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How to Avoid Foreclosure in California

According to a recent report from CoreLogic, a company that tracks Real Estate conditions nationwide, California is one of the most at-risk states when it comes to Foreclosure. If you are a resident of California and are struggling with the burden of a high mortgage payment, here are some of the steps that you should consider to increase your chances of avoiding foreclosure and keeping your property.

Confront The Situation – Never avoid any letters from your lender. Many struggling homeowners bury their head in the sand and simply ignore correspondence from their lender, this will not lead to a foreclosure resolution.  The non-judicial foreclosure process in California, Nevada, Utah and many other states is actually designed so that if homeowners do nothing, their home will be sold expeditiously by a foreclosure trustee.  In order to have a chance at some resolution, you must be willing to address the problem openly.

Ask for Help – Many homeowners mistakenly believe that they have to deal with foreclosure problems on their own.  This is simply not true.  There are many well qualified and helpful foreclosure and real estate attorneys that can help you avoid foreclosure in many cases, or at the very least make you aware of all your legal rights.

Consider All Costs – Owning a piece of real property comes with many number of costs, even besides the mortgage payment.  These unexpected costs can often push a family into foreclosure, even if the mortgage payment may have been affordable.  Some of these costs include property taxes, insurance, home owners association dues, maintenance and repairs.

Keep Your Home California

Avoiding home foreclosure in California has recently been made easier due to new State and Federal programs.  These programs are designed specifically to help homeowners avoid foreclosure.

The California Housing Finance Agency recently started a program called, “Keep Your Home California.” This is a $2 billion federal program designed to help home owners in California afford their mortgages. “Keep Your Home California” was created to help lower income families who have had a hardship such as a loss of job, death in the family, or other economic disruption in their lives. ”Keep Your Home California” has four different types of programs available:

Unemployment Mortgage Assistance Program (UMA) – These short-term funds are available to homeowners who have lost their job. This program helps with mortgage payments for 6 months, and up to $3,000.

Mortgage Reinstatement Assistance Program (MRAP) – This program helps families that can’t pay their mortgage due to a temporary change in household circumstances.  A “change in circumstance” is a fairly broad term, and it is uncertain what specific criteria will be used.

Principal Reduction Program (PRP) – This program provides capital to reduce outstanding principal balances of qualifying borrowers with negative equity.

Transition Assistance Program (TAP) – This program helps families move when they can no longer afford their homes.

Take Action Today!

At McFarlin LLP, we understand that the thought of losing your home is unsettling. It is easy to feel helpless in times like these, but the right lawyer can help by explaining your options and legal rights.  Also, homeowners should be aware that there are many home foreclosure scams out there. Never sign a legal document (such as a “quitclaim deed”) without consulting a foreclosure attorney. If you are facing foreclosure, we can help contact McFarlin LLP at 1-888-728-0044 for a free consultation.