How to Expedite Foreclosure in California
If the writing's on the wall and you know you're going to lose your home, you may consider foreclosure if you've exhausted all other avenues. Because most foreclosures in California are nonjudicial — meaning they don't involve the courts — the speed of the process is largely dictated by your lender. Judicial foreclosures, which are rare in California, require your lender to sue you for surrender of your home in a court of law.
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Instructions
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Default on your loan. Stop making mortgage payments completely and contact your bank to say you're not in a position to make any contributions to your loan. Request that your lender begin the foreclosure process immediately, or as quickly as the foreclosure process it has in place allows. It's unlikely your lender will set the ball in motion before you're at least three months behind with your payments, but this varies by institution.
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Respond to your notice of default from the lender in writing. California Civil Code Section 2924 stipulates that your notice of default must state the amount you owe and how much you would need to pay to reinstate your loan. Stress to your bank and the trustee of your mortgage that you're not able to meet the requirements to reinstate the loan and that you would like the foreclosure procedure to proceed as swiftly as possible. Your request to speed the process along may have little effect, but it might persuade your lender to abandon any forbearance —holding off taking any action to recover your property.
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Move out of your home, leaving it in good decorative order, as soon as you can. Making sure your home is left in a satisfactory condition increases the likelihood of it selling at auction, which in turn gets you nearer to the end of the foreclosure process. Return the keys to the mortgage trustee. This allows your lender to prepare your property for auction.
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Tips & Warnings
A foreclosure stays in your credit file for seven years and seriously affects your ability to apply for financial products.
Avoid foreclosure if possible. Discuss establishing a payment plan with your lender or contact a nonprofit housing counseling agency for advice.
References
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