Foreclosure in California can be tricky to navigate, especially if this is your first time dealing with it. If you received a foreclosure notice, it’s normal to be anxious but we suggest you don’t panic. It’s best to see how foreclosure law in Oceanside, CA works for you before you decide what your best course of action is.
Here are some things to remember when faced with foreclosure:
Find Out What Kind Of Foreclosure You’re Faced With
These are the kinds of foreclosure:
1. Non-Judicial Foreclosure
From the word itself, this means that your property will attempt to be foreclosed outside the court of law. The owner of your property will simply seize it and sell it again to the next available buyer. This is possible because of a power-of-sale clause in your deed of trust.
Here is what your lender will do before this kind of foreclosure happens:
- They will set a meeting with you to coordinate financial solutions you can turn to in order to avoid foreclosure. A lawyer or HUD-certified counselor can attend to help you out here.
- The lender might send out a Notice of Default if you can’t come to an agreement. This can only be sent out after 30 days.
A notice of sale might be given out if you don’t catch up with payments in 90 days. - The property can be sold at auction after 21 days, and you might receive a notice to vacate in 3 days. If the house isn’t sold, ownership goes to the lender.
2. Judicial Foreclosure
This is the more expensive route on behalf of the lender, and they will rarely resort to this. A formal court petition will be enacted in order to fully repossess your home.
This is quite expensive for you as well, as you will be required by the courts to pay the difference between the selling price of your home and the total amount of mortgage. This is possible through something called a deficiency judgment.
The good thing about this method is that after a year, you have the right to buy back the property that you lost. This is called the right to redemption. Rarely does this happen, but it’s possible. Apart from the price the buyer paid at auction, there may be other fees and charges when you buy the property back.
Find Out What Your Options Are
Finding out what to do when faced with foreclosure usually happens when you receive a Notice of Default (NOD) from your lender. This indicates missed loan payments. Here’s what you can do immediately:
1. Equity
Finding out your home’s equity is crucial. For example, if you borrowed $1 million and your house is worth $1.5 million, you can opt to sell your home to pay the loan in full.
2. Short Sale
Found out that your home is less than the value of the loan you took out? Not to worry, ‘cause you can opt for a short sale.
A short sale is when you opt to sell your home even though the amount you gain is less than your loan. For example, selling a home for $900,000 is enough to pay a $1 million loan.
The difference between the two amounts will be forgiven by the lender. However, this will take an incredible toll on your credit score, which will make it more difficult for you to request for a loan in the future. Only turn to this option if equity is impossible, and you have no other means of financing your loan.
At the end of the day, paying your loan in full is best.
Sell To A Professional Home Buyer
To repay your loans as quickly as possible, feel free to contact Ignite Property Solutions LLC, where we buy houses in Oceanside, CA in any condition whatsoever. No realtors, no commissions, and no repairs needed to assure the sale of your property. We even accept homes that haven’t gone through cleaning services!
Find out how our home buying process works by visiting our website to submit your request for a cash offer. All you have to do is to give us a few quick details online and we can start buying now.
