The following explanation is intended to be a broad overview of the process, and NOT an explanation of the technicalities, legal issues, or tax consequences of foreclosure.
THE CALIFORNIA & NEVADA FORECLOSURE/"SHORT SALE" PROCESS:
THE CALIFORNIA & NEVADA FORECLOSURE/"SHORT SALE" PROCESS:
The foreclosure process in California & Nevada begins after several months of non-payment by the homeowner. At some point, the bank (Beneficiary) gets tired of waiting for their payments and records a Notice of Default with the county recorder’s office, where the property is located.
Once this default notice has finally been filed, the homeowner has three-months (90 days) to either reinstate the loan(s) by paying all of the back payment PLUS any fees; or sell the property and pay off the loan(s) IN FULL. Most homeowners, try to sell their house during the three month default period; BUT, because property values have dropped so dramatically, in every price range throughout California and Nevada, rarely can the property be sold for enough money to pay off the existing mortgage(s) and any other lien(s). After the three month default period has expired, without any successful action by the homeowner, the beneficiary (bank) now files a Notice of Trustee's Sale with the county recorder's office; and schedules the property for a foreclosure auction. The homeowner, has a minimum of 21 final days to sell the property before the property is sold at the auction. If the owner does not sell, or reinstate the loan by the sale date, then the Trustee’s Sale (foreclosure auction) will take place and the house will be sold to the highest bidder.
However, 90% of these auctions have no outside bidders show up, much less bid on the property. When this happens, the beneficiary (bank) becomes the new owner of the property. Any equity or upgrades to the property belong to the bank. At this time, you must move out of your house, or face the possibility of being evicted. The end result is, you lose your home, you won't receive any money or compensation from your lender (in most cases), and your personal credit rating will be destroyed. There may also be, serious tax consequences for what the IRS calls "forgiven debt".
WHAT CAN YOU DO TO STOP THIS FROM HAPPENING?
In most cases, your best move is to negotiate a "short sale". A "short sale" is where you sell your house to a buyer for LESS THAN WHAT YOU OWE to your lender. You MUST obtain your lender's permission to do this, and your lender DOES NOT have to agree to any amount less than what they're owed. You must convince the lender that the "short sale" price is the best price that can be obtained right now; and that it is in the lender's best interest to settle your debt, rather than foreclosing and repossessing your house. Remember, your lender is only interested in what's best for THEM, not you! Your lender doesn't care about what happens to you - if they did, they wouldn't have foreclosed on you in the first place. Your lender must believe that this "short sale" offer is genuine (not a stalling tactic) and that your buyer will close on this offer, if your lender approves it. You MUST HAVE a serious buyer who can close the sale quickly, or you will not be able to convince your lender to stop the foreclosure.
WHAT CAN I DO FOR YOU?
I will handle all of the negotiations/paperwork required to convince your lender to settle. I WILL NOT charge you any fees for my time and services; and I will pay for any repair costs needed on the house, pay all of the back taxes, liens, or judgments, that may be attached to your house (conditions apply). Simply put, you pack your personal belongings, move out, and leave this headache behind you. I will buy your house "subject to" the existing financing, take all the time necessary to convince your lender to settle, and take my chances with your lender. However, there are three (3) conditions that I need to disclose to you, if you decided to pursue a "short sale" with me:
Once this default notice has finally been filed, the homeowner has three-months (90 days) to either reinstate the loan(s) by paying all of the back payment PLUS any fees; or sell the property and pay off the loan(s) IN FULL. Most homeowners, try to sell their house during the three month default period; BUT, because property values have dropped so dramatically, in every price range throughout California and Nevada, rarely can the property be sold for enough money to pay off the existing mortgage(s) and any other lien(s). After the three month default period has expired, without any successful action by the homeowner, the beneficiary (bank) now files a Notice of Trustee's Sale with the county recorder's office; and schedules the property for a foreclosure auction. The homeowner, has a minimum of 21 final days to sell the property before the property is sold at the auction. If the owner does not sell, or reinstate the loan by the sale date, then the Trustee’s Sale (foreclosure auction) will take place and the house will be sold to the highest bidder.
However, 90% of these auctions have no outside bidders show up, much less bid on the property. When this happens, the beneficiary (bank) becomes the new owner of the property. Any equity or upgrades to the property belong to the bank. At this time, you must move out of your house, or face the possibility of being evicted. The end result is, you lose your home, you won't receive any money or compensation from your lender (in most cases), and your personal credit rating will be destroyed. There may also be, serious tax consequences for what the IRS calls "forgiven debt".
WHAT CAN YOU DO TO STOP THIS FROM HAPPENING?
In most cases, your best move is to negotiate a "short sale". A "short sale" is where you sell your house to a buyer for LESS THAN WHAT YOU OWE to your lender. You MUST obtain your lender's permission to do this, and your lender DOES NOT have to agree to any amount less than what they're owed. You must convince the lender that the "short sale" price is the best price that can be obtained right now; and that it is in the lender's best interest to settle your debt, rather than foreclosing and repossessing your house. Remember, your lender is only interested in what's best for THEM, not you! Your lender doesn't care about what happens to you - if they did, they wouldn't have foreclosed on you in the first place. Your lender must believe that this "short sale" offer is genuine (not a stalling tactic) and that your buyer will close on this offer, if your lender approves it. You MUST HAVE a serious buyer who can close the sale quickly, or you will not be able to convince your lender to stop the foreclosure.
WHAT CAN I DO FOR YOU?
I will handle all of the negotiations/paperwork required to convince your lender to settle. I WILL NOT charge you any fees for my time and services; and I will pay for any repair costs needed on the house, pay all of the back taxes, liens, or judgments, that may be attached to your house (conditions apply). Simply put, you pack your personal belongings, move out, and leave this headache behind you. I will buy your house "subject to" the existing financing, take all the time necessary to convince your lender to settle, and take my chances with your lender. However, there are three (3) conditions that I need to disclose to you, if you decided to pursue a "short sale" with me:
- No promises/no guarantees of success - I can't, and won't, promise you any particular outcome or result.
- No money for you - all the money goes to your lender (bank) to settle your debt.
- I buy the house "subject to" the existing mortgage(s) - that means, once you sign the paperwork, you no longer own the house AND the loan will remain in your name, until I pay it off, OR the bank repossesses the house.
THE BOTTOM LINE:
The short sale doesn't cost you anything and if the "short sale" doesn't work, you're back to where you are right now. So, what do you have to lose? Believe it or not, even if you're in foreclosure, there still is HOPE!
This overview is intended to provide general information regarding the foreclosure process in California & Nevada; and it is NOT to be taken as legal advise. If you need legal advise, please consult with a competent attorney.
