so what recommendations do you give to clients who are in danger of foreclosure?

Great Information and something that most agents don't have a very good handle on. The liability with Notice of Defaults in California is for good reason. Seems that the least qualified always seem to want to seek new markets with learning first.

Good article and good timing with all the forclosures happening in California now.

Good article and good timing with all the forclosures happening in California now.

Kate - each case and client are unique, I guess it depends on many things.  What stage of the process are they currently in?  Have they negotiated with the Lender, Loss Mitigation etc.?  Can they do a short sale?  Is filing bancruptcy going to help? It will slow down the process, but that's not my advice, I just see it happen alot!  Not really sure what advice or recommendations to give without all the details, but one great recommendation I can give you, is to contact any of the attorneys here on the rain.

Let's not forget they are here, they are members, we all are here to network, so I'd check them out.
I"ll save you the time doing a search, you can access them, and any other industry professionals right here in this comment!  This is also right on the front page of Active Rain for future use! Just trying to be a resource to you and to them, and to the public since they'll be reading this. :-)

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William - thanks for your comment.  I know that a property in default, when listed in California, posses a problem for the buyers agent if their client is an investor.  You can't do it unless the investor is purchasing as an "owner-occupied" residence.  I am surprised how many agents, brokers and lenders don't know this. 
That's what this post is all about. Sharing, and helping all parties involved to be educated, and make good sound decisions.

Thanks Todd.  It's not by choice, believe me, I hate to see people losing their homes and going through some of the stuff they are in this market! If this post helps just one little shred someone's circumstance, then I'll feel like I have done a good deed, and served my community and company well!  Appreciate the comment!  :-)

What if any is the redemption period. In Tennessee it is zero days after the sale but in Wisconsin it is 6 months. And that is on a foreclosure not a tax sale. A lot of people even here in Tennessee think they have 90 days after the sale to re-work their loan and buy back there house. 

I would add the redemption period info on the page for CA residents so they can see what they can and can not do

Mott - thanks!  If they are not familiar with this process, seems it would be hard to help out a client who is learning about it first hand.  The idea is to be pro-active.  To be able to Offer helpful services and have knowledge of what the market is doing, then show how you can help clients and others get through these times. Appreciate your comment, thanks!

Paul, I believe it is 2 years, not sure on the Non-Judicial, but I'll look into that and find out.  Great idea, thanks for the comment.  When I find and confirm the facts for the California "redemption period", I'll come back and post it either here in the public comments, or in the post itself.  I appreciate your comment and suggestion, they're always welcomed!!  :-)

Cheryl - thank you for the compliment, I wish it were not a post that is much needed right now.  Yes, this is a common occurrence across the US.  Many of your clients will hopefully benefit from having this knowledge and information. My goal here is preventing foreclosures when and where we can.  Please feel free to share this with others, email it to your friends or family, and give to your clients who might benefit from this information.  Thank you Cheryl.  Have a great day!!

 Great Information Brad! We must be on the same page today!

Well if you're reading this post, we are...literally on the same page!!  LOL!   Thanks Joan :-)

I hope this helps anyone who reads it, I hate to see anyone have to go through a foreclosure. It's like a cancer that you have to fight, and you can lose, but it's a battle one must fight, win or lose just the same!

Paul -

You asked me earlier in this post about the redemption period. "What if any is the redemption period?"  After talking with my underwriting department today, I have confirmed that there is NO redemption period on this type of foreclosure. 

Once the trustees deed records, it is clear title to that property.  The only thing that might be questionable, is if the courts had stopped the sale due to a bancruptcy.  This would have had to have happened prior to the recordation of the trustees deed. There is no way to come back for your property after a Non-Judicial foreclosure.

California is very experienced in foreclosures and protecting consumers... 21% of all foreclosures in the Nation were in California for March of 2007. (There were 149,000 nationally to date)

Having said that, I don't see the need to add this to the post above.  Thanks for your suggestion. I Love the feedback!!  Sorry for the delay in this response back to you.

