Can I Stop a Foreclosure Sale in California?
If you are a California homeowner currently facing foreclosure, take action to stop the sale. The foreclosure process typically takes 120 days. You can utilize various forms of assistance to reinstate your loan and bring the balance current. If your foreclosure sale date is approaching, stay calm and begin seeking help immediately.
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Housing Counselors
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Foreclosure prevention counselors approved by the U.S. Department of Housing and Urban Development (HUD) can review your loan details. You will need to provide financial information, including your income and monthly expenses. Based on the information you supply, the counselor will determine the best way to stop the sale and prevent foreclosure. For some homeowners, it is merely a matter of budgeting better. Other homeowners benefit from selling the property in a short sale or transferring ownership through a deed in lieu of foreclosure. Communicating with your lender is essential to preventing the sale. If you need help, a counselor can also advocate with the lender on your behalf. Locate a California counselor through HUD or the local housing authority.
Making Home Affordable Program
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The Making Home Affordable Program was implemented by President Obama in 2009. This program allows homeowners facing foreclosure the option of modifying the existing loan. By adjusting one or more terms, such as the interest rate or length of the loan, the mortgage can be reinstated. As long as the homeowner is able to afford the payment each month, foreclosure can be prevented. Contact your California lender's loss and mitigation department to discuss a loan modification.
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Keep Your Home California
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The California Housing Finance Agency introduced the Keep Your Home California plan in 2010. Low and moderate income homeowners can receive assistance to stop the foreclosure. The plan features a variety of programs designed to aid homeowners. The Unemployment Mortgage Assistance Program (UMA) helps homeowners who experience an involuntary job loss. Funds are awarded for up to six months to cover the mortgage payment while you seek employment. Through the Mortgage Reinstatement Assistance Program (MRAP), California homeowners can receive up to $15,000 to reinstate the loan if they suffered a financial or medical hardship. For more information or to apply, call 888-954-KEEP.
Right to Redeem
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A foreclosure sale does not necessarily mean the home is gone. California Civil Code Sec. 2924 requires the lender to allow you to pay the delinquent balance within a certain time period before the sale occurs. For a non-judicial foreclosure, you have five days before the sale occurs. In a judicial foreclosure, you have up to a year from the sale date to pay the entire loan balance plus any associated fees.
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