Many homeowners are finding it hard to make their mortgage payments due to the economic situation. Many homeowners have lost their jobs; some can’t make enough sale to cover their monthly payments due to the international traveling ban. There are various reasons why many default on their mortgage payment. Your lender can only wait so long. After 3 to 6 months of missed payments, they will foreclosure your home. Although the federal law mandate that your lender wait for 120 days after you missed the first payment before initiating foreclosure, that is about four months, and your home will be foreclosed.
In California, the foreclosure process is usually non-judicial, which means that your lender does not have to file a petition to court before foreclosing your home. The non-judicial foreclosure process is usually faster than the judicial foreclosure process. This places a lot of pressure on homeowners who are trying to stop foreclosure. However, various state laws allow you to stop the foreclosure process in California.
California law permits homeowners to stop foreclosure using loan modification alternatives. Provided the application is submitted at least 14 days before the scheduled foreclosure sales date. Any application submitted within 14 days to the foreclosure sale date won’t be processed, and foreclosure proceedings will continue. Therefore, if you still have time on your side, file out a loan modification application and submit as soon as possible. Using a loan modification option to stop foreclosure will make it easier for you to get back on track with your mortgage payment.
If you can get enough money to pay off your missed payments plus other incurred charges, your loan will be reinstated. The law permits you to reinstate your loan up to 4 days before a foreclosure sale date. Anytime after that, your lender won’t grant your request and will continue with the foreclosure process. Try your best to raise enough money at least a week before the scheduled foreclosure sales date to increase your chances of stopping foreclosure.
There are many more alternatives you can use to stop foreclosure in California. Talk with your lawyer to find out more.