Nonjudicial foreclosure in California must follow a specific procedure. Unfortunately, many homeowners facing foreclosure wait until the last minute before contacting an attorney. If you are facing foreclosure don’t wait until the last minute to learn how you can save your home by filing chapter 13 bankruptcy.
You can stop foreclosure at any point in the foreclosure process before the Trustee’s sale by filing chapter 13 bankruptcy. You can learn more about chapter 13 bankruptcy on SantaRosaBankruptcy.us.
Foreclosure Avoidance Assessment
The foreclosure process begins with a foreclosure avoidance assessment. This step obligates the lender to contact you and anyone else on the loan to assess your financial situation and explore options for avoiding foreclosure. During this initial contact the lender must tell you that you have the right to schedule another meeting concerning how to avoid foreclosure. This meeting must be scheduled within the following 14 days. Furthermore, the lender cannot initiate the foreclosure process until 30 days have passed from the date of contact for the foreclosure avoidance assessment.
Notice of Default
At least 30 days after the initial contact for the foreclosure avoidance assessment the lender can record a notice of default in the country where your home is located, assuming you and your lender did not work out a plan to avoid foreclosure. The lender will send you a copy of the notice of default by certified mail within 10 days of the document being recorded. In turn, you will have 90 days from the date of recordation to cure the default (ie. repay what you owe).
Note: if you can’t afford to repay the amount owed right away consider chapter 13 bankruptcy. At this stage you need a binding repayment plan to work in your favor. Only a chapter 13 repayment plan can stretch your repayment over 3 to 5 years while you keep your home.
Notice of Sale
If you do not pay the amount owed, a notice of sale will be recorded at least 90 days after the notice of default is recorded. The notice of sale will state that the Trustee will sell your home within 21 days.
While this probably won’t help you, the notice of sale must (1) be mailed to you by certified mail; (2) posted on your property and in a public place (like the courthouse); (3) published for at least 3 consecutive weeks in a newspaper of general circulation in the county where the real property is located before the date of sale; and (4) have the date, time, and location of the Trustee’s sale; real property address; Trustee’s name, address, and phone number; and a statement that the real property will be sold at public auction.
You must file chapter 13 bankruptcy before the Trustee’s sale to save your home from foreclosure.