Although foreclosure rates has drop in California cities like Sacramento, Roseville, Rocklin, Stockton, Modesto, Tracy, Vacaville, Vallejo, Woodland, and Fairfield, it is still a real threat for many homeowners throughout Northern and Central California. There are many routes that you can take to resolve your foreclosure problem. However, you must act quickly because some of these actions must be taken early in the foreclosure process. As more time pass, you are left with fewer options. Once the foreclosure sale date has passed, you cannot get your home back. Here are some of your options out of a foreclosure:
1. Pay the delinquent amount plus late fees, interests and costs associated with foreclosure up to 5 business days prior to the date of the first scheduled foreclosure sale (aka Trustee Sale). You should contact the Trustee who is handling the sale for the full amount necessary to cure the default as well the manner and time of payment.
2. Negotiate some type of repayment plan with your lender. Sometime the lender will work you by dividing the delinquent payments equally to be paid back in a few months or put them towards the back of the loan. You might be able to work out a loan modification with you lender.
3. Sell your home and close escrow before the date of the foreclosure. If you have equity in your home, you might be able to sell it for a profit. Keep in mind there are broker fees, escrow fees, and taxes you would have to pay from the sale proceed if there is equity in the home. If there is no equity in the home and the balance of the mortgage is more than the value of your home, you might want to consider a short sale. In a short sale, the lenders agree to accept the sale proceeds that is less than what you owe because of the cost and time of a foreclosure as well as the time it takes to sell your house after a foreclosure. You need a real estate agent who is experienced in short sales if you want to go that route. I can recommend you one or two real estate agent if this is what you decide to do.
4. File for Chapter 13 Bankruptcy to stop the foreclosure and repay the delinquent mortgage payments over 3 to 5 years. Of course the regular monthly mortgage payment will also be paid along with the delinquent payments but it allows you to spread out the delinquent payments to smaller amounts over time. Chapter 13 Bankruptcy forces your lender to accept this repayment plan and let you stay in your home. If you have the financial ability and all negotiation efforts with your lender failed, this is a perfect way to keep your home.
5. File for Chapter 7 Bankruptcy is NOT a means to save your home from foreclosure. It can only delay the foreclosure process. If you do not want to save your house from foreclosure but you have a lot of liability you need to eliminate, you may file for Chapter 7 Bankruptcy if you qualify.
6. Lastly, you can just let you house go to foreclosure. You can live in your home free of charge up to the date of the foreclosure sale. However, after the foreclosure sale, you can face eviction proceeding and be charged a reasonable rate of rent during the time of your stay. This is called the "Holdover" charge. You should vacate your home by the date of the foreclosure sale.
The above are just a few options when you are facing a foreclosure. If you want to explore your Bankruptcy options to save your house from foreclosure, call for a Free Consultation with Muoi Chea Bankruptcy Attorney with Offices in Sacramento, Stockton, and Fairfield California.