Sometimes it takes another set of eyes to see through the chaos and help you develop the best strategy when dealing with an impending Foreclosure. There are experienced professionals that can help you but sometimes its just knowing where to look. If you found this article, then you found me and I would suggest that you call me today to discuss the options available.
My name is Peter Westbrook and I have been working with homeowners get through the threat of a Foreclosure for over 9 years in Stockton, Sacramento and Modesto. You have options, but first its important to understand what a Foreclosure is and its devastating effects.
Understanding the foreclosure process in Stockton is an important part of gaining control of your own home foreclosure and allows you to navigate the options available to you. While there are many ways to avoid a foreclose in Stockton, the best and most sure way is to develop a plan to pay it current.
I understand that that may be impossible with your current circumstances, but sometimes you need to think outside the box and make choices that are in your best interest today to Stop a Foreclosure in Stockton and avoid losing all of your equity so you can get on with your life.
Unlike any other period in the real estate market, the last decade saw more foreclosures than in any period of American history. The epidemic was nationwide and did not skip any neighborhoods. While the crisis itself is over, there are lingering effects to many homeowners of the great recession and it is still present while some are hanging on month to month.
Read more: How Does it Work?
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
For most Homeowners Foreclosure is devastating. But it may not be the end of the world if you can build a plan and gain the assistance you need to Stop Foreclosure altogether.
When you know how foreclosure in Stockton works… it arms you with the knowledge to make sure you navigate it and come out the other end prepared to move on with your life. Sometimes its as simple as restructuring debt and other times its developing an exit strategy that allows you to be free from a problem property.
The Basic Stages of A Foreclosure
There’s a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are: judicial sale or power of sale.
Call me (209) 481-7780 or contact us through our contact page to have us walk you through the specific foreclosure process here locally in Stockton.
In either scenario, foreclosure typically isn’t initiated until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Under Judicial Foreclosure:
- Your mortgage lender must file suit in the court system.
- You’ll get a letter from the court demanding payment.
- Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
- If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property for the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
Related: should you short sale?
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.
It is ALWAYS best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Westbrook Stops Foreclosure to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Stockton, we can help you.
We buy houses in Stockton CA like yours from people who need to sell fast.
Give us a call anytime (209) 481-7780 or
fill out the form on this website today! >>
Other Foreclosure Resources For Stockton CA HomeOwners: