What Is A Non Judicial Foreclosure| Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. Most Foreclosures in California are Non-Judicial foreclosures.
In a Non-Judicial Foreclosure there must be a power of sale clause in the mortgage/loan document or deed of trust. This is a clause saying that the home owner agrees to allow the lender to sell the home in the event the buyer defaults on the loan. Of course there are a number of steps involved that allow the home owner to “make good” on the loan by catching up payments and even renegotiate the loan so they can stay in their home.
If that’s just not an option the homeowner can exercise, eventually the Lender will publish a Notice of Default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder's office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recording of the deed.
If the home owner as not already moved, they will be evicted If it can’t be sold at auction the lender takes back the property through the "Foreclosure" procedure and will eventually sell it on the MLS to recover their losses.
Today, one of the most common alternatives with less of an impact on your credit is for the troubled home owner to “Short Sale” the property.
Here are some other Foreclosure Alternatives:
- Refinance | If your are current with your mortgage payments then this is a pretty good option. But typically speaking, distressed homeowner don’t have any equity in their home and their credit is shot so this not going to be an option for many.
- Do nothing or walk away | The Implication is clear hear and the lenders only option will be to foreclose on your property.
- Lender Workout | Your lender may be willing to:
- Add the missed payments to the existing loan balance.
- Change the interest rate, including making an adjustable rate into a fixed rate.
- Extend the number of years you have to repay.
- Sell And Bring Cash to Closing
- Deed in lieu of foreclosure
If you think or believe you qualify for a short sale and are ready to take the next step please contact us immediately. There is no fee for a consultation.
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