the situation. With this option you are giving the deed back to the bank instead of going into foreclosure. However, this does not stop the bank from foreclosing on your home, giving you a deficiency judgement, sending you a 1099, or having a negative mark on your credit. If this is the option you choose make sure to get in writing from the banks that they will not pursue a deficiency judegement or 1099, not to place a foreclosure on your credit, and to use "paid in full" or "satisfied" on your credit report
3. Forbearance: In order to qualify for a forbearance agreement you must be delinquent on your mortgage. With this option the bank allows you to keep your home by working out a repayment plan. The bank will add the delinquent amount to your current mortgage allowing you to pay off the delinquency over time. This doesn't help homeowners in distress who are already struggling to make their current mortgage since after the restructuring of the loan the monthly mortgage will increase.
Helpful Resources for Foreclosure on Amazon
by susanpark909
Hi everyone! My name is Susan and I'm a Realtor/Owner of Exit Real Estate Group located in Los Angeles and also a real estate investor. I'm involved w... more »
- 0 featured lenses
- Winner of 2 trophies!
- Top lens »
Explore related pages
- Bird Dog Profits - Real Estate Bird Dogs and Property Locators Bird Dog Profits - Real Estate Bird Dogs and Property Locators
- Short Sale Calculator to improve your approval rate Short Sale Calculator to improve your approval rate
- Central IL Distressed Property Central IL Distressed Property
- Know Your Foreclosure Allies | Home Foreclosure Information Know Your Foreclosure Allies | Home Foreclosure Information
- Find Foreclosures | A Closer Look At The Home Foreclosure Process Find Foreclosures | A Closer Look At The Home Foreclosure Process
- Should I Short Sale My House - Confused About Doing A Short Sale vs Foreclosure ! Should I Short Sale My House - Confused About Doing A Short Sale vs Foreclosure !
