Foreclosure in 93312>Question Details

Josh, Other/Just Looking in 93312

What factors play into the decision of a bank to go for judicial foreclosure in California ?

Asked by Josh, 93312 Wed Apr 22, 2009

I am thinking about foreclosing a home I refinanced.I have talked to an attorney with a loan modification firm and as per him my chances of getting a loan modification are about 20 %

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Judicial foreclosure in California is rarely used, and only in the absence of a power of sale clause in the loan document or when the lender is seeking a court order for a deficiency judgment. The lender must sue the borrower to obtain a decree of foreclosure and order of sale. The court may also order that the borrower has up to one year to redeem the property.

Non-judicial foreclosure is much more common in California. The bank can file a Notice of Default after 3 months of missed payments, and then foreclose as soon as 3 months and 3 weeks later. Banks are busy now, so these traditional time frames do not always apply.

If you cannot afford to make payments and you do not have enough income to qualify for a loan modification of any kind, then your best bets would be a short sale, a deed-in-lieu (not always an option), or foreclosure.

You should always consult an attorney and/or an accountant. Sounds like you already spoke with an attorney. You may want to call 888-995-HOPE (HUD-approved counselors) if you have additional questions.
1 vote Thank Flag Link Wed Apr 22, 2009
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