If you are currently experiencing a San Diego foreclosure, or if you feel that foreclosure may be looming in closely on you, then it’s time you considered taking some action!
Foreclosure occurs when a homeowner fails to fulfill the terms of their repayment plan on the property, and the lender decides to take possession of the home. The lender usually resells the home in an attempt to recover the original mortgage on the property.
The process of foreclosure can be complicated, depending on the circumstances of your case. A foreclosure case takes approximately four months out of court, and as soon as the foreclosure process is complete, the lender is legally able to put the house up for sale on the market.
The first step in the process involves the lender sending a notice to the homeowner stating that they are behind on payments. This notice is usually very detailed and includes the outstanding balance up to date, as well as the number of payments that the homeowner is behind on. The notice should also include a date by which the balance must be paid by. This notice is sent by the county recorder to whoever is listed on the mortgage.
In California, the lender must give the homeowner a period of ninety days to make up the difference on the balance. If the homeowner is unable to get up to date on their payments, the home will be foreclosed. However, if the homeowner does repay the negative balance, the home must be released. In the event that the homeowner cannot repay the balance and the lender repossesses the home, the lender must give the homeowner advanced notice before selling the property, as well as post a sign on the property itself stating that it is for sale.
Don’t feel resigned to losing your home yet; there are circumstances that could allow you to keep your home. Take a look at our section of tips on how to avoid foreclosure.
