Foreclosure in Torrance>Question Details

Sarah K. Mac…, Home Buyer in Torrance, CA

30 days late on mortgage w/private lender & he said foreclosure proceedings are starting. What are my options?

Asked by Sarah K. Macias, Torrance, CA Fri Aug 22, 2008

Can my home go into foreclosure after being 30 days late? Are foreclosure proceedings different if the home is under a trust deed & was financed through seller financing?

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Good Morning Sarah,

With it being a private lender the terms and conditions i am sure will be different than had you used a bank. Your best way is to bring the payments current, then they cant foreclose. Being a trust deed you will bneed to check with a local mortage broker or real estate attorney if you can just refinance. Yes they can foreclose after 30 days, the foreclosure proceedings will be the same as any foreclosure, and you do have the right to cure the problem by paying the back amount due, but note once teh foreclosure starts you will be responsible for thise costs in addition to the back payments you owe. You need to read you mortgage you signed and see what they put in there for default triggers and remedies. Again easiest way is bring it current, if you cant you may want to see if you can get a quick sale and recover some money. Good luck
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0 votes Thank Flag Link Fri Aug 22, 2008
If this was a one time occurrence and you can bring your payments up to date and continue to make them on time, explain the reason to the lender and never be late again. If you are in a situation where you no longer can afford to make the mortgage payments, talk to the lender, a realtor, and an attorney about short sale vs. bancruptcy. For the lender, you will need to present your income and your bills showing that you cannot afford the home. You will need to be sure to ask if they will accept the amount the home can be sold for as payment, release the deed/title, and forgive the debt. A short sale will not help you if the lender allows the home to be sold but holds you liable for the mortgage you signed with them. You need to have them forgive that debt. A realtor can help you by presenting the lender with documentation showing that the home will not sell for the amount of money owed on your mortgage. Communicating with lenders in this scenario is time consuming and not all realtors will want to be involved in this process so find one that is willing to do short sales. The attorney can advise you about the legalities of foreclosure and also help you determine if bancruptcy is a better option in your particular situation. Open the lines of communication immediately.
Do not procrastinate.
The biggest mistake people make is in waiting too long to tell anyone they are in trouble. Yes, it may feel emabarassing and unpleasant to tell people you can't pay your bills but the sooner you get help and a plan to get out from under the debt, the better chance you have of getting the home sold short and avoiding bancruptcy. Some lenders will view a short sale the same as a bancruptcy; others will place more weight on the bancruptcy than a short sale. They will consider that you were more responsible in finding a solution to minimize losses to all parties by working together to do a short sale.
Good luck to you whatever you decide.
0 votes Thank Flag Link Fri Aug 22, 2008
Hello Sarah. Yes, theoretically, default proceedings can be started with you even only being 1 day late, but of course nobody does that. If there was a deed of trust, that means that the owner does not have to go through judicial foreclosure (i.e., file a lawsuit), but it also means that there can't be a deficiency judgment if the lender chooses to proceed under the powers given to him under deed of trust. I believe, in CA, there can't be a deficiency judgment on a seller carryback even if the seller who carried back does a judicial foreclosure (you should check with an attorney on that). Other than that, I am not aware of any special rules for private lenders. Again, you should check with a CA attorney who specializes in that field as only a licensed attorney may give you legal advice. Trulia Voices is a great forum to get info, but when it comes to legal advice, Trulia Voices is not the right place. The law governing foreclosures is quite complicated and following correct procedures is essential. The problem is that for a borrower, it's almost impossible to figure out whether the lender (private or institutional) followed proper procedures. Once you have a notice of default (i.e., the first step in the foreclosure process), I doubt there's a lender who will be willing to refinance. Not knowing your particular circumstances, I don't know what viable options you might have. Obviously, the best thing would be if you could come current on the loan and cure the default. I hope you'll be able to work out a solution that will allow you to avoid foreclosure. Good luck to you.
0 votes Thank Flag Link Fri Aug 22, 2008
Ute Ferdig -…, Real Estate Pro in New Castle, DE
good morning sarah....the quickest ,cheapest way to save it is to bring the payments current....your lender, at his discretion can accept partial pymts, but if they do, the fc proeedings must begin all over......if you have or can get the $ to cure the that....last ditch effort would be to file a ch 13 bk prior to the sheriff's sale..doing it after the sale wouldn't help you.....lastly....the comment about refinancing with another lender probably wouldn't work.....if your pymts have been slow on this might work fha assuming your mortgage requirements do not exceed the fha loan limits. for the county you are in..late pymts of any kind can be explained out and many times overcome if there was an event that was beyond your control that caused them..i hope that helps.......bob mcclure- mortgage now- farmington, michigan. (248) cell....i am licensed in your state and 18 other ones...
0 votes Thank Flag Link Fri Aug 22, 2008
If you have some equity left, start refinancing with another private lender. I am assuming you don't have the money to pay current? Send me an email and I will send you the foreclosure timeline. It takes some time before they can force your home to sale. Urgency is important. I can also provide you with some private lenders, who may be able to help you out.

Welcome Home Real Estate & Finance
Adrian Huntington
925-818-6694 Cell
39 California Ave Suite 204
Pleasanton, CA 94566
Making homeownership a reality.
0 votes Thank Flag Link Fri Aug 22, 2008
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