How to Delay Foreclosure, Short-Term Legal Tactics

Attempting to delay a foreclosure doesn’t mean you delay taking action. You must act with urgency in order to get the most from each of these maneuvers. The following list presents short-term solutions in anticipation of finding a permanent or more long-term result.

1. Call your Lender: You should contact your lender as soon as you realize that you will have challenges in paying your mortgage. A lender will be able to discuss all available options to prevent foreclosure and it will also relieve some of the pressure for them to aggressively push the foreclosure proceedings forward.
2. Pursue a Forbearance: A forbearance will allow you to postpone payments and catch up on back payments by paying down what’s owed over several months. This could give you time to attempt to sell your home or explore other options.
3. Negotiate a Loan Modification: You may be able to convince the bank to modify the terms of your home loan if you can demonstrate that you have the ability to make a lower monthly payment. The bank can add your missed payments to your balance, lower your interest rate, extend the term (amount of time given to repay the entire loan) of the loan, or possibly forgive a portion of the amount owed.
4. Challenge the Lender in Court: Since California is a non-judicial foreclosure state, meaning that foreclosure occurs outside of the courts, in order to delay a foreclosure via the legal system you will have to file a suit against your lender. It is recommended that you consult an attorney if you want to explore this option. One thing to start considering is that California state regulations governing foreclosures are very specific. If a bank or lender fails to follow these rules and associated timelines, it might be possible to bring suit against your lender, and it could compel the court to give you more time. It is recommended that you review California's foreclosure laws and Federal real estate, housing and finance laws to reveal any abuse by your lender.
5. Bankruptcy: Filing for bankruptcy will grant you a stay, which essentially freezes all bills due including your mortgage. This requires that you hire an attorney and can be costly, and is not always a long-term solution as advertised by many less-than-ethical attorneys. If bankruptcy does seem to be the right solution for you, and you are married with a spouse as co-owner of the property, consider filing bankruptcy individually with you first and your spouse later, stretching out the period of time that a stay is effective.

Understanding the Foreclosure Process in California

The foreclosure process in California is outlined below. It is important to be familiar with the process to help to determine your course of action. You can then avoid surprises and plan effectively.

Foreclosure generally takes anywhere from three months to one year depending on various factors and follows this typical course:

1. Pre-foreclosure: Late payment notices arrive in the mail and the lender/bank attempts to contact the homeowner by phone.
2. Foreclosure Notice: The lender produces an official foreclosure notice which can be published in a local newspaper and posted at or near the home.
3. Reinstatement Period: The time period before the auction or sale where a homeowner is able catch up on missed payments and any accrued penalties or fees.
4. Sale or Auction: The home is sold at auction to an investor or the lender assumes ownership.
5. Redemption Period: (Not available in all states) A final opportunity for a homeowner to buy back their property after the auction or sale by paying what the home sold for plus interest and any qualified expenses.
6. Eviction: The homeowner must move out. If the homeowner refuses, a local authority forcibly removes the residents and their belongings from the property.

Once a homeowner understands the process, choosing the right option to avoid foreclosure becomes easier. You can determine whether it is something that you can do on your own or whether you need help from a foreclosure attorney.