A notice of default foreclosure in California can be an unpleasant surprise. Once you know what is happening, however, it gives you the ability to take control of your life and get back to your home. This guide discusses what a notice of default foreclosure is, actions you can take to stop the foreclosure process, and practical remedies to secure your home and your future.
What Is a Notice of Default Foreclosure?
If the bank is making notice to you, it means a notice of default foreclosure; that is, your mortgage is delinquent in making payment, and you are now in default. In California, this is the first step of foreclosure. Usually filed upon the mortgage having been over 90 days delinquent, it serves notice upon you that you are likely to lose your property.
This notice is not only a warning but also starts the foreclosure process if you don’t fix the missed payments. Many owners feel the pressure of such notice but never understand what action to take to stop it. Fortunately, there are some options that could help you keep living in your house and stay out of further complications in court.
What to Do If You Receive a Mortgage Foreclosure Letter?
Panic or despair may be a common response to a mortgage foreclosure letter. The best response is to actively prepare and plan. Here are the key steps:
Read the Notice Carefully
Understand the notice details: What does the notice mean by the amount of fees and deadlines so you can work on a plan?
Contact Your Lender Right Away
Reaching out to a lender before a deadline can really be the starting point for negotiations. In general, lenders have an interest in working things out with the homeowners rather than going through foreclosure. You may qualify for a temporary forbearance or loan modification based on your case.
Loan Modification Options
In a loan modification, the terms of your borrowing can be changed, for instance, to an extended term or a reduced interest rate, so that payments are easier to make. Most lenders will permit that if it makes it easier for you to keep making payments.
Be on the Lookout for Forbearance if You Need It
Forbearance is temporary because it postpones or partially forgives payments. You can get some additional time to recover, especially if your financial hardship is short-term.
Form a Repayment Plan
Some lenders may form a repayment plan that will allow you to repay the payment missed on a regular monthly basis. This can prevent the case from getting any worse to foreclosure.
California Foreclosure Laws: What You Need to Know
California is under non-judicial foreclosure laws. This basically means that in most cases, foreclosure does not need court proceedings.
Pre-Foreclosure Period: A period of 90 days from the time your notice of default has been filed to the time before the foreclosure process can proceed.
Notice of Trustee’s Sale: When the default remains unsolved, a notice of trustee’s sale is posted announcing a date of sale. This normally provides another 21 days to help you react again before the foreclosure sale.
Redemption Period: California does not have a redemption period following a foreclosure sale. This means you are acting very close to the deadline for keeping your home when you act during the notice period.
Knowing these timeframes can keep you from losing your home. However, if you have already received a foreclosure letter, this is what you must do.
I Got a Foreclosure Letter—Now What?
If you find yourself sitting there, thinking, “I got a foreclosure letter; now what?” do not worry. You are not alone. Carefully evaluate your financial situation to see if any options exist to avoid foreclosure. Here are a few additional things to consider:
Consult a Professional Advisor
Consult an attorney who has experience with foreclosures to determine your rights in foreclosure and other legal defenses that may apply in your case. Attorneys sometimes uncover mistakes the lender made or an alternative, such as a bankruptcy filing, to temporarily stall the foreclosure.
Contact a Foreclosure Specialist
Foreclosure specialists are those professionals who, like foreclosure advisors or financial planners, help people avoid foreclosure. They can assist you in formulating a plan to stabilize your finances.
Sell Your House
Sometimes, selling your house can come out as the best alternative whenever you are not in a position to make further payments. It will be sold prior to the mooted foreclosure sale, and your foreclosure turns out to be a personal decision rather than a traumatic one, which will lead to a loss of credit and financial future.
How ABL Houses Can Save Your Home
If you have a foreclosure notice, you are also among the many homeowners that ABL Houses focuses on to provide customized solutions. They help customers resolve the problem of foreclosure with empathy in the heart that will either allow them to retain their home or help them find a way through without much financial loss. With over two decades of real estate and foreclosure prevention experience in California, they provide strategic support and respond quickly to ensure that you get the very best advice and that your unique needs are covered.
Contact ABL Houses today to find out about all the options available to you. A short consultation may be the answer to your relief and strategy for a new beginning.
Final Words
Stop California Foreclosure in Its Tracks with Knowledge: It’s never easy to stop foreclosure, but knowing what you have to do can make a lot of difference. You can stop a foreclosure event by doing loan modifications and considering the possible sale of the house. However, remember that the earlier you act, the more options you will have.
