Foreclosure: Information and Important Deadlines for California Residents

Foreclosure. It’s a very weighted word. It brings feelings of fear and insecurity, and most of us have worried about this at some point in our lives. So many of us fall victim to financial hardships, and foreclosure is something much more common than one may think. If you are facing foreclosure or know someone who is, you are not alone. That being said, there is a couple of things worth knowing about the process.

When someone falls behind on the mortgage, the bank will contact the homeowner to find out more about his or her situation. This first contact is to determine if the financial situation is reparable or not. For example, if the homeowner missed a couple weeks of work due to surgery and therefore could not pay the mortgage, this is a situation that will resolve itself once the homeowner recovers and is able to return to work. However if the homeowner is fired from a job, this may indicate inability to make payments now and in the foreseeable future, and the situation may be assessed to be irreparable and the home will officially be in jeopardy. The homeowner can request more time after this first contact to make a financial plan to avoid foreclosure, but this will only buy the homeowner 14 days to come up with a plausible execution plan. After the assessment has been made by the lender (usually the bank) that they will foreclose, the lender cannot begin the foreclosure process for 30 days and at the end of this period the lender will file a Notice of Default which the homeowner will receive a copy of by mail. Once the Notice of Default is filed, the homeowner has 90 days to resolve the debt with the lender. After 90 days if the lender does not recover the debt owed by the homeowner then the lender will then opt to sell the home in an auction and a Notice of Sale is recorded. From this date, the auction will be set for no sooner than 21 days and sold to the highest bidder. The homeowner has until 5 days before the house is to be sold at public auction to stop the foreclosure process and pay the lender.

Once the home has been sold, the new owner cannot just change the locks and push out the homeowner if they are still occupying the property. The new owner must serve them a notice in which they have 3 days to voluntarily leave, if they do not move out in that time period, a formal eviction process will begin which generally takes weeks.

This is a very long and traumatic process for those who have to endure it. There are many things that can be done to stop the process and many ways we can help. If you or someone you know has found yourself in this situation, call us today to find out how we can help. We will work together to make sure the bank doesn’t take your home!