California's Foreclosure Alternatives Review Process
Michael Hanks, CPA (retired)Defaulting on one’s loan causes the start of foreclosure process in California, the process by which the lender takes over the home in order to recover their principal investment. The primary foreclosure process used in California is the non-judicial foreclosure process. Fortunately, lenders want your money and the interest that comes with it, not your house. But if the lender chooses to take your house, the California non-judicial foreclosure process is used in most cases because it is faster and less costly (for them) than the judicial foreclosure process.
This California non-judicial foreclosure process kicks hundreds of homeowners to the curb every day. A non-judicial foreclosure typically takes as little as 120 days from the day that the NOD (notice of default) is recorded. The non-judicial foreclosure process in California is adminstered by the lender's attorneys, and they rarely make mistakes that would prevent them from taking your home once they make the decision to do so.
Foreclosure Alternatives Review Process
Homeowners who are overdue on their monthly mortgage will be contacted by the lender to identify alternatives to the foreclosure process in California. Homeowners might not be provided with the options they want or that make sense, however. For example, payment plans offered might actually be higher than the original monthly payments that were missed. To make matters worse, often lenders will not make their best possible offer, and are reluctant to make any other concession to the homeowner if it has a cost for the lender. This process can be especially unpleasant for homeowners who have borderline affordability issues.
After the lender’s review is completed, the foreclosure process in California authorizes the lender to file the notice of default and begin the official “foreclosure”.
It is recommended that homeowners find some help long before it ever gets to this stage in the process. Fortunately, good help is out there, and it is often available for free.
Reader Comments (2)
Fortunately, good help is out there, and it is often available for free.
Give me names Les, give me names. Forgive the WKRP reference, but I could use some advice in this area.
thanks.
I've been really confused about this whole process of foreclosure, and my bank has been anything but straight forward and useful. I did find this website to be extremely helpful though: www.CAForeclosureAlternatives.com. I also emailed them and they got back to me right away and were very informative.