Foreclosure Process in California Step By Step
Searching for foreclosure process in California step by step details? This article will guide you about the process.
Foreclosure Process in California Step by Step
California has a high ratio of foreclosure cases as one in every 1800 homes is foreclosed in Bay area.
This number does not include the missing listings that were not published online. After the 2008 recession, Bay area market has improved significantly. However, the foreclosure process remains unclear.
This situation creates problems for homeowners who have received the default notice. This article is written to educate consumers about the step by step foreclosure process in California.
Foreclosure Process in California Step By Step
Missing Your First Payment
Life can be tough. Maybe you just lost your job or went through a big life change and couldn’t pay the loan installment. That is okay. However, it is time to catch up with your late payment even if it requires hefty interest rates and penalties. Delaying the payment will create major problems. Confront the problem and pay for your home. Overall, in the US, foreclosure process starts once you have missed two loan installments. However, in California, the official process begins after 90 days of missing the first payment.
Getting the Default Notice
The bank will send you a default notice if you are 90 days late with your payment. At this point, you will receive a call and the official notice explaining the consequences of foreclosure. It is best to pay pending installments even if it requires selling one of your minor assets. It is important to know whether you want to keep the home or not. If you want the house, then you only have ten days to respond to the default notice. You must come up with a way to pay your loan and if required, apply for loan modification.
Notice of the Trustee Sale
After the default notice, you will get 90 days to make payments to the bank. The total balance includes property taxes and insurance amount. Failing to comply with the instructions will result in the notice of the trustee sale. This usually happens after six months of missing the first payment. You will get 20 days to respond to this notice. During this time, the bank will decide a date for the foreclosure auction. You have the right to keep your home even if you choose to pay for the loan a day before the auction.
After 200 Days—-
Will the bank sell your home after 200 days?
Well, the answer depends on the situation. The outline presented in this article is just a minimum time limit. Most foreclosure proceedings take months and sometimes years.
The bank will delay the foreclosure process if you have a pending loan modification request. According to laws, lenders cannot foreclose the home unless the loan modification application is rejected. Filing for bankruptcy also stops the foreclosure. In some cases, people live in their homes for 1-3 years before they have to move out.
The end result also depends on the “judicial/non-judicial” foreclosure setup. Judicial foreclosures have a certain setup, they take much longer to finish and are expensive for the homeowner.
Non-judicial foreclosures do not have a certain start or end. The process depends on the lenders, and you will not be able to purchase your home after the foreclosure is over. In the judicial proceedings, you can re-purchase your home after 3-12 months of the foreclosure auction.
About the Company:
JJW Homes LLC is a residential redevelopment firm in Bay area. We help people avoid foreclosure by helping them with loan modification and reinstatement. Each client requires an individual solution, so, our team will study your case to come up with a unique solution.
We can negotiate a loan modification or a short sale on your behalf. Moreover, if as the last option, you want to sell the home, we can purchase it for you. Doing so will save your home from going into the foreclosure auction. You will get your money without seeing a negative drop in your credit score.
Contact us now if you need help with a foreclosure property in Bay area.
JJW Homes is connected to the national group of investors. We can guide you even if you are not located in San Francisco. Our team will connect you with someone who can put you on the right track.
Foreclosure Process In California Step by Step
[Image Credits: Brads651 & Mike Licht]