How to Stop a Foreclosure Eviction in California
If your California home is in foreclosure, you have options. You do not have to leave your home. In fact, you should not leave your home. Seek assistance through the federal government and state of California to stop a foreclosure eviction.
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Negotiate with your lender. California lenders often are willing to work with homeowners who express a desire to avoid foreclosure. Inquire about a temporary payment suspension, known as a forbearance. You can also consider refinancing at a lower interest rate. The federal Making Home Affordable program can allow homeowners to modify their loans to reduce the monthly payment. If saving the home is not an option, ask about alternatives to foreclosure such as a short sale or deed in lieu. If your lender participates in the Home Affordable Foreclosure Alternative program, you may qualify to receive relocation funds of up to $3,000.
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Apply for assistance through the California Housing Finance Agency. CalHFA offers several programs to help homeowners stop foreclosure. The Unemployment Mortgage Assistance Program provides monthly mortgage assistance to homeowners who experience an involuntary job loss. The Mortgage Reinstatement Program offers households up to $15,000 toward the delinquent balance.
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Seek legal assistance. In California, many pro bono attorneys offer their services to help homeowners facing foreclosure. Service ranges from legal advice to court representation. To locate a legal service agency near you, visit HUD.
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Attend mediation. California homeowners can exercise their right to mediation. Mediation is when you meet with your lender and an unaffiliated third party to reach a solution. Mediation is an attempt to resolve the foreclosure without going to court.
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File bankruptcy. Once you file Chapter 7 or Chapter 13 bankruptcy, an automatic stay is issued. Creditors, including your lender, are required to cease collection activity until the bankruptcy is finalized. If you wish to keep your home, consider Chapter 13 bankruptcy. As long as you continue making your current mortgage payment and past-due balance in monthly increments, you can keep your home. Carefully consider all options before filing bankruptcy. If you choose to file bankruptcy, it will remain on your credit for at least seven years.
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