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STOP FORECLOSURE NOW! YOU CAN END THE NIGHTMARE AND SAVE YOUR CREDIT AND/OR HOUSE!   WHAT IS FORECLOSURE? At one time you signed a stack of documents for a loan on your house as a promise to pay monthly payments, usually for about 360 months. The house is collateral for the loan. If you don't pay the lender, the insurance, the taxes, or even the home owners association, the lender has the right to take the house back in exchange for the loan. There are all sorts of rules that govern what happens and the timing of everything. Any mortgage can file a foreclosure and sometimes one lender will pay the other lender or even the taxes in order to protect their investment. The bottom line is that the loan you took out is now due and if you don't do something fast, they will sell your house to pay it off for you. Obvously, the bank doesn't really want to do this. They would rather have their money. They aren't in business to take peoples' houses. They are in the business of lending money. The reason that they can give you such a good loan, is that they have the right to take the house if you don't pay. HOW LONG UNTIL I LOSE MY HOUSE IF I DO NOTHING? Step 1: A Notice of Default (NOD) is filed. If you have already received a Notice of Default, the clock is already ticking. You now have 3 months to do something before a Notice of Sale is filed. Step 2: Notice of Sale is filed 21 days prior to the trustee sale. The trustee is basically the bank's representative. Step 3: You have 5 days before the sale in order to make up the missed payments, late fees and penalties. After that time, the lender is under no obligation to take any money from you. You can avoid foreclosure after that time by paying off your whole loan in full. Step 4: Trustee sale. The house is sold at the auction and the lenders are paid off in order of thier interest in the property. First morgage is paid off first. If there is money left, it goes to the second mortgage and so on. Sometimes if there is a lot of equity in the house, it is possibe that the home owner would get some money, but this is not usually the case. Often the lenders don't even get all their money back. If no one buys the house at the sale, the bank now owns it. They can now sell it for what ever money they can get for it. The law in California states that after the sale, you as the original owner have no rights to get the property back and must move out. If you don't move out, you will likely get evicted. The law also makes it diffucult to rent the property back from who ever now owns it. IS IT ALREADY TOO LATE? Find where you are in the above time schedule. If you are in the last 5 days before the sale, you have a lot fewer options. The earlier you are in the process, the better for you because you have more options. It will also be less stressful. You probably haven't been through a foreclosure before, but the bank has. They won't stop until you act. Here are some of your options: Option 1: Negotiate with the lender: Forbearance: The lender agrees to put off the foreclosure in exchange for smaller payments for a specified time. You must eventually make up the difference. At that point, you can go back to regualar payments. Refinance: Get a new loan all together. Missed payments can be rolled into the loan. You must be able to qualify for a new loan which may be difficult because of late payments on your loan and the foreclosure fileing. Negotiating with the lender works best if there is a good reason for missing payments, like getting laid off, divorce, death or illness including large medical bills. Generally, the lender wants to see that there is an end to the problem. If you had a history of making payments regularly and agree to go to credit counseling. Option 2: Earn more money and spend less. This may sound like common sense and it is. Sell your car, bring your own lunch and do without. Maybe another family member can take a part time job. You can also ask for money from friends and family member if you can develop a method of payment to return their money. Option 3: Challenge the paper work. If the lender accepts payment after the foreclosure had been filed, then they may have to start the whole process all over again. Be prepared to prove acceptance of payment(s). These first three options are likely the only way you will be able to keep your house. Perhaps you need to look at your finances again and buy a home you can better afford or move to another area entirely. Maybe renting for a while would make more sense at this time. If you act responsible in foreclosure now, you are setting yourself up for home ownership in the future. Option 4: Declare Bankruptcy. This stops foreclosure immediately. Collectors stop contacting you. The court comes up with a payment plan for all your creditors. Once it is confirmed, you must make all of your payments. If you don't, then the foreclosure picks up where you left it. Many times it is a matter of time before the foreclosure goes through. Bankruptcy is a delay of the inevitable. Option 5: Let the bank take your house. This is always an option and one that takes no planning or action on your part. Because the bank is the one lending the money, they can make most of the rules. That means that if you don't repay loans as promised, they will be less likely to do it in the future. They share your credit history with each other, so a foreclosure is shared with all lenders who ask for it and it is not in your best interest. Many banks and some investors can help you with your options. Option 6: Sell your house. This may seem like the most obvious. This way you can stop the foreclosure and keep your credit report cleaner. foreclosure can stay on your record for up to 10 years and makes it more expensive to borrow money in the future. This often means that it is difficult to buy a home in the future and hard to even rent. If you have time and equity, you can list it with a realtor or sell it yourself. If you need to move quickly or just want to get rid of the headache, you can contact us to discuss further options. Once we know your situation, we will be happy to come up with the best solution for you. Many times we can end the headaches and if you want to sell, quite possibly put money in your pocket. Feel free to contact us via our online form or by phone at: 1.949.945.7128

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