Foreclosure is the legal process by which a defaulted borrower is deprived of his or her interest in a mortgaged property, or a property with a lien secured to it by a similar instrument such as a deed of trust.
There are two different types of foreclosures; judicial and non-judicial. Almost all foreclosures in California are handled non-judicially. A judicial foreclosure is when the lender uses court action to foreclose, and the non-judicial foreclosure is when the lender uses the power of sale which you gave them when you signed your deed of trust.
If you ever wondered why you rarely see an actual mortgage in California, there are a couple reasons, at least.
One reason is under a mortgage, an expensive court process is typically used to foreclose; the lender files and wins a lawsuit to foreclose. A deed of trust typically includes a power of sale clause making it much less expensive and easier to foreclose.
Another very important reason we typically use a deed of trust in California is; when the beneficiary (lender) wants to foreclose, they will usually do it non-judicially avoiding the redemption period. If they chose to do a judicial foreclosure, the trustor (borrower) would have a right to redemption for 365 days after the sale to reclaim the property. That would make the home much less desirable so the bank will probably have to hold the property on their books until the redemption period is over. That is very expensive for the bank and they will avoid it if at all possible!
How Can We Help?
Facing the process of foreclosure is no doubt one of the scariest things that can happen to you financially. You probably have no idea how the process works, and you don't know where to turn for help.
Fortunately, there are options that can help you avoid foreclosure. The reality is that your bank does not want to have to foreclose on your home, and you don't want them to have to either. The bank would rather make a deal with you to avoid the costly foreclosure process, and you would rather avoid the foreclosure and salvage your credit, and do what's responsible.
A home should almost NEVER go to foreclosure. The reason they do is because those homeowners didn't know their options, and they didn't have someone working on it with them!
Our services include a free consultation to see exactly where you are at in the foreclosure process, and help you decide what your best course of action is. First, we'll decide whether or not a loan modification or other lender workout is possible. If that doesn't work out or you clearly aren't a good candidate, the next most responsible thing to do is to sell the home. Yes, you can sell the home for less than what you owe, but it will be subject to the lender approving a short sale. Included in our Short Sale Service we will work with your lender and trustee to postpone your foreclosure and push back your sale date as many times as needed in order to reach an agreement with your lender and avoid foreclosure.