If you choose to fight in the court system, you can continue to stay in your home, payment-free. By challenging a bank’s action and waiting to file the associated paperwork, you can remain in your home without paying a dime.
During a foreclosure review in the court, the homeowner can remain in his or her home and not make payments. If a bank does not allow a borrower to modify his or her mortgage, sometimes the only recourse a homeowner has is to find a problem with the current paperwork and take the matter to court.
How Long Can I Stay In My House Payment Free?
Usually, you can stay in your home until the foreclosure sale is concluded. Foreclosure is not a short process and entails a number of steps. In fact, if you decide to fight the matter in court, you can stay in your house until the matter is resolved and not make a single payment during that time.
However, that does not mean you will not have to pay attorney and courts costs after all is said and done. Nevertheless, as long as you are involved in the foreclosure process, you can stay inside your house
When You Miss Your First Payment
When you miss the first payment that is your indicator to do something about the situation now and not later. Many people do not act immediately after they have missed a payment. This is where they get into trouble.
When you fall behind with your first payment, contact the lender immediately. Tell him or her why you are behind and plan a workout arrangement without delay. By taking this stance, you will stay on a good rapport with you lender and maintain a more positive cash flow overall.
Before The Foreclosure Starts What Should I Expect?
Expect to receive a Notice of Default first – generally after you have missed your payment after 120 days in California. After this time, you will receive a Notice of Sale. Before you receive the sale notice, you need to contact your lender and an attorney to find out what you can do to save your home or sell it without going through the process.
After You Receive A Formal Notice
The formal notice or Notice of Default gives you 90 days to act and respond to your delinquency. You do not want to procrastinate. Face the problem head on and see what options are available. Take an affirmative stance to ensure that you can either keep your house or make arrangements to sell it yourself. Usually, the servicer cannot give notice until you are delinquent 120 days.
The Redemption Period
The redemption period is a period where the homeowner in a foreclosure can redeem the mortgage and keep his home by paying a sum of money in a specific time period. All homeowners have the right to pay off the mortgage balance, plus the associated fees and costs, before a foreclosure sale takes place. Mortgages can also be redeemed by refinancing the debt or selling the home.
While you do not have the right to redeem a property in California after a non-judicial foreclosure, you do have the right after a judicial foreclosure. However, redemption is not possible if a deficiency judgment is not allowed or waived. The redemption period is three months after the auction sale if the foreclosure price is equal or more than the outstanding debt, including interest and expenses. Otherwise, the period is one year after the auction or foreclosure sale takes place.
After You Get A Notice To Leave
Once your right to stay in your foreclosed home ends, you need to vacate it. Eviction, in this case, is part of the foreclosure process. A notice, called a Notice to Quit, gives the homeowner a certain about of time to vacate. Leave the house immediately after foreclosure or before a formal eviction begins.
