If you’re worried about losing your home to foreclosure and falling behind on your mortgage payments, there are some strategic financial things you can do to save your home. It’s best to learn about the foreclosure laws in our state and understand the well-documented case law. You should probably immediately seek the professional advice of a bankruptcy attorney who has dealt with these issues if you want to avoid foreclosure.
Did you know that once you file Chapter 7 Bankruptcy in California, the bank cannot make a foreclosure sale during the 3-4 month proceeding? The lender can ask the judge to circumvent that general rule and foreclose early or apply for a foreclosure sale, but it is rarely granted without extenuating circumstances.
In Chapter 13 Bankruptcy, you will have to keep up with your mortgage payments and / or make a deal with your lender; otherwise, the lender can ask the judge to foreclose anyway. Depending on your relationship with your lender and your good faith, the judge sometimes allows it. Again, it is best to ask your bankruptcy attorney what to do and how to do it so you have the best chance of keeping your home when it is gone.
Can You Stay In Your Home After Foreclosure In California?
Turns out, you can stay in your home after foreclosure and until the final sale, although that would be cutting it down. Generally speaking, after a foreclosure, the actual sale takes anywhere from 2 months to a year. This is the case with judicial and non-judicial foreclosures.
In fact, in California, there is a terrible problem where the family that once lived in the house before foreclosure leaves as requested, but then a new part, a homeless squatter, moves out and stays in the house. house until it is sold, often even the new owners try to move out. Sometimes new owners have to go and get an eviction notice, which also takes time. It is an interesting world that we live in, but that is what is happening here in California.
In Ventura County, there have been a large number of cases where this has happened. Squatters learn about loopholes on the Internet, often by watching YouTube videos. Some of the tips are rubbish, some are valid. Either way, it is causing a problem in the neighborhoods around the Ventura County area and in the nearby adjacent neighborhoods that are in Los Angeles County.
Can you buy a new home after filing for Chapter 7 bankruptcy?
The answer to this question might surprise you. After all, people assume that filing for bankruptcy is the kiss of death, and your credit will skyrocket forever or at least a decade. Not so. In fact, 24 months after the date your bankruptcy is completed, you will be able to qualify for a home loan and a mortgage as long as you have adequate income at the time to meet your loan payments.
For Chapter 13 bankruptcy, the situation is similar, but there are other things you need to know and you should contact a bankruptcy attorney in your area who specializes in these places to get all the correct details.
What can I keep from my home if the bank forecloses?
This is a very important question and if you are wrong, you could end up in jail for grand theft. It cannot carry solar panels, water heaters, or any built-in appliance. Don’t try to take garbage disposals, trash compactors, built-in kitchens, dishwashers, or air conditioning systems with you. You cannot take burglar alarms, smoke detectors, or smart home systems that are built into the home as an embedded system. It can carry televisions, refrigerators, and washers and dryers.
You cannot take an outdoor patio system that is anchored to the house on one or more sides or on top. Basically, the law says that you cannot take anything attached to the building or the grounds. Again, take these rules seriously, and if you have any questions, consult your bankruptcy attorney. If you have to go and have exhausted all other avenues, do it right. You don’t want to start over with a new criminal conviction, that doesn’t look good on any resume.
There are ways to prevent foreclosure in California
The easiest way is to ask your lender for a loan modification. The bank doesn’t want your house back, it just wants you to get paid. Therefore, it is best for them to reach a favorable agreement that forces you to make the payments until the mortgage is paid in full. Sometimes lenders don’t budge an inch on the first application, but when an attorney contacts them on your behalf, it’s amazing what they can negotiate.
If you cancel your mortgage, the lender obviously cannot foreclose, which is one more option. Get a loan from another source and pay off the mortgage. You can also sell your home at a short sale or for the remaining amount of the mortgage. Although you won’t get any equity back, your credit will be excellent after it’s paid off.
Other considerations
After the 2008 real estate crisis, many managers made paperwork mistakes. The court no longer takes your word on the borrower. If they made a serious mistake, your attorney will now be in a very favorable position to negotiate for you. At the very least, your bankruptcy and foreclosure attorney will get the lender to start the process all over again and could save you tens of thousands of dollars and a truly stellar renegotiated mortgage rate and terms at best. Make sure you know all the facts.