California’s foreclosure rate is at an all time high. One in every 248 homes or 54,088 homes in California are currently under foreclosure. Currently, California is number three in the highest foreclosure rates in the U.S. behind Nevada and Arizona. In Santa Clarita this month, 121 homes are in foreclosure.
The word foreclosure is tossed around a lot but not too many people know what it means.
Foreclosure is the process by which a lender, typically a financial institution but other times a private party, obtains title to property because a homeowner failed to make the mortgage payments or there has been a consistent failure by the homeowner to perform other contractual obligations. The foreclosure process is an extremely technical area of the law.
There are two different types of foreclosure, judicial and non-judicial foreclosure. Non-judicial foreclosure is when at the time of purchase, the buyer gives the lender the “power of sale,” which gives the bank the power to sell the property if the buyer defaults. It begins with a Notice of Default and usually takes approximately 120 days from the date a Homeowner receives the Notice of Default until the foreclosure, known as the trustee’s sale. Judicial foreclosure is when the buyer defaults and the lender files a lawsuit. There is either a trial and a judgment is entered or a settlement is reached between the two parties.
If you are in a foreclosure situation, there are certain ways to avoid it and to stop it. The best way is to pay the amount needed to keep your home. Another option may be by declaring bankruptcy. Additionally, if the foreclosure notices were not sent out, or they failed to meet the time requirements, you can use that in court as a loophole. If you gave the lender a “power of sale” agreement, there is no way to contest the foreclosure because you signed off on it when you purchased the property.
Hopefully, with these tips you can protect yourself from foreclosure and know what to do when a foreclosure situation arises.
This brief overview is exactly that: an overview. If you have specific questions or wish to receive a detailed explanation please contact the Hacker Law Group @ 661-259-6800.