What is Foreclosure?
Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or Lis Pendens. The foreclosure process can end one of four ways:
The borrower/owner reinstates the loan by paying off the default amount during a grace period determined by state law. This grace period is also known as pre-foreclosure.
- The borrower/owner sells the property to a third party during the pre-foreclosure period. The sale allows the borrower/owner to pay off the loan and avoid having a foreclosure on his or her credit history.
- A third party buys the property at a public auction at the end of the pre-foreclosure period.
- The lender takes ownership of the property, usually with the intent to re-sell it on the open market. The lender can take ownership either through an agreement with the borrower/owner during pre-foreclosure or by buying back the property at the public auction. These properties are also known as bank-owned or REO properties (Real Estate Owned by the lender).
Are you in default?
If you have received a default notice from your mortgage lender and you are not in a position to make payments, don't wait! You need to take action now to avoid serious problems. The State of California allows non-Judicial Foreclosure, which means that a lender can foreclose on your home without getting a court order. You could lose your home and your credit. If you sell your property for more than what you owe your lender, the lender can also come after you for the deficit.
Here is what we can do for you:
1. Negotiate better terms with your lender for you
2. Arrange for a short sale. We work with your lender to sell your home and ask the lender to accept a reduced payoff to help you save money
3. Show you other options available to get out of the mess
Contact us now for a FREE professional evaluation of your situation.