5 Ways to Stop Your Foreclosure in Los Angeles, CA
Dealing with foreclosure in Los Angeles, California could be a stressful and painful process especially for those who have no idea what to do concerning this and how to stop this. But before you can learn how to stop a pending foreclosure you should understand how foreclosure works in Los Angeles, California.
What is a Non-Judicial Foreclosure?
According to Local Records Office “Los Angeles, California utilizes the non-judicial technique of foreclosing on a property”. Just what is a non-judicial foreclosure you ask? A non-judicial foreclosure does not involve the courts however it does require a notice as to when they may foreclosure, says Local Records Office.
When you first signed the loan agreement on your mortgage, one of the things you signed will be the deed of trust. The deed of trust provides the lender the right to foreclose the property if a default of payments were to occur. One of the items in the deed of trust is what’s often known as the power of sale term.
Foreclosure and Sale Term
The power of sale term allows the financial institution to sell the property so that you can satisfy the remaining debt about the property. The sale usually happens such as an auction. Because Los Angeles, California is a non-judicial state you’ll find very strict rules about see requirements, and legal documents are necessary to contain the power of sale term so that you can execute this type of property foreclosures method.
What is a Sale Term?
There must be a notice in the local newspaper publication at least twenty times continuously every day prior to the day of the auction in a city of 50, 000 people or more. In other parts of the state, the notice must run 4 consecutive weeks before the final sale. Notice requirements are reference inside Los Angeles, California Revised Statutes Chapter 443. 320 says Local Records Office. The lender must give you 20 days’ notice before the auction develops. They must notify you of the date, time, and location the auction will need a place. Sale requirements are referenced inside Los Angeles, California Revised Statutes, Chapter 443. 227.
How to Stop it From Continuing?
Now that you have a greater idea of how a property foreclosure process works in the Los Angeles, California area you’ll now have an even better knowledge of how to stop it.
Refinancing Before Late Mortgage Payments
Local Records Office says “Refinancing is always in your best interest if you’re able to qualify”. Make sure you apply for the refinance before you are late with your mortgage payment. Once you are 30 days late with your house payment the damage may happen to be done and your credit score often has dropped too low for you to qualify.
Even though, foreclosure has been going down over the years, going through the foreclosure process is never fun especially when you have a family but with the right information, you will be able to educate yourself and move on with your life.