Brad - Excellent post.  Thanks so much for sharing this in a very usuable format.  Love your glitzy title from glittermaker.com too!

Thanks Marlene, gotta add some kind of glitter to such a serious natured post!  Appreciate the comment! This was actually my first attempt at doing a post in total HTML.  They should get even better now... I hope!

Comment / Letter to Active Rain Staff:

I just saw that this post is featured on Localism.com, thank you moderators at Active Rain for helping to get this out to the one's who may need it most, the consumers in our communities.  I am very thankful that you have helped support these efforts in so many ways! Thank you for helping me to "Pay It Forward" to viewers and readers everywhere. You guys and gals are the BEST!!

Brad,

I went to bookmark and the bookmark icon is not there.  Did I miss something?

Fran

Try and refresh your screen, and then bookmark again.  I do see it above, sometimes AR has little hick-ups that way.  Sometimes the graphics bar above your comments disappears too. Let me know if that works.

Rate this post:

1   2   3   4   5

Maybe if you click on it here, it will add to your bookmarks, never tried it this way before!!

After a conversation with my buddy John Occhi in Hemet, I have modified this post to see what and how google responds.  I am testing the theory of updating posts to see what really happens.  Currently this post shows up on a google.com search as #7 on the 2nd page, out of 2,750,000 pages.  John was kind enough to send me an email letting me know this.  Now I want to see what happens when you add your own comment, modify the post, add a couple new links, and change a couple words.  I'll check back in a week or 2 and see what's happened!  Thanks for your comments and support!

                                                                                             ATTENTION!!!!!!!!!!!!!!  

If you are reading this post, and you've gotten to this comment, I hope you have found this in time to make a difference.  If you are facing a short sale, foreclosure or real estate loss, I have many resources in the business and on Activerain that may be able to assist you.  These are not "Foreclosure Chasers", they are professional Real Estate individuals and companies that are out there to help YOU!  Yes YOU!!  Having difficulty and financial challenges in Real Estate today, is nothing to be ashamed of, or embarrased about.  It's when you don't find the right people to help you, now that's something to be ashamed of.  If this is YOU, please call or contact me, I'd be happy to refer you to the proper professionals that can help you out.

DON'T BE ANOTHER VICTIM AND STATISTIC OF FORECLOSED REAL ESTATE!  THIS IS YOUR AMERICAN DREAM!

Brad,

Thank You for posting the timetable.  Our offices in Long Beach and in Anaheim Hills specializes in working with borrowers who are facing foreclosure.  One of the biggest problems we have faced is that the sellers are not familiar with the timetable and are misinformed about the whole foreclosure process. They do not realize that the agents and brokers representing them are dealing with this timetable as well as the timetable of the market.  In order to sell the property quickly, the sellers  need to sell the property below market price. Some sellers feel that they are being shortchanged by their realtors so they cancel their listings.  In some cases, they cancel the listing even if they already have several offers on their property.  They relist the property with another agent who has to start the short sale process all over again.  Not enough time and too high of a market price - they loose the property, destroy their credit totally, and could possibly owe the lender and the IRS after the sale.  I have heard some sellers say that  they " would prefer to lose the property to foreclosure than sell it below market". I have found that a seller will say this because some other realtor had given this seller the assurance that he could sell the property at market price (in some cases, above market price) and close that transaction before the trustee sale.  I'm sorry but in my book, any realtor who tells a seller that he can find a buyer before the trustee sale at market price so he can get the listing is not only lying through his teeth but doing a great disservice to the seller and to the community!

