Personal Service From the Realtors You Can Trust!Claude Braunstein and Associates
Claude Braunstein & Associates

FORCLOSURE PROCESS IN CALIFORNIA


When someone borrows funds to purchase a home in California, most lenders require that the borrower, referred to as the Trustor, execute a Deed-of-Trust in favor of a Trustee, who holds Title on behalf of the lender, referred to as the Beneficiary.  The Trustee reconveys the property to the borrower when the loan is paid in full.

When the borrower fails to makes payments as agreed, the lender notifies the Trustee who then files a Notice of Default with the County Recorder.  A copy of the Notice of Default must be provided to the borrower.  This starts  the foreclosure process.

The borrower usually has three months to pay the arrears and bring the loan current.  If this is not done, the Trustee must publish a Notice of Sale in a newspaper of record stating, among other things, the date on which the property will be sold at auction.  Although there is nothing to compel a lender and/or Trustee to proceed as fast as possible, the entire process can be accomplished within three months and three weeks of the time the Notice of Default is filed.

If you receive a Notice of Default, take it seriously.  If you are having temporary difficulty in making the payments, the lender may agree to temporarily add a couple of payments to the principal balance.  There may be other options as well.  The best thing to do is to find out what those options are.  You should consider consulting an attorney and/or one of the non-profit foreclosure counseling services such as The Homeownership Preservation Foundation who offers free foreclosure counseling by HUD approved counselors.  The foundation can be reached at 888-995-HOPE.  Their website is www.995-HOPE.org .

The above information is of a general nature and is intended to give borrowers an overview of the foreclosure process in California..  The information given does not constitute legal advice, which can only be provided by a licensed attorney.  A borrower facing foreclosure should take immediate action to deal with the situation, as available options, such as selling the home, will diminish rapidly as time goes by.

The homeowner may sell the encumbered property during the foreclosure period..  It is even possible to sell the home for less than the total amount of the encumbrances against the property, with the lenders concurrence, a process referred to as a Short Sale.  If you are interested in exploring the possibility of a Short Sale, contact Realtor Claude Braunstein at 858-271-7770 or by e-mail at Claude@ClaudeBraunstein.com .  There is never a charge for a Short Sale consultation.

Claude Braunstein has been listing and selling homes in San Diego for over 30 years.  He is affiliated with Windermere Homes & Estates.  In 2005, he ranked in the top 1% among Coldwell Banker agents worldwide. Claude can be reached by telephone at 858-271-7770, or by e-mail at Claude@ClaudeBraunstein.Com.

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