Are you looking for California homeowners options to stop foreclosure? There are lots of options to help you keep your home in California, even if you are facing foreclosure.
First steps
Your first step should be to call your bank or moneylender, asking them to reinstate your current loan. This may give you an opportunity to pay a lump sum to make the loan current, or they might allow you to make the loan current by paying on schedule to your lender in a new agreement. Sometimes, the problem can be solved by simply explaining that after a few tough months, you are ready, willing, and able to work something out that will work both for you and your lenders.
Another option is to instate a Forbearance Agreement, in which a deal is negotiated with your bank in that they add onto the final amount owned in back payments for the loan, taking a smaller portion up front and adding the rest to the back end of your current loan. Perhaps they could even forgive the rest.
Selling Your Home in a Short Sale
If you cannot work out the payments, you can still stop foreclosure in some cases. it is possible to sell your home on your own. Spread the word about selling your home, and put a sign out in front of your house. You could also work with a realtor, but this option will cost you more. It is even possible to sell a home to another party for less than what you owed in some cases, if you can negotiate with your current lender. This process is known as a “short sale.” This process helps you avoid having your home auctioned off at foreclosure, is less damaging to your credit, and is often more beneficial to the lender as well because he does not have to actually foreclose.
Stopping Foreclosure With Chapter 13 Bankruptcy
Filing Chapter 13 bankruptcy is another possible option to stop foreclosure, but you should understand how bankruptcy works. You are not free of all responsibility. In Chapter 13 bankruptcy, you do not sell all of your assets. Instead, you keep your assets, but payments will be assessed much like a debt consolidation plan. As soon as you declare Chapter 13 bankruptcy, foreclosure actions will stop... but you don't get to keep your home unless you get current and/or establish a payment plan.
When you file Chapter 13 bankruptcy, you will pay monthly payments on all of your debt, usually for smaller amounts each month than you were originally paying, and payments for your debt must be paid for up to five years each month. If any payments are missed, the trustee will dismiss your Chapter 13 Bankruptcy, and you will have to begin the process of dealing with foreclosure once again. This should certainly be your last option.
Other Legal Options?
If you are looking for more information about California Homeowners options to stop foreclosure, consult with an attorney for the options that might be right for you.
