It takes significant effort and hard work to be able to afford a home mortgage in California. The news across Roseville which is about loan foreclosing is very saddening. The thought of losing home can be worrying for anyone. Residents despite several efforts are not being able to safeguard their home due to mortgage foreclosure in Roseville, California. To know more about mortgage, secured/unsecured loans and other important financial aspects, log on to Recovery Law Group for complete a to z knowledge.
Types of home mortgage and lien
Even millionaires and billionaires have a mortgage for their homes as affording a home in California is not an easy task. Accumulating thousands of dollars at once is not at all easy. People with a home mortgage will definitely agree with that. While some people take up a higher percentage of home mortgage and a lower percentage of down payment, the rich ones might just opt for the reverse if they have liquid funds in their hands. The second method to avail home loan is to buy offering equity in the home after the purchase of the home. No matter if you choose the first one or the second one, there is bound to be a lien for the lender/creditor on your home. Lien is a right to liquidate or acquire the asset in case the debtor has defaulted or is not even in a position to pay off the debts.
Types of foreclosures
If the debtor fails to make timely advances to the home mortgage lender, the lender has the authority to foreclose the mortgage loan. Foreclosure results in selling of home and clearing of dues for the lender. There are basically two types of foreclosures commonly seen in case of a home mortgage-
- Judicial Foreclosure
As the name suggests, judicial foreclosure refers to a judicial clause being implemented. Every home mortgage has an agreement and power-of-sale clause attached in the trust deed document. This is activated when the debtor defaults on multiple payments. The court-appointed trustee usually sells the home and facilitates the proceeds of the home to the lender.
- Nonjudicial foreclosure
Nonjudicial foreclosure is an out of court sort of settlement which is the desired one by most lenders as it is less costly and quicker. The lender usually takes over the home and either use it or auctions it to get his/her debt recovered.
How to prevent unauthorized nonjudicial foreclosure?
The nonjudicial foreclosures are being forced upon the Roseville home residents is really shocking. Most residents do not know their rights and are being tricked into quick foreclosures and auctions of their residence. In order to better equip you, we shed some light on your rights if the lender tries to foreclose your home mortgage nonjudicially-
- Firstly, the lender cannot simply initiate foreclosure, he has to connect with the resident, discuss and evaluate his/her financial situation
- Even after the first step, the lender has to wait for at least 30 days, to begin with the process of foreclosure. During these 30 days, you can consult an attorney, decide on viable ways to address the situation, negotiate and find a solution to protect your home.
- Also, if your home mortgage agreement is void of any power-of-sale clause, the lender then has to consider the judicial foreclosure option only as the nonjudicial foreclosure can be illegal.
Judicial foreclosure is pretty uncommon in states like California due to the high cost of litigation, time and fees. However, judicial foreclosure can prove beneficial in 2 ways for the resident debtor. Those ways can be listed as follows-
- The debtor or home resident has the option to repurchase the home during the auction.
- The California state regulations allow also make way for a repurchase of the sold home from the successful bidder up to a time frame of one year.
There are several other rules and laws that when considered can prove beneficial for a debtor or a lender in different ways. A qualified attorney can certainly be of great help!
Bankruptcy and home mortgage
Under most circumstances, a home can be preserved when filing a bankruptcy. It can be even more so in the case of Chapter 13 bankruptcy. By use of tactical exemptions, one can also prevent home mortgage under Chapter 7 bankruptcy California too. You just need the right advice to safeguard your residence from foreclosure. It isn’t far away either. Dial 888-297-6203.