Options to Avoid Foreclosure - Foreclosure Timeline in California

If you are a California home owner facing foreclosure, it is important to understand the foreclosure timeline and options to avoid foreclosure. A good understanding of the time it takes to foreclose on your home and your options to avoid foreclosure is essential. In California, the minimum time that it takes to complete a trustee’s sale foreclosure or a nonjudicial foreclosure is 110 days after the Notice of Default (NOD) is recorded for most loans. An additional 30 days is added for loans made between January 1, 2003 and December 31, 2007 on owner-occupied residential one-to-four unit properties. As you consider your options to avoid foreclosure please understand that time is of the essence regardless of which option below is best for you.

Foreclosure Solutions - Options to Avoid Foreclosure:

• Reinstatement
  A simple reinstatement is the most straightforward option to avoid foreclosure. The homeowner has to pay all missed payments, late fees and legal fees that are accrued up to the date of reinstatement.

• Forbearance or Repayment Plan
  This option enables homeowners to “reinstate” their mortgage by repaying missed payments over an agreed period of time or the missed payments may be added to the end of the scheduled mortgage maturity date.

• Mortgage Modification
  Loan modifications can result in the reduction of one of the following: the interest rate of the loan, the principal balance of the loan, the term of the loan. The goal is to attain a lower monthly payment and more affordable mortgage.

• Rent the Property
  If the market rent covers the monthly mortgage obligation, the property can be rented with the rental income paying the mortgage and related expenses.

• Deed in Lieu of Foreclosure
  Deed in lieu enables the homeowner to return the property to the lender rather than go through the entire foreclosure process. Lender approval is required and the homeowner needs to vacate the home.

• Bankruptcy
  Possible solution if a homeowner has non-mortgage debts which can be eliminated by personal bankruptcy. This option often only delays a foreclosure.

• Refinance
  Possible solution if a homeowner has positive equity in the home and they have maintained their credit. 

• Servicemembers Civil Relief Act
  Members of the military service who are experiencing financial hardship as a result of deployment may qualify for relief under the Servicemembers Civil Relief Act (SCRA).

• Sell the Property
  Homeowners with equity in their home can sell it and use the proceeds from the sale to cure the foreclosure.

• Short Sale
  When a homeowner owes more on their property than it is currently worth, they can hire a qualified real estate agent to sell their property as a short sale. Eligible homeowners must have an acceptable hardship to qualify. Acceptable hardships may include: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, business failure, severe illness, property damage, and more.

A successful short sale allows homeowners to avoid foreclosure, salvage their credit, and avoid having a deficiency judgement on their record.  Borrowers may qualify for another mortgage in as little as 18-24 months vs. five years or more with a foreclosure.

If you are a homeowner facing foreclosure in Southern California, please call me today for a free confidential consultation regarding your individual situation, and potential options available to you to avoid foreclosure. I am a Certified Distressed Property Expert (CDPE) and short sale specialist with experience in closing short sales with many lenders including Bank Of America Short Sales, Chase Short Sales, and Wells Fargo Short Sales. My short sale services are always to no cost to home owners. I can be reached at 949-500-0484 or via email at dave@ventanacoastalproperties.com.