Foreclosure is a legal process in which a mortgage holder or a lender (a creditor) can get property repossessed or sold for the purpose of paying off the debt that has been incurred on the property. After the borrower starts missing payments on the mortgage, a CA foreclosure process usually begins after 3 consecutive missed payments. At this point, the lender will file a Notice of Default (NOD).
In accordance with the California foreclosure laws, an official NTS notice (Notice of Trustee Sale) that signifies that the home will be sold at auction will be served which is a final step in the foreclosure process. At this point, legal advice is absolutely needed.
Can you stop foreclosure if a Notice of Trustee Sale has been served? Yes, you can. You can enter into a short sale as a way of stopping foreclosure process. With a good legal advice is all that could make a difference. The borrower may even benefit from a bankruptcy, which can eliminate credit card debt and store the foreclosure sale. At Consumer Action Law Group, once you have received a foreclosure notice, you will be presented with options that will help you scale through. Some of them are:
♦ Mortgage Modification:
This option helps to refinance the debt accrued by helping to extend the term of the mortgage loan by reducing the monthly payments to a level that is more affordable. If the borrower has recovered from a financial problem before with a lesser net income, there are tendencies that he may qualify.
♦ Short sale:
You may qualify for a short sale if you can no longer afford your home because you are facing foreclosure. When you sell your home lesser than the cost of your remaining mortgage balance then you have effected a pre-foreclosure sale (short sale). If you choose short sale as an option and sell your home, all or a portion of your mortgage balance will be paid off with the proceeds.
♦ Deeds in lieu:
The deeds in lieu are usually observed as last resort in which you may be able to willingly return your property to the lender, although this cannot save the house, but your chances of obtaining another mortgage loan in the future are guaranteed. You can qualify if:
– You were unsuccessful with your previous attempts of selling the house
– There are no other FHA mortgage in your possession
– You do not qualify for any other options while you are in default.
Our foreclosure bankruptcy attorneys are well-equipped to represent you in bankruptcy court. Through bankruptcy, foreclosure can be stopped dead in its tracks. All continuing collection activities are instantly stopped once a bankruptcy petition is filed because all debt collectors are prohibited by the federal law including your mortgage lender.
Before filing for bankruptcy, it is important that you consult with our foreclosure bankruptcy attorney as regarding this matter to determine whether the strategy is good for you or not.