From 2000-2014, I worked in the capacity of being a real estate agent and broker in Sacramento, California. I have sold professionallu hundreds of Foreclosures and shortsales during this time.
Few things are more devastating to families than the prospect of foreclosure. You own your home and you love it — it serves you well. Yet, due to unfortunate circumstances, foreclosure may seem imminent.
For local CA families facing foreclosure, the stress can be almost unbearable. Worse yet, the foreclosure process can take months or even years, stretching out the pain for longer than anyone wants.
Fortunately, you have options available to you here in CA — perhaps more options than you realize. There are many strategies that help for foreclosure in Sacramento; these are legal foreclosure avoidance strategies you can implement to help you resolve your foreclosure issue so you can get on with your life.
In this blog post, you’ll read about 3 ways that you can avoid foreclosure (there are other ways to avoid foreclosure as well). The goal of these strategies is to help you legally and ethically avoid foreclosure and reducing the pain and frustration that you’re facing, while minimizing any long-term financial commitment or burden to you. Not all of these strategies will apply in every situation but you’ll probably be able to find at least one of the three ways that will work for you.
Strategy #1: Work out a deal with your lender
The first strategy is called a “foreclosure workout”. In a foreclosure workout, you’ll sit down with your lender and tell them that you don’t think you can pay your current mortgage obligation but you’d like to figure something out so you can stay in your house and continue to pay your mortgage.
Contrary to popular belief, lenders don’t want to foreclose! They want happy customers who pay their mortgages, so lenders are often willing to work with homeowners to figure out a deal. This might include a temporary reprieve on your mortgage payments, or it might include a catch-up strategy where your outstanding mortgage payments are spread out so you can catch-up and pay them off, or it might include a restructuring of the outstanding amounts that you owe. This is AKA, the loan modification. It’s where you make interest only payments for a specified term, usually 3-5 years. after the term, the mortgage payments goes back to where they were and sometimes even HIGHER! Make sure you read over the agreement
Strategy #2. Bankruptcy
Filing for bankruptcy may seem like an extreme measure but it is one of the “tools” in your foreclosure avoidance toolbelt. When you file for bankruptcy, you indicate to all of your creditors that you are no longer able to pay your bills. Filing for bankruptcy will put a stop to the foreclosure process because all creditors must stop the collection process.
Filing for bankruptcy, though, is a little extreme: it may require you to sell off some of your assets in order to pay off your creditors. And, a bankruptcy will remain on your credit score for many years, which could impact everything from getting a loan to getting a car… even getting a job. So this shouldn’t be your first line of defense! Matter of fact, this is a delay of the inevitable. This will not in most cases prevent the bank from coming after you. They will eventually, foreclose. In my opinion, unless you received really good legal advice, you just waste money on this
Strategy #3. Short sale help for a foreclosure in Sacramento
A short sale is the third strategy — this is where you sell your home and put the proceeds of the sale toward the amount owing on your mortgage loan. A short sale is a preferred method for people facing foreclosure because it is proactive, fast, and very effective.
- It is not automatic. You have to apply and the lender has to approve. You will need documents such as recent paystubs and taxes to prove you have a legitimate hardship
- It’s proactive, which means that you take matters into your own hands (that’s a major stress eliminator because so much of the stress of foreclosure comes from the process being completely out of your control).
- It’s NOT fast — in most cases, you can sell your home in 6-9 months! You can get help for foreclosure in Sacramento since organizations like Darren Buys Houses Cash help people going through short sales.
- It’s very effective because a short sale can completely wipe out (or almost wipe out) the amount owing on your mortgage. If there is any amount left over that is not covered by the sale of the property, you’ll be responsible for it (although you can sometimes work out a deal with your lender).
With a short sale, you still end up with the reality of having to leave your home but there is a bright side: The impact to your credit is much less (compared to a bankruptcy or a foreclosure) so this is a smart long-term play to give yourself some options. https://www.darrenbuyshomescash.com/help-for-foreclosure-in-sacramento-ca/
Foreclosure Timelines In California
- The foreclosure process begins when a homeowner misses mortgage payments.
- Lenders are required to contact homeowners at least 30 days before initiating foreclosure to discuss financial situations and explore alternatives.
2. Notice of Default (NOD) (Day 30-180):
-
Recording the NOD:The lender records a Notice of Default (NOD) with the county recorder’s office after the homeowner fails to make loan payments.
-
Mailing the NOD:Within 10 business days of recording, the trustee mails a copy of the NOD to the borrower and anyone requesting such notice.
-
Reinstatement Period:The borrower has 90 days from the date the NOD is recorded to “cure” the default by paying what is owed, plus any costs incurred by the lender.
The Emotional Process of Dealing with the LOSS Of Your Home.
If you can understand the realities of what is taking place between your heart and your mind, you can make better choices. This loss is simialar to a loss of an individule or love one. The faster you can get to ACCEPTANCE, the faster you will recover. You can and will recover, in most cases as long as your not in your senior years, like late 60’s and you can still work. Below is the Process:
Here’s a more detailed explanation of each stage:
- Shock and Denial:This initial stage involves disbelief and a sense of numbness or detachment from the reality of the loss. If you get stuck here, most likely you will end up in Foreclosure!
- Pain and Guilt:As the reality of the loss sinks in, individuals may experience intense sadness, longing, and feelings of guilt or regret.
- Anger and Bargaining:Anger can arise from the unfairness of the loss, and individuals may try to find ways to undo it or negotiate with fate. (AKA LOAN MOD)
- Depression:This stage is marked by feelings of deep sadness, hopelessness, and a sense of emptiness as the reality of the loss settles in.
- The Upward Turn:As the initial intensity of grief subsides, individuals may begin to experience a sense of hope and a gradual improvement in their emotional state. (THE SHORT SALE)
- Reconstruction:This stage involves adapting to life without the deceased and finding new ways to cope with the loss.
- Acceptance and Hope:This final stage involves coming to terms with the loss and finding a sense of peace and hope for the future, although the pain of the loss may still be felt.
