Facing foreclosure can be a traumatic experience for homeowners and their families. The thought of losing the roof over your head is a scary one, and many homeowners do their best to avoid it. However, some things happen that are beyond our control and can greatly impact our finances. One of those situations is the 2008 crisis, which leads to thousands of homes been foreclosed. The effect still lingers on, and many homeowners are still struggling to make payment. However, finding out important information about how the foreclosure is processed in California will save you a lot of stress and help you save your home.

California’s foreclosure process is usually non-judicial, which implies that your lender does not have to go to court before they can foreclose your home. Occasionally some lender uses a judicial foreclosure process, but it’s not common. The journey to foreclosure starts when you miss a payment on your mortgage loan. Your lender will contact you to ask for their money and to make suggestions about available solutions. However, if you do nothing and keep missing your payments, you might risk losing your home. The federal law mandate that your lender wait for 120 days before taking steps towards foreclosing your home. After 120 days that you missed the first payment, your lender will send a notice of default, letting you know your loan state.

The best way to stop foreclosure is by repaying your missed payments or filing for bankruptcy in California. If you can make enough money to pay off your missed payments with other incurred charges such as late fee charges, etc., your lender will be willing to reinstate your loan. However, if you don’t have much money and don’t want to lose your home, you can file for chapter 13 bankruptcy. Chapter 13 bankruptcy will help you stop foreclosure immediately and allows you to create another repayment plan depending on our financial capacity.