Please remember to:

Consult with a Real Estate Broker for real estate advice.

Consult with an Attorney for legal advice.

Consult with a CPA for tax advice.

The first missed payment is a technical default, but most Beneficiaries

begin the recorded process on third missed payment. 

A Lender-Workout is usually conducted prior to the start of the

recorded default process through a Forbearance or other Loss Mitigation.

The Beneficiary instructs the Trustee to begin the Foreclosure proceedings.

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Day 1

A recorded Notice of Default is filed 

Within 10 business days

The Notice of Default is published and a copy mailed to you

With 10 days from the 1st publication

The Beneficiary requests from the Trustee for property directions 

to inspected the property from the outside 

After 3 months

The Beneficiary sets a Sale Date

25 days before the Date of Sale

The Beneficiary sends a copy of the Notice of Sale to I.R.S. 

14 days before the Date of Sale

The Beneficiary records the Notice of Sale

5 business days before the Date of  Sale

The right to re-instate loan is prevented

Sale Date

The property is sold to highest bidder 

 Lender Workout 

The lender will probably not be inclined
to stop foreclosure proceedings if the NOD has been recorded. 

Once the NOD has been recorded the only way to re-instate the loan is to pay the amount due, shown on the NOD.  

Ask your Lender:

Can you make up the default amount over a period of months?

Can you re-write the note and include the default amount?

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The lender will want to know, why your in default

and if your financial situation has been cured.

Because the lender does not want to start

the foreclosure process a second time.

Refinance

Lenders will generally require a
Loan to Value of 65% of the current market value.  

Also expect to pay much higher interest rates and loan fees. 

While loans from family and friends are usually
less expensive and are enough to get the loan current,
make sure you can pay them back on time
and that you don´t have to ask for more money.

¨         Know your FICO score before talking to a lender

¨         Interest rates are generally based on the FICO scores 

¨         Loan fees are generally higher once the NOD is recorded

Bankruptcy

A new law passed,
and a homeowner can no longer stop a forced sale 
by filing bankruptcy.

Also if you file bankruptcy your financial matters
fall under the jurisdiction of the courts,
which could limit your options.  

If you sell your property during bankruptcy
the court reviews all documents
and they control all distribution
of your home's proceeds. 

Aditionally Bankruptcy will have a lasting effect on our credit. 

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If you´re thinking of Bankruptcy

seek an attorney who specializes in bankruptcy 

If unfortunately the only option you have is to sell,

then you only have 90 days from the NOD

to sell and close escrow on your home.

So the sooner your home is Listed for Sale

the greater chance you have in selling it.