Marie - that is a great point and I thank you so much for sharing that.  I hope readers take the time to read your comment, as much as I hope they find this post in time.  You have brought this into a different light now, hjopefully it will help to shed more wisdom and education to consumers, viewers and other Active Rain members. Thank you so much for taking the time to help educate and provide valuable info to those who may really need it.  Your words are so much more than just another comment!!  :-)

Brad Andersohn - This post is in responce to my post What Does Google and Your Associates Page have in Common? .  when I look at the Search engine you are currently ranked in the #19 slot.  I too will come back and monitor and let you know how additional comments change your position from where I sit.

Now have a Blessed Day,

John Occhi, Hemet CA REALTOR
Mission Grove Realty

Thanks John, I did add that code we discussed on the phone the other day.  I hope this post helps people who need it, and I hope that code helps people like me who need it!!  Thanks for your comments, your post, your blog and all the time you've invested in this topic.  I hope all the best for you and your succe$$!

I'll check this one out in a couple weeks and see how we're doing.

For those tracking this with us in google and watching the results and impact of a modified post, one important note:  I changed the title from "The Foreclosure Process and Timeline - California" to "The California Foreclosure Process and Timeline". 

Two reasons here, number one, I wanted to see if having the 2 words "California Foreclosure" together (just as the tag words are used when searching google), would make a difference in ranking, and number two, I could then track if and when google makes any modifications or changes to the ranking of this post. 

The current position (#19) still has the old title. That will let us know when the next "robots" come by, and what they do when they catch the change in the title, the post, and these comments.  BTW - I tried adding google analytics to this post and could not, the html code kept showing up on the post.

Now to get this post back on it's intended track, if you or someone you know needs this information, please forward them this timeline and process.  I care more about the affects of this helping people, than I do the search engines placement with it.

Brad,

I found your post through a link on John Occhi's blog.  Your article is well written and clearly describes the process - even a REALTOR from North Carolina can understand it! :)

Regarding the Google reference, it's 4:00pm EDT and when I clicked here from the Google results of a search for CA Foreclosures this article is currently in the last spot on the 2nd page.

Good luck with your experiment.

Kelsie

Kelsie - thanks for the accolades regarding this post, you're too kind!  You folks from N. Carolina are pretty sharp!!  Regarding SEO and google, these things take time, my focus is to get this information in front of those that don't have or are running out of time.  This blog could be on page 10,000 of google and I'd be OK, but if it helps just one client, consumer, friend, or family member, that is all I really care about.  I know many have read this and I am honored, but it's the few that need it, that counts the most to me. Thanks for your comment, your research, and your wit all the way from NC.   :-))

Thanks for all your help! I have found this site extremely informative! : )  

And now for a simple ? if I may ask?
 
I am in California and am in severe financial trouble (i.e., credit cards etc). + we are upside down on our house mortgage. The house appraissed for 250k while our loan (1st and 2nd total 305k).
I have been told that if our mortgage company forecloses on us (and being that it is our only residence i.e., primary residence) that we would be "exempt from OWING them the deficiency?? (i.e., the loan amount minus the sale price + late fees...etc)
If the mortgage company would sell our house today there would be a negative of way over 50k!
We are worried that we would be sued for the $ but have been told that since it's out primary residence that we would be exempt from owing anything and
that we would walk away from the foreclosure UNSCATHED.
Any help would be HIGHLY appreciated!
 
Thanks, Reid 

Forgot to add to the above. Our loan was a cash out RE-FINANCE to pay credit cards off. 

I have been also told that since it is a "Re-Fi" rather than a purchase loan that cash out re-fi's are NOT protected against a deficiency judgement in the state of California??

Also have been told that if the lender of our re-fi chooses the "non-judicial" route of foreclosure that we will not be liable for any deficiency??? Is this true? Or would we be liable? This is our main residence (and only home).

Now I am very confused....

Any help will be appreciated : )

reid  

Reid - I am going to bring in the specialist on this one. let me make contact and I'll be right back....

Help is on it's way....

Any help will be much appreciated! : )

*Called several bankruptcy attorneys today and got different answers.

