Re: Newbie Here - Foreclosure Stage

Hi Ritch,

I am not a realtor, but I work with a group that specializes in helping people in foreclosure. Please feal free to call me at 714-271-8056 or email me at PeterMSanchez@gmail.com. The following should give you your options and some links for additional information.

The Foreclosure Process:

Step 1 – Missed Payments for Minimum of 3 months before starting the legal process of foreclosure.

Step 2 - Notice of Default (NOD) recorded. Then you will have a minimum of 90 Days before the Notice of Trustee Sale can be filed.

Step 3 - Notice of Trustee Sale recorded. This gives the homeowner the required 21-day minimum notice that the house will be sold at Auction.

Step 4 – House sold at Auction to the highest bidder or the lender takes ownership of the property. Homeowner has to vacate the property.

Your Options Are:

1. Reinstate loan - Requires you to pay all the missed payments and fees.
2. Forbearance Agreement - Work out a payment plan with the lender.
3. Loan Modification
4. Deed In Lieu of Foreclosure
5. Cash for Keys Foreclosure (Can’t buy for 5-7 yrs)
6. Sell Your Home/Short Sale (Can buy in 1-2 yrs)

Information for you to look up:

• SB1137 (Senate Bill) – Mortgage lenders need to follow certain procedures before issuing a Notice of Default (NOD)
• www.makinghomeaffordable.gov
• Tax Questions: Ask your Tax Professional about these forms:
o 1099A
o 1099C
o Form 982
o Insolvency Act
• Foreclosure – 1099A = M9 Credit Rating
• Short Sale - 1099C = Settlement Of Debt
.
Hope this helps,
--Mike