Even with the best intentions, the worst circumstances can cause you to fall behind on your mortgage. Anything from the accumulation of medical bills to the loss of loved one may force you to choose between which financial obligations are the most important to meet. Sometimes, it is tough to call. Most often, however, caring for your own health or that of your family’s simply takes precedence. Still, these kinds of choices frequently have unintended and far-reaching consequences—especially if the bank comes calling to repossess your home. As hopeless as that can feel, resources are available to help you avoid foreclosure. One option is to short sell your home. Finding short sale help for California homeowners, like you, is not hard to do. It is also not the only option you have.
Your lender has been sending you regular “reminders” of your overdue mortgage payments and probably has even warned you that this was coming. But it can still be a shock when a notice of default arrives in the mail. It makes your financial problem official. But now is not the time to dwell on the negative; you need to take clear-headed and decisive action. Understanding what the California notice of default means and what you can do about it is the first step, so let’s start there. Then we’ll give you some suggestions for how to avoid the foreclosure altogether and even settle the issues with your mortgage lender in a simple and stress-free way.
Some problems have a snowball effect. Maybe you lost your job and, even if you were only unemployed for a short time, now you are having trouble paying your bills. Your mortgage is the biggest concern because you have a lot riding on it—your home, for one, and your credit score as well. You need to understand foreclosure in California and what happens to your credit score so that you can avoid as much damage as possible. There are multiple steps involved in foreclosing on a property and you have ways of protecting yourself as they take place. You’ll need to act fast, though, because your options become more difficult and less effective as the foreclosure process goes on. In the end, selling your house quickly may prove to be the best way for you to sidestep foreclosure altogether and preserve your credit standing.
You may not want your bank to know that you’re facing financial difficulties. It’s the kind of conversation that we all would prefer to avoid. But that is the first thing you should do when you realize there is potential trouble with your mortgage payments ahead. Believe it or not, your bank does not want to foreclose on your house, so it may be able to offer some solutions for you. But the bank can only be so flexible. It is, after all, a business and it has its own financial interests to look after. Working with or without the bank, there are several alternatives to foreclosure available to you. Let’s look at the pros and cons of your options, including staying in control of your finances by selling your house.
When the unexpected happens, like a debilitating illness, the loss of a job, or divorce, the burden to care for yourself and your family can become so great that your financial obligations have to take a back seat. Sometimes that includes making the mortgage payments on time, if you’re able to at all. Miss too many payments, however, and you could find the bank taking action against you by filing for a foreclosure with the court. Trying to decide what to do if your house is being foreclosed on can just add to the confusion, disappointment, and grief you and your family may already be feeling. If you’re in this situation, take heart. There are reputable resources available throughout California that are designed to help homeowners who are facing foreclosure—no matter the reason why.
If you’ve missed a mortgage payment or two and are concerned that the bank may foreclose on your home, take heart. There are things you can do to avoid foreclosure. No one wants a home foreclosure—neither you nor your lenders. Your lender wants payment, not a house. They may be flexible in helping you keep your home. If all else fails, you may find that selling your house is the best solution for you.