Some said that in a forclosure in California there is really no need to worry about the deficiency...they said it would be too

much trouble for them to do (the old timer bankruptcy lawyers said this) The old timers said "Foreclose, walk away and dont worry about it"

And some said that they WILL infact go after us for the remaining money.... (the newer (younger)  lawyers said this)

Reid 

It sounds like you're getting some good opinions and advice.  Run a search for John Occhi.  He's a pro at this stuff too! Let me know if you still need any assistance!

I think I have figured it out Brad!!!!

check this link: http://www.castlelaw.com/antideficiency.htm

and this: http://www.dre.ca.gov/trust.htm 

(This below is an excerpt from the site above)

One of the major differences between the two foreclosure methods is your right to obtain a deficiency judgment, which is available when the loan is a "non-purchase money" mortgage or deed of trust. If the Property is other than one to four residential units, or if it is one to four residential units and the borrower did not intend to occupy, your loan (as distinct from a seller "carry-back") would be "non-purchase money." When your loan is used to finance or refinance the equity of the Property (no sale transaction is involved), the loan is also "non-purchase money."

If your loan is "non-purchase money" and you determine the protective equity is insufficient to repay the entire amount owed by the borrower, including all of the fees, costs, and expenses of the foreclosure, you may want to consider a judicial foreclosure. Deficiency judgments are not available when the non-judicial foreclosure method is utilized. However, collateral actions (a separate judicial action) for fraud, waste, or malicious destruction of the Property may still be possible.

**I seems as if CA has strict anti-defiecency laws in place that came from the great depression where owners had to foreclose and then were further burdened by the lender suing for the deficency! Which in turn made borrowers even "broker" after losing their home. 

what do you think brad? Does this make sense?

thanks, reid

Reid - this is great info to have here on this post.  I think your research will be very beneficial to other readers and members on AR.  Thanks for doing this, and for adding great value to this blog. If you find any other information that you feel may be helpful to others, please feel free to come back and post here anytime. Thanks Reid!  B-)

Brad - Thanks for the info and contact! I have emailed John and I hope he chimes in here.

Thanks, Reid  

Brad and Reid,

I'm not trying to diverty your traffic, but my answer was so lng that I just created my own blog article on the topic and you can find it here:

California Foreclosures and Deficiencies Balances

Thaks for the kind words Brad and maybe we can help Reid understand his situation and offer our assistance to get him out of his jam - the best way we can.

John Occhi, Hemet CA REALTOR

Brad,

Back to the earlier information about this post and Google - I just checked it - Sat evening  at 9:30 (I have no life) and found it still to be in the #19 slot.  With all of this key word rich content be added in the last few days, it will be interesting to see if you climb at all.

John

Reid - I see John has piped in here, and has provided a link to assist. Let us know if this is a site that will help.  If there is anything else we can do, just let us know.

John thanks for the information, the website, and your assistance.  I hope others will also find this useful. Just FYI, google had moved me down on the list and now I am back up.  I think there is so much new info posted each day regarding foreclosure, this might not be a good sample to use for ratings. Just a thought.

B-)

Brad,

Thanks for the referral - I acknowledged you on the page I put up.

I just Google California Foreclosure and yo have dropped to #23 as of this morning.

Let's keep an eye on it and maybe add a new comment every couple of days to keep the content fresh, talking of course about California Foreclosures

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR 
Mission Grove Realty

Thanks John for the update, the mention, and you're welcome for the referral.  The best thanks is always a referral back, but you know that already...Have a great night!!

Great Post!!  I am getting Experienced Realtors local to me approved to sell our REOs.  Also assisting in streamlining the short-sale process.  Hopefully solutions will work out prior to either a short-sale or foreclosure, but once it does happen it helps the seller (client or CHL) to make it as simple as possible.

