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These steps keeps you from having to hire a real estate attorney to see if you have any basis for challenging the foreclosure. Some lenders make mistakes in the foreclosure process, and those mistakes can invalidate the foreclosure and buy you some time if the lender has to start over. These procedures are complicated legal issues that only an attorney should consider.
A lawsuit must be filed with the Superior Court in the county where your property is located alleging the basis for stopping the foreclosure for example, violations of foreclosure or lending laws. Your lawsuit must also request that the court issue temporary restraining orders and a preliminary injunction stopping foreclosure process while your lawsuit is pending.
Mortgage foreclosure doesn't have to be the most feared nightmare of homeowners in California. The foreclosure sale date is a looming deadline that will come sooner than you think. However, if you are proactive in stopping foreclosure, you can avoid California foreclosure sale. The key is to actively negotiate with your current lender or a new lender to try to stop foreclosure sales date so you can keep your home or property.
SPS will help borrowers file consumer complaints through the Consumer Financial Protection Bureau when a lender is guilty of discriminatory lending practices based on factors such as race, gender, age or veteran status of the borrower. In other cases you have other options like contacting your lender and request a current mortgage payoff statement. This will tell you how much you are behind, and how much money you need to pay off the full balance. California foreclosure statutory law requires the lender to provide you with an accurate payoff statement within a reasonable time after you make the request. You can also contact the foreclosing lender and ask for a forbearance. If you explain your financial situation and present a reasonable hardship you might be able to pay your mortgage in the near future, the lender might agree to a forbearance instead of going through the expense of foreclosure. However this may in clude a larger balloon payment in the end, not making it the best option.But as long as the lender has not held the foreclosure sale, you have the right to redeem the mortgage stopping foreclosure and have the mortgage reinstated by paying the principal, interest, late fees and costs that you currently owe. Under the California Foreclosure Prevention Act of 2009, a borrower can generally request an extra 90 days before the foreclosure sale date to provide time to negotiate a loan modification. Take advantage of this time by working a modification agreement out with your lender.
This is a cost-effective solution that may work on its own or as a first line of attack, pre-litigation.
In many cases, a loan modification enables homeowners to reduce their monthly payments and avoid default on an otherwise unmanageable loan, such as an adjustable rate mortgage with an increasing interest rate. If you're struggling to make your monthly mortgage payment, Fannie Mae and Freddie Mac have a loan modification program so your home stays out of foreclosure — and you stay put in your home. The program called Flex Modification, went into effect Oct. 1, 2017 and is still in effect today. You can apply for the modification stopping foreclosure sale in just a few steps.
The California foreclosure process can last up to 200 days or longer. Day 1 is when a payment is missed; your loan is officially in default around day 90. After 180 days, you'll receive a notice of trustee sale. About 20 days later, your bank can then set the auction. But that's not the end of it.
Foreclosure and bad credit can be avoided with a sale or short sale of the property before a mortgage goes into default or even after the bank begins the foreclosure process also stopping foreclosure. In extreme cases you may also consider offering your property for short sale. A short sale is when you sell your home for less than the amount you owe on your mortgage, but your lender agrees to the reduced amount as payment in full. While a short sale will hurt your credit, it could save you from foreclosure, which is even harder on your credit score.