If you are reading this chances are you are either behind on your mortgage and about to go into foreclosure or you are actually in foreclosure. You are most likely very unsure and possibly scared about what is coming and what you can do about it.
The first thing you need to realize is TIME IS NOT ON YOUR SIDE. If you want to keep your home it is extremely important that you contact us immediately.
Let’s take a minute to answer some basic questions:
How Does Foreclosure Work in California?
A foreclosure is the process that a mortgage company has to go through to take possession of your home. They do this when you get behind on your mortgage payments. In California, the first thing that happens is a document called a NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST is filed with the county recorder’s office. You are sent several copies of this in the mail, both regular mail and certified mail. This Notice of Default starts a 90 day reinstatement period. After the 90 days are up the mortgage company then files a NOTICE OF TRUSTEE’S SALE. You will also receive several copies of this and one will be attached to your home. This Trustee’s Sale notice will have a date and time on it. This is the date and time of your trustee’s sale. After this date and time, the home will no longer be yours.
Can you save your home?
A Chapter 13 bankruptcy will stop a foreclosure and set up a payment plan with payments you can afford. When the Chapter 13 is filed an injunction is put in place which stops all collection actions against you, including foreclosure. The chapter 13 will allow you to get caught up on the back mortgage payments by forcing the mortgage company to take smaller payments over a longer period. You can stop lying awake at night asking yourself, “how can I save my home”.
Does a Chapter 13 work in every case?
Yes. In California, a Chapter 13 will always stop a foreclosure as long as the case is filed BEFORE the sale date and you follow the rules of the court and you make the Chapter 13 payments as they are set up.
There are many, many other questions that people have, such as: What would my Chapter 13 payment be? How much does a chapter cost? How would it affect my other debts? How will this affect my credit? Can this really help me keep my home? We can answer all of your questions when you come it to the office for your FREE CONSULTATION.
Please call our office immediately and set an appointment to come in for the FREE CONSULTATION. At the consultation, you will learn exactly how a chapter 13 will work for you. You will learn how it will affect all of the debts you have. We will tell you what you will be looking at as a chapter 13 payment. We will make sure that chapter 13 is a workable option for you. Chapter 13 is not for everyone, and if it is not for you, we will tell you.
What if you don’t want to keep your home?
If the foreclosure is allowed to complete then the house will no longer belong to you. But THAT IS NOT THE END OF IT. The lender will sell the house at a public auction. If the property sells for less than the amount owed to all mortgage companies, in California those companies may have the right to come after you for the remaining balance owed to them. YOU COULD STILL OWE A LOT OF MONEY ON A HOUSE YOU NO LONGER OWN. Also, the mortgage company may report the amount of their loss to the IRS as income to you. YOU COULD OWE INCOME TAXES BECAUSE YOU LOST YOUR HOME IN FORECLOSURE. A Chapter 7 bankruptcy can wipe out the balance owed to the mortgage company and also eliminate the risk of owing taxes for the foreclosure.
At the Law Office of John C. Kyle and Gregory J. Smith we have over 65 years experience helping people in situations exactly like this. We understand the law and know how to use it to help you.