How to Stop Foreclosure in California
One of the most heartbreaking things one can go through is losing a house due to foreclosure. The complete feeling of hopelessness that takes over as one believes that there is nothing to be done, once a notice of foreclosure has been received. The homeowner can learn how to stop foreclosure in California easily. There are many ways to stop foreclosures and just because a home becomes foreclosed, does not mean that the homeowner will lose it. The biggest myth is that once a foreclosure notice has been delivered, it is the end of the road for the homeowner.
In California, the law states that the property title will remain in trust until the loan has been repaid in full. This is known as a “title theory” or a “deed of trust.” After a borrower, otherwise known as the homeowner, has defaulted on their payments for six months, the loan company will hand the homeowner over. They commonly call this the redemption period. Another point to keep in mind is that the homeowner must receive at least twenty days notice before the sale of the property. After twenty days, the home will then be sold through an auction during office hours. The original homeowner will also have the opportunity to bid on the house. In California the primary method used for foreclosure is non-judicial. This means that once the home is bought after auction, there is no way for the homeowner to buy back the property. Therefore if the borrower would like to pay back the property, it can only be bought back through the foreclosure auction.
The homeowner could also use foreclosure mediation to try and stop foreclosure. This is best done with the help of someone who is well-versed in the whole process. The outcome would involve the homeowner and lender working out a new deal, in which the repayment plan has been reworked, or the homeowner will pay the complete outstanding amount. A good outcome would include the following: a good understanding of the point of view of all the parties involved and a good understanding of any options involved. There would also be a realistic assessment of the affordability of the home in question and of the homeowner’s finances. There are many repayment options that the homeowner will be able to choose from. These include a complete rework of the repayment plans, or to pay the full outstanding amount.
If the homeowner is not able to come to a good arrangement with the lender, the only option might be to sell the home. Even though the house is lost, the homeowner may be able to pay the full outstanding amount and will avoid having a foreclosure notice against the homeowner’s name. The homeowner may be able to do this in either a short sale, otherwise known as a pre-closure sale. Or the homeowner may hand over the deed to the lender. This is known as a deed in lieu of foreclosure.
Stopping foreclosure in California is easy to do. The homeowner must just keep calm and go to a professional to start foreclosure mediation
Find more California Foreclosures
