In the state of California, many foreclosures occur when you fail to repay loans to your lenders on time.
Whether you are struggling to balance your budget or you missed notices, you can take steps to avoid losing your home.
Rules and guidelines
According to the California Courts, most foreclosures occur nonjudicially, meaning that you do not settle any legal issues regarding bankruptcy in a court. Instead, the party that lends the money may force the borrower to sell his or her house through a Notice of Sale.
The lender personally alerts the borrower 30 days before the official legal start of the bankruptcy process. In order to prevent confusion, you should immediately open and respond to any warnings from your lender. Not opening your mail is not an excuse that can prevent further legal action against you.
Contacting your lender for a meeting within 14 days, along with arranging for an advisor or other professional to help argue your case, will help bolster your argument.
However, in cases where a deal is not reached within the time limit, you may receive a Notice of Default. Since this notice is public, anyone can see it and potentially try to scam you by sending out fake noticies. Any for-profit agency offering you a document that promises to take away your debt completely may be a scam.
If 90 days pass after you receive the Notice of Default without any additional payments or contact, you will then receive a Notice of Sale. This indicates the trustee will put your house up for bid at a public auction within 21 days. Taking steps and keeping communication lines open can help prevent your home from getting sold at an auction.