If you’re worried about losing your home to foreclosure and you’re falling behind on your mortgage payments, there are some financially smart things you can do to save your home. It is 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 hold a foreclosure sale during the proceedings, which takes 3-4 months? The lender can ask the judge to get around that general rule and foreclose early or order 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 his or her good faith, the judge will sometimes allow it. Again, it’s best to ask your bankruptcy attorney what to do and how to do it to give yourself the best chance of keeping your home when you’re done.
Can you stay in your home after foreclosure in California?
It turns out that he can stay in his house after foreclosure and until the final sale, although that would be sealing the deal. Generally speaking, after a foreclosure, the actual sale takes 2 months to a year. This is the case for both 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 party, a homeless squatter, moves out and stays. in the house until it is sold, often even the new owners try to move out. Sometimes the new owners have to go and get an eviction notice, which also takes time. It’s an interesting world we live in, but that’s what’s happening here in California.
In Ventura County, there have been a large number of cases where this has happened. Squatters learn about loopholes in the law on the Internet, often by watching YouTube videos. Some of the advice is rubbish, some is valid. Either way, it is causing a problem in neighborhoods around the Ventura County area and in nearby adjacent neighborhoods that are in Los Angeles County.
Can You Buy a New Home After Filing 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 complete, you will be able to qualify for a home loan and mortgage as long as you have adequate income at that time to pay the 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 right details.
What can I keep of my house if the bank forecloses?
This is a very important question, and if you get it wrong, you could end up in jail for grand theft. You cannot bring solar panels, water heaters or any built-in appliances. Don’t try to take away garbage disposals, trash compactors, built-in kitchens, dishwashers, or air conditioning systems. You can’t take burglar alarms, smoke detectors, or smart home systems that are built into the home as an integrated system. You can carry televisions, refrigerators, and washers and dryers.
An exterior patio system that is anchored to the home on one or more sides or the top may not be brought in. Basically, the law says that you can’t take anything attached to the building or land. Again, take these rules seriously and if you have any questions, consult your bankruptcy attorney. If you have to leave and you’ve exhausted all other avenues, do it right. You don’t want to start your fresh start 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 to repossess your house, it just wants to get paid. Therefore, it is in their best interest to work out a favorable settlement that will have you making payments again until the mortgage is paid off in full. Sometimes lenders don’t budge an inch on the first request, but when a lawyer contacts them on his behalf, it’s amazing what he can negotiate.
If you pay off your mortgage, the lender can’t foreclose, obviously, 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 principal back, your credit will be excellent after you’ve paid it off.
Other considerations
After the 2008 real estate crash, many managers made mistakes on paperwork. The court no longer takes his 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 at best, could save you tens of thousands of dollars and a truly stellar renegotiated mortgage rate and terms. Make sure you learn all the facts.