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What Foreclosure Means To You ?

Till now we have been speaking about loan modification and foreclosure. What is the meaning of foreclosure to the owners? Many people believe that once foreclosure begins, all hope of retaining your home is gone. Nothing could be further from the truth. On the following page, you will find a chart which lays out the typical time-frame for the foreclosure process. IT IS STILL POSSIBLE TO SAVE YOUR HOME AT ANY POINT THROUGHOUT THE FORECLOSURE PROCEEDINGS.

Please don’t panic just because you have received a Notice of Default – plenty of options remain. The critical factor in determining whether or not you will be able to save your home is to act quickly – before it really is too late to do anything.

Foreclosure Time Frame in California*

The timeline displayed here is typical in a California non-judicial foreclosure. The foreclosure timeline does not begin until the lender feels they have exhausted all avenues for curing the payment delinquency. Normally, this happens after the borrower has missed three monthly mortgage payments. The borrower has probably been contacted by the lender several times prior to beginning the foreclosure process. The official foreclosure process then begins when the lender contacts a Trustee and instructs them to file a Notice of Default.

Calendar Description with civil code reference
Start (day 1) Notice Of Default recorded with county recorder-2924
Within 10 business days Trustee mails Notice Of Default to borrower(s) with recording the date 2924(bx1) and 2924(e)
Within 1 month Mail Notice Of Default as per TSC instructions -2924b(cx1x2) and 2924b(e)
Within 3 months Set sales date, time and location unless bankruptcy has been filed, or other event occurs that holds the time line-2924 and 2924f(b)
25 days prior to sales date Send Notice Of Sale to IRS ( if applicable) IRS regulations
20 days prior to sales date Public Notice Of Trustee Sales-2924f(b) Post Notice Of Trustee Sales-2924(b) Mail Notice Of Trustee Sale-2924b(cx3) Begin publishing  notice of sale in an adjudicated newspaper( must run 3 consecutive weeks) 2924b (e) - INCLUDES any taxing agency.
Within 10 days from first publication of Notice Of Sale Send beneficiary request for directions to the property –(2924(b)
14 days prior to sale date Record the Notice Of Sale with the recorders office -2924(b)
7 days prior to sale date Trustee cannot sell for 7 days after the expiration of the court order (2924c(e)
5 business days   prior to sales date The borrowers right to reinstate expires-2924c(e)
Sale date The lender property is sold to the highest bidder or reverts back to lender.

*Other states foreclosure time frames may vary

What types of hardship lenders use for Loan Modification?

With the growing number of loan modification files received everyday, lenders need to prioritize these loans for review along with the borrower’s hardship letter and financial statements. These are the types of hardship they are considering:
  • Adjustable Rate Mortgage Reset – Payment Shock Illness
  • Loss of Job
  • Reduced Income
  • Failed Business
  • Job Relocation
  • Death of family
  • Incarceration
  • Divorce
  • Marital Separation
  • Military Duty
  • Medical Bills
  • Damage to property (Natural Disaster or Unnatural)
Let us work together and make a difference. Do not shell out more of your already overflowing budget and finally accept the fate of a shattered dream!