I’ve received a foreclosure notice of default, now what?

What are my options?

A foreclosure notice of default is a document that has been filed by a lender to start the process of foreclosure on properties whereby the owner has not made any payments for at least 3 months.

The foreclosure notice of default must be sent to anyone who has an interest in the property to give them an opportunity to file any additional liens upon the property if equity is available.  Not only will the correct owner know but any other lenders who have liens on the property, contractors who have not been paid who have liens as well as government officials if taxes have not been paid.

All Foreclosure Notice in California must be published in a newspaper and physically posted in a prominent place on the property itself.   This can be an embarrassing moment for any homeowner; however, it’s actually a safety precaution to make sure it is the correct property and owner that the lender is foreclosing on.

Here are a few key steps you should take when you receive a notice of default:

• Don’t panic, stay calm.

This may sound obvious but it’s probably the most important thing you can do.   Anyone in foreclosure is dealing with a lot of stress beyond just the property situation itself.  These situations don’t get solved overnight and they take some time to bet solved.  Take a deep breath and know you’ll get through it but in the meantime practice some good coping techniques and make sure you take care of yourself and your family first.  Panic leads to bad decisions so stay cool.

• Educate yourself.

What you don’t know can always hurt you so educate yourself as much as possible on not only the process California uses for foreclosures but also on different ways you can either stop it or avoid a foreclosure.  Through education you will better understand not just the process but also as to what you can expect next.  This way, no surprises means less stress.

• Gather your resources.

There are lots of non-profit organization and government resources available to the public who can help you out with the education and in some cases help you avoid a foreclosure.  You’ll also want good legal and tax advice.  Do not skip this step.  Do not try and go it alone and don’t do nothing.  When you build a knowledgeable team around you, you will avoid a foreclosure if you take the action suggested.  Here is some additional information for you.

• Learn your options.

There are multiple options available to you and if you’ve built your team of tax,  legal counsel, realtor and the help of an organization set up just for this purpose you should be able to create a clear path on what to do and when.  We, as house buyers, are here to help you avoid foreclosure in California.  We buy houses with cash that are in foreclosure.  Some have equity, some need to do a short sale.  Selling a house to a cash buyer is one of those options.

I’m sure you’ve heard this before; “Communication is key”.  Don’t go and hide under the covers, it does no good.  Over the years we have all heard that the banks are bad and they want your property.  That couldn’t be further from the truth, well at least about them wanting your property.  What they want is a performing note; one which the owner of the property is paying on.  They don’t want your property or anyone else’s.  It’s a liability to them and cost them more money to foreclose and put the property back on the market.  In most cases they take a loss.  Yes, I say that with a grain of sand cause, yes, there’s also been a lot of scandals over the past 10 years but in general, they don’t want to foreclose except to get rid of the property.  So, communicating with the lender and letting them know what your doing is key.  In many cases it helps to either stop the phone calls or at least bring them down to a minimum.

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