Tehama Country Real Estate

Tehama Country Real Estate – 3 Get the Facts on Foreclosures the television, in the newspaper, or at the coffee shop, the topic of foreclosure is being dis- cussed just about every- where these days. If the early to middle years of the first decade of the 21st century were char- acterized by the hous- ing boom, the latter years of the decade are almost certain to be looked back on as the foreclosure years. Consider the state of California. While fore- closure figures are often misleading and can vary greatly depending on the source of the information, many reports indicated that roughly 250,000 homes were in some stage of the foreclosure process in 2007. While foreclo- sure might have been avoided in a number of those cases by last- minute home sales, the mere fact that a quarter million homes were in a state of foreclosure paints an alarming pic- ture of the current real esatate and financial market. W For some, the prospect of foreclosure is made even more daunting by the uncer- tainty surrounding just what happens during the foreclosure process and what can be done to avoid it. What is Foreclosure? The foreclosure process can begin any time a mortgage pay- ment is unpaid after the due date. Some local laws protect homeown- ers with grace periods, but that depends on where you live. In order for the foreclosure hether it s on process to begin, the lender must send a cer- tified letter indicating that the loan is in default and what is owed. When Does the Process End? The foreclosure process typically ends in two ways. The ideal way for homeowners to end the process is to bring the loan current, meaning they ve caught up on back pay- ments and can keep their home as a result. Another way the fore- closure process ends is when the home is sold at auction. For home- owners who want to keep their homes, this is obviously not an attractive resolution. Foreclosure statistics can often be mislead- ing because of the first way to end the process. Oftentimes, foreclosure statistics are a reflection of homes that have entered the foreclosure process, and not homes that have actually been foreclosed upon. Since many homeowners do find ways to pay what s back owed, it s common to avoid selling the home at auction and keep the home. Is Reinstatement Law? In some states, home- owners are protected by reinstatement laws. Those laws mandate that lenders reinstate a loan if it is brought cur- rent within a certain period of time after the foreclosure process has begun. If that s done, the foreclosure is can- celed and the loan con- tinues. Not all states have this law, but many times lenders are open to reinstating a loan up to the day before it is set to be made available at auction. Sometimes, lenders will work with homeowners and allow them to pay a certain amount, sometimes lower than the amount of what is due, by a given date and then reinstate the loan once that amount is paid. While the remainder of the back-due amount is still owed, it gives homeowners more breathing room in the repayment process. However, keep in mind not all states have rein- statement laws and not all lenders are open to negotiation. Can I Actually Be Evicted? If a home has gone to auction and been pur- chased, an eviction will often take place. In gen- eral, after a sale home- owners are given roughly five days to move out. Unless a homeowner has taken a lender to court and the case is legitimate, homeowners should expect to be evicted if there home is sold at auction. Are Other Loans Associated with the Home Forgiven After Sale? Some homeowners might be surprised to find out that other loans associated with their homes, such as home equity loans or refi- nanced mortgages, are not forgiven after a home has been sold at auction. That means homeowners with such loans will be responsi- ble for paying those off even after they ve lost their home.

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