What are the ramifications of foreclosure on a property in California? What other options are available?

Answer 1

California is a trust deed state. That means that the traditional foreclosure process there has the trustee selling the home without a court order. There is a standard process followed. The borrower would have agreed to this when they signed the loan document. The benefit to the borrower is the lender can only take the house. If the property ends up selling for less than the lender was owed the lender can take no further action.

If the lender uses a judicial process the foreclosure process takes a lot longer. Using a judicial process keeps the door open to the lender to sue for any shortfall when they finally sell off the house. The judicial process is a lot more work for the lender so CA lenders will rarely go that route.

As was noted by someone else you should clearly focus on getting the place solid prior or finding a way to make and keep the payments current.

A short sale is where you agree a sale with a buyer and the lender agrees to take less than they are owned. The lender will consider this option when they are looking at a loss if there is a full foreclosure.

You can sell on terms or other creative structure if the buyer really can perform. Most of the time this means the loan is caught up and then 1-2 years later the buyer finds a way to sell on the property (paying off the loan) or refinances. Not the best idea in some cases. It clearly is an option in other situations.

Note that having a foreclosure on your record means that you are going to face problems when trying to buy a home or even obtain credit for other purposes. A foreclosure will leave a bit hole in the credit file and will drag down your score for some time to come.

As dire as it might seem really do your homework so you check all the options. Try not to make a bad situation worse and do plan for the future.

Answer 2

You lose your home, pretty simple!

Other options include selling the home before the foreclosure goes through.

If you can't sell it for enough to pay off the mortgage, talk to your lender about setting up a "short sale" where the lender agrees to accept less than the full amount of the loan balance as payment in full. Most lenders are willing to do this as it helps to minimize their losses and they don't have to go through the expense of the foreclosure and the hassles of re-selling it after the foreclosure.

Answer 3

Is the guy already in default? ( ignored funds?) the first component to do is for the owner to call the lender, and also positioned it in writing, and verify out to barter words. each and every from time to time, if only a value or 2 became ignored, the lender will execute archives to positioned the ignored funds on the lower back end. even if that is with the aid of a non everlasting concern, which consists of a wellbeing concern, the lender would artwork with you. Your relative ought to work out a criminal specialist if he/she enable many months bypass through without funds and hasn't talked to the lender. Now, with the sub-precise debacle, many people are turning out to be in way over there heads even as the loan fee resets. some creditors will do a artwork-out quite than grow to be the owner of the authentic resources. Your relative desires to confront this head-on, as painful because it is, and spot if she or he will negotiate his way out. If his or her credit isn't yet impaired, perchance refinancing will artwork, yet many times, through the time someone asks for help, it is previous due interior the game!

Answer 4

It's called...your screwed! Good luck