This takes place if you have fallen behind three or four months on your mortgage payments. Sometimes a homeowner may have unbearable expenses one month but see that they will recover in the coming month. Other times a devastating financial blow means extended inability to make loan payments on your home. In most cases, lenders will wait at least a few months before threatening to begin the foreclosure process.
Seeing what you can do now to stop a foreclosure on your California home is better than waiting to see if your financial situation improves. If you cannot recover from your monetary hardships and your home is foreclosed, you must vacate the premises once the house has been either sold at auction or repossessed by the lender, according to the California foreclosure laws.
This can be a devastating situation for anyone, but is made even worse for families still suffering from a hardship. However, California also has some of the most Progressive laws in the country regarding mortgage help and how the process is followed. As a homeowner facing possible foreclosure in California, there is important information you need to know about concerning the new laws in the state.
Fortunately, if you are facing the possibility of foreclosure, this new law may actually assist you in preventing foreclosure on your home. In June 2009, Ellen Corbett, a Democratic senator from San Leandro, rewrote the code regarding California foreclosure law, mandating that lenders in the state must give notice to their borrowers a minimum of 30 days prior to the start of the whole process.
Also, if the lender has done nothing to work with the borrower in making affordable changes in agreement terms before sending the notification, a 90-day cessation on payments must occur during the foreclosure process. However, it is important to be aware of the fact that lenders often put forth the least possible effort to help clients, so homeowners should still actively work on negotiations with the bank.
The latter portion of this new law has some people arguing that it is not constructive to allow non-mortgage payers to remain in their homes for 3 months without making a payment. Others say it is a perfect addendum to the initial portion of the law, giving homeowners some time to work out a plan to survive the enforced sale. The only thing that we can bet on, though, is that the cost of obtaining a mortgage in California will go up as a result of this new risk the banks will be taking on.
As always, homeowners should take advantage of every opportunity to save their homes or avoiding eviction, including making other living arrangements or working with a reputable lawyer to file bankruptcy or negotiate a loan modification. No matter what people are saying about the new California foreclosure law, it is a reality and one you should inform yourself about if you are a resident of the state.