Andrew - thank you for stopping by to post your comment.  I know Countrywide has been in the media a lot lately and I think you guys are doing some great things in the industry right now. If you need agents in the Contra Costa and Solano areas to assist Countrywide with some REO's or short sales, feel free to contact me as a resource anytime.  I would be happy to help.  Just email me or give a call anytime. Thanks again for your comment! B-)

Hi, I was wondering, we have a investment ( rental ) property, it used to be our primary residence, We are having a hard time with renters and the difference in the mortgage. We are getting ready to let it foreclose.  We haven't been late or behind ever on any payments.  But, we want to know what will happen after it forecloses.  We have another rental prop. and our new primary residence, will this affect them, can we be sued.  We desperatly need answers and I can't seen to find anything on the web. We live in CA

Resident of CA

I understand your question and can also relate to your delicate situation.  This is your investment property and personal information regarding your mortgage.  Feel free to contact me outside of this blog regarding more information, I respect your privacy and confidentiality.  I will certainly do my best to direct you to the right resources. Thanks! 707 888-6299 or bandersohn@firstam.com anytime.

Fantastic summary and thank you for it. A lot of folks in my region are chomping at the bit waiting to take advantage of the foreclosure market and sales on the old courthouse steps.  I've copied the summary and forwarded it to a couple friends.

Keith - glad you found this to be useful.  Hopefully this will help your friends understand the timeline and foreclosure process.  Thanks for commenting, best of luck to you.  :-)

The house I am renting is now 2 days away from being 90 days in default. I am supposed to pay rent on the first of December but don't think I should with the house getting foreclosed. Do you think I should pay it and take the hit of the house getting foreclosed and losing Decembers rent money and losing my security deposit? From my understanding he can walk away with my security deposit as well... If you have any information for me and what i should be concerned about that would be wonderful! Thanks!!

The house I am renting is now 2 days away from being 90 days in default. I am supposed to pay rent on the first of December but don't think I should with the house getting foreclosed. Do you think I should pay it and take the hit of the house getting foreclosed and losing Decembers rent money and losing my security deposit? From my understanding he can walk away with my security deposit as well... If you have any information for me and what i should be concerned about that would be wonderful! Thanks!!

Oh Brad, Once againI love your post.  Everything you do is helpful.  I am taking a course on Short sales.  I have not had one yet but just in case.  There aren't too many foreclosures in this neck of the woods.  Have your best day ever! (night now)

Rob - if you owe rent, pay the rent!  If you need to move, then move!  Don't add insult to injury of your landlord losing their home in foreclosure.  My advice is to always "DO THE RIGHT THING", one way or another, all that goes around. comes around.  I guess the real question here becomes more of a moral and ethical one? 

How would you feel if this was "your" home, and your renter decided not to pay rent. Especially during a time you were possibly losing the home, and Christmas time to boot!  What if your paying the rent made the difference of foreclosure or not for the owner?  My advice again,  ALWAYS do the right thing, and make the right choices in life!  I am confident that you will, someone upstairs is always watching and taking note of your decisions and actions  :-)

Pat - I am happy to hear you don't have many foreclosures in your area.  It's a sad thing when this happens to someone who worked so hard to become a homeowner and provide for their family.  I am here to help all I can and try to make a difference, even if it is just a small one.  Make it a great day Pat, and enjoy all that you've been blessed with, that including things and people!  :-)

Wow!  This is exactly what I was looking for!  Thanks so much for the great article. 

Kimberlee - I'm glad this helps, I'm sad if it's applicable to you or anyone you know.  Thank you for commenting on it. :-)

Hi Brad, thankfully it is not me ...however a few friends have recently lost their homes and I was at a loss on information to give them.  Will keep this page so i can refer to it in the future  :)   Have a good one!

Kimberlee - I am so sorry to hear that about your friends.  I too have witnessed friends and neighbors going through this most unfortunate circumstance.  I always feel helpless and wish there were more I could do to help.  This post just seemed to be contributing in some small way to getting information out that may help someone, somewhere, somehow.  Glad to hear that you are not the one experiencing this epidemic right now!  :-)