Many homeowners are faced with unforeseen circumstances, which can cause them to be unable to pay their mortgage payments. Once a homeowner gets several payments behind, the mortgage holder may initiate foreclosure proceedings. In foreclosure, the homeowner’s property is seized as payment of the debt, and the homeowner loses their rights to ownership. There are two types of foreclosure, non-judicial and judicial foreclosure.
The non-judicial process of foreclosure is the primary method. This process does not involve any court action. Non-judicial foreclosure is used when a “power of sale” clause exists in the deed of trust. Once the mortgage lender has filed a Notice of Default (NOD) with the County Recorder’s Office and posted it on the property’s door, the borrower has 35 days to pay the amount due or will lose their home. If the homeowner requests a loan modification, the lender is not allowed to continue the foreclosure.
If the borrower fails to pay the amount due in NOD, the lender may move forward with foreclosure. If it is non-judicial foreclosure, then the borrower will not have the right to stop the foreclosure proceedings.
The foreclosure process is conducted through the court system to obtain a court order to place your home in foreclosure. This order is used when the power of sale is already in the mortgage or deed of trust. When the court declares a foreclosure, the property will be sold to the highest bidder at auction. The borrower will have one year after the foreclosure sale to redeem the property if a judicial foreclosure process is utilized.
If you receive a Notice of Default on your primary residence, you have 30 days to opt to participate in the Foreclosure Mediation Program. If you decide to participate in the Foreclosure Mediation Program, your foreclosure will be put on hold until after the mediation. You can retain a law firm to assist you in filling out your paperwork and to attend the mediation on your behalf.
There are several ways to stop foreclosure. You can file for bankruptcy, a loan modification or mediation, short sale and deed-in-lieu of foreclosure. Are you expecting a foreclosure? You need an experienced debt and foreclosure attorney to advise you and act in your best interests. Contact Debt Rescue Law for a FREE consultation at (833) 707-1234.