Buying a short sale
West Petaluma Foreclosures, REO’s and Short Sales
East Petaluma Foreclosures, REO’s and Short Sales
Penngrove Foreclosures, REO’s and Short Sales
Cotati Foreclosures, REO’s and Short Sales
Rohnhert Park Foreclosures, REO’s and Short Sales
Northeast Santa Rosa Foreclosures, REO’s and Short Sales

Foreclosure Questions:

How quickly can my lender foreclose on me?

The entire process of foreclosure starts at the time the first mortgage payment is missed.  Form that date through the end of the process, it will be at least five months and 20 days before the property title can be reassigned.  During that time, the borrower maintains the right to make current and reinstate the loan up until five days before the Trustee's sale.  This leaves more than five months' time for negotiation and resolution with the help of a professional representative such as a short sale real estate broker.

How do I stop the foreclosure?

The best way to stop foreclosure is to bring your loan current.  Many borrowers not able to do this are forced to look at other alternatives to avoid foreclosure.  Other options include:

  • Selling the home at fair market value;
  • Arranging a short sale; selling your home is still an option if you owe more than your home is now worth (a growing problem as home prices fall).  In this case you would negotiate a short sale with your lender with the help of a professional short-sale agent.  A short sale won’t itself stop the foreclosure; most lenders will work with real estate brokers who present a legitimate short sale proposal.
  • Refinance the property; refinance for better, more manageable and more affordable loan terms and payments, or to access cash equity to help meet your financial obligations.
  • Negotiate a mortgage forbearance or modification; you may be able to negotiate with your lender to change the terms and payments to resolve delinquencies and/or net more affordable home mortgage terms.

If my lender forecloses can they come after me for the loss?

In order for your lender to recover losses incurred on your mortgage as a result of foreclosure, the lender would need to do a judicial foreclosure which is expensive and time-consuming.  In California this almost never happened although that is slowly changing especially with private money lenders.  This is another reason to consider a short sale where full settlement language will almost always be negotiated.

What should you never do?

Deed Your Property To Someone Else

A common sham is to get the homeowner to deed his to her property to the third party before having confirmation that the loan has been paid off.  Once Deed is transferred, the Deed holder then gains full control of the property.  But in many cases, he or she will not pay on the mortgage.  However you, as loan holder, are still responsible for that loan, and default on the loan could be disastrous to you.  Never hand over control of your property without first confirming that the loan is satisfied, or at the very least without gaining the advice of a lawyer (your lawyer, not the potential Deed recipient's!). 

Authorize Buyer Contact with Your Lender 

Buyers request authorization to negotiate with lenders for one reason—to secure the best, lowest price for your home for them.  The process can be long and involved, and in the end if the buyer pulls out you could be left with no time and no options.  Let your representative oversee the negotiations of your sale so that you can sell your property rather than endure the repercussions of foreclosure. 

Sell Your Home at an Extreme Discount

You may encounter parties who try to convince you to sell at a huge discount in order to tap any equity that might be left in your home.  If your foreclosure sale is still 45 days or more away, talk to a professional real estate broker specializing in short sales and foreclosure avoidance to see what they can do for you! 

Take No Action at All 

Many homeowners mistakenly assume that there is no hope of keeping their home when they have fallen behind—or when they are on the verge of falling behind—on their home mortgage.  The truth is that your mortgage lender does not want your home, or the financial loss that they will incur as a result of foreclosure.  Lenders are more willing to work with you than you think. LENDERS DO NOT WANT TO FORECLOSE ON HOMES!  They would much rather resolve the situation in a way that is not a burden and a loss to them.  Your lender will consider a number of possibilities with you.  Work with a professional and find out what your options are, and how [together] you should approach your lender. 

What is a Notice of Default?

If you have received a Notice of Default it means that your lender has started the formal foreclosure process.  In California, a borrower must be two months delinquent before a lender can record a Notice of Default.  A borrower has over 90 days from the recording of the Notice of Default to work something out with their lender to avoid foreclosure. 

I’m in foreclosure - can I still sell my property?

Absolutely, In fact, your lender would rather you sell the property than have to foreclose on you.  Even if you have no equity in the property, the lender wants to find a solution.  Lenders will agree to a short sale and will accept a discounted payoff to fully satisfy the loan.  In a short sale, the lender almost always pays all closing costs – including title fees, escrow fees and the real estate commission.