Have you received a foreclosure notice of default and want to know what it means? If so, keep reading.
A foreclosure notice of default is a document that your mortgage lender files to start the foreclosure process on your home. Besides the homeowner receiving the foreclosure notice of default, it must also be sent to anyone else who has an interest in the property. For example, any other lenders or lien holders. The foreclosure notice of default must also be published in a local newspaper and must be physically posted somewhere on the property. Although receiving a foreclosure notice of default is not a pleasant event, it is actually an important piece of protection for California homeowners.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Ventura County. The notice of default gives anyone with any interest in the property a chance to claim their rights before it is too late and the property gets foreclosed on.
If you’ve received a notice of default, time is of the essence and you should take action as soon as possible. Waiting until the last minute to figure out your options is the last thing that you should do.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
Going through the foreclosure process can be a stressful time in your life. The one thing that you have on your side is that foreclosures don’t happen overnight, so you will have time to work through your options. There is no need to panic right away, so although it may be easier than it sounds, stay calm knowing that you have at least several months to work with.
2) Educate yourself.
Make sure to educate yourself about the foreclosure process in California. For starters, you can visit the California Courts foreclosure page. Our site also has a page about the Foreclosure Process In Ventura County .
3) Gather your resources.
There’s also many non-profit and government resources available out there. You’ll want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules.
4) Learn your options.
After you’ve done your homework about the foreclosure process, it’s time to explore your options. Here at Dream Home Property Solutions, LLC, we have helped Ventura County residents avoid foreclosure, and we can help you too. In some cases, we are unable to help stop the foreclosure, but we can help with other options you may want to pursue. We can buy your house with case so that you can take advantage of any equity you may have. We can also help you with a short sale or even a rent-back situation so you (potentially) may be able to keep living in your home.
Although this is last on the list, it may actually be the most important step. Make sure that you communicate with your lender as soon as possible and as often as possible. Believe it or not, banks are not in the business of owning homes, and it actually costs them quite a bit of money to foreclose on people. Although all banks are different, there is a good chance they will try to help you with your situation if you talk to them and describe your situation to them.