• About
  • Buy Bankruptcy Adversary Package
  • Buy Foreclosure Defense Package
  • Contact Us
  • Donation
  • FAQ
  • Services

FightForeclosure.net

~ Your "Pro Se" Foreclosure Fight Solution!

FightForeclosure.net

Tag Archives: Deed in lieu of foreclosure

What Are the Options for Homeowners During Foreclosure

07 Sunday Apr 2019

Posted by BNG in Affirmative Defenses, Banks and Lenders, Foreclosure, Foreclosure Crisis, Judicial States, Mortgage Laws, Non-Judicial States, Note - Deed of Trust - Mortgage, Your Legal Rights

≈ Leave a comment

Tags

avoid foreclosure, Consequences of a Foreclosure, Deed in lieu of foreclosure, homeowners, housing counselor, Judicial, judicial foreclosures, mortgage, mortgage company, Non-judicial, nonjudicial foreclosures, Options, Process for a Foreclosure

When faced with foreclosure, it’s important to know your options and understand all the potential solutions that may be available to help you avoid foreclosure. It’s also important to understand what can happen if you fail to take action and foreclosure becomes unavoidable. The process can be stressful, embarrassing, and it can have long-lasting consequences.

“What happens if my home is foreclosed on?”

Walking away from your home voluntarily, may seem like the best solution when your home is valued lower than what you owe. However, this action may lead to financial consequences in the future. In some states, you may be required to pay a portion of your mortgage debt even after the home has entered foreclosure. Also, the impact to your credit may make it difficult to rent or purchase a home in the future. It may be best to explore other options to foreclosure with your mortgage company before making a decision to leave your home.

Keep in mind, your mortgage company doesn’t want to foreclose on your home. Just like there are consequences for you, the foreclosure process is time-consuming and expensive for them. They want to work with you to resolve the situation. However, some homeowners simply don’t take advantage of the help available and foreclosure becomes the only option.

For example, foreclosure could result in you:

  • owing the mortgage company the deficiency balance of your mortgage (the deficiency balance is the remaining total mortgage balance after the sale price of the home)
  • lengthening the time you could receive a Fannie Mae mortgage to purchase your next home to at least 7 years

What is a Foreclosure?

A foreclosure is the legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan.

A foreclosure can usually be avoided—even if you already received a foreclosure notice. See the chart (in “Foreclosure Comparison”) to compare some other options: Short Sale and Mortgage Release (Deed-in-Lieu of Foreclosure). No matter the option, you must take action as soon as you can.

What are the consequences of a Foreclosure?

  • Eviction from your home—you’ll lose your home and any equity that you may have established
  • Stress and uncertainty of not knowing exactly when you will have to leave your home
  • Damage to your credit—impacting your ability to get new housing, credit, and maybe even potential employment, for many years
  • May owe a deficiency balance after the foreclosure sale
  • Lose any relocation assistance or leasing opportunities that may be available with other options
  • Forfeit ability to get a Fannie Mae mortgage to purchase another home for at least 7 years (Fannie Mae guidelines)

What is the process for a Foreclosure?

There are two main types of foreclosure:

  • Judicial – supervised by a court with formal legal proceedings (civil law suit)
  • Non-judicial – non-court supervised

In both types of foreclosure, the homeowner receives the legal notice of foreclosure, the legal notice is published in the local paper (in most cases), and the home is sold at public auction. (For judicial foreclosures, you’ll be served with legal notice of the pending action, and the court will approve or set the foreclosure date and sale.)

The process and timing of a foreclosure can vary by state laws, and many other factors. However, your mortgage company can begin preparing the default notice/foreclosure proceedings on your home as early as 60 days after you have missed your first payment. That’s why you should take action early to begin working with your mortgage company to resolve your payment problems immediately.

How Do You Avoid Foreclosure?
The most important thing—take action now. You have nothing to lose (and everything to gain) by working with your mortgage company to avoid foreclosure.

If foreclosure is imminent, other options may no longer be available. However, you may still be able to leave your home without having to go through foreclosure. This means you won’t have a foreclosure on your credit history and you may qualify for relocation assistance to ease your transition to new housing.

Next steps

  1. Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:
  • your mortgage statements, including information on a second mortgage (if applicable)
  • your other monthly debt payments (e.g., car or student loans, credit card payments), and
  • your income details (pay stubs and income tax returns).

2. Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, why this is a long-term problem and confirm that you are ready to leave your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.

Contact Your Mortgage Company — Tell them you are interested in a Mortgage Release and you want to see if you qualify.

Your mortgage company wants to help you avoid foreclosure and, in most cases, will be willing to work with you. The biggest mistake you can make is to wait any longer to take action. Contact your mortgage company today to determine if you can avoid foreclosure. If you need further assistance (before or after contacting your mortgage company), contact a housing counselor.

How is home ownership transferred?


When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

If you have received a Notice of Default “NOD”, take a deep breath, as this the time to start the FIGHT! and Protect your EQUITY!

If you do Nothing, you will see the WRONG parties WITHOUT standing STEAL your home right under your nose, and by the time you realize it, it might be too late! If your property has been foreclosed, use the available options on our package to reverse already foreclosed home and reclaim your most prized possession! You can do it by yourself! START Today — STOP Foreclosure Tomorrow!

If you are a homeowner already in Chapter 13 Bankruptcy and needs to proceed with Adversary Proceeding to challenge the validity of Security Interest or Lien on your home, Our Adversary Proceeding package may be just what you need.

Advertisement

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

How Home Buyers Can Avoid Traps In Foreclosed Homes

07 Sunday Apr 2019

Posted by BNG in Foreclosure, Foreclosure Crisis, Foreclosure Defense

≈ Leave a comment

Tags

after foreclosure, avoid foreclosure, buying foreclosed homes, Deed in lieu of foreclosure, foreclose, foreclosed homes, Foreclosure, foreclosure auction, Foreclosure Crisis

While foreclosure activity is dropping in most major cities, there are some metropolises where foreclosed properties still account for too large of a percentage of homes on the market.

Here’s the question for home buyers: Do high-foreclosure markets actually represent an opportunity? Do these cities give buyers a chance to get into city neighborhoods that they otherwise might not be able to afford?

Yes, they do. But buyers have to be careful: Purchasing a home that is in foreclosure can lead to big problems.

Home buyers who want a good deal in real estate invariably think first about buying a foreclosure. They think, sure, I’ll do a little work to get a cheap price. They believe banks are desperate to dump these awful homes, and that’s not true, either.

Some well-meaning buyers have this picture in their mind of a cute little house, surrounded by a white picket fence that is owned by a widowed mom who fell on hard times, but that scenario is generally far from reality. The real picture is often ugly.

The homeowner either abandoned the home or voluntarily deeded the home to the bank. You will hear the term the bank taking the property back, but the bank never owned the property in the first place, so the bank can’t take back something the bank did not own. The bank foreclosed on the mortgage or trust deed and seized the home. There is a difference.

A foreclosure is a home that belongs to the bank, which once belonged to a homeowner.

Sellers stop making payments for a host of reasons. Few choose to go into foreclosure voluntarily. It’s often an unpredictable result from one of the following:

  • Laid-off, fired, or quit job
  • Inability to continue working due to medical conditions
  • Excessive debt and mounting bill obligations
  • Squabbles with co-owner, divorce
  • Job transfer to another state
  • Maintenance issues they can longer afford

During the market crash from 2005 through 2011, many homeowners simply walked away from their homes because the values had fallen and they owed more than their homes were worth. This was not the best solution, in most cases, but it was immediate relief for homeowners.

Negotiating Directly With Sellers in Foreclosure

Investors who specialize in buying foreclosures often prefer to purchase these homes before the foreclosure proceedings are final. Before approaching a seller in distress, consider:

  1. Foreclosure proceedings vary from state to state. In states where mortgages are used, homeowners can end up staying in the property for almost a year; whereas, in states where trust deeds are used, a seller has less than four months before the trustee’s sale.
  2. Almost every state provides for some period of redemption. This means the seller has an irrevocable right during a certain length of time to cure the default, including paying all foreclosure costs, back interest and missed principal payments, to regain control of the property. For more information, consult a real estate lawyer.
  3. Many states also require that buyers give to sellers certain disclosures regarding equity purchases. Failure to provide those notices and to prepare offers on the required paperwork can result in fines, lawsuits or even revocation of sale.
  4. Determine whether you’re the type of person who can easily take advantage of a seller’s misfortune under these circumstances and/or put a family out on the street. Oh, critics will argue it’s just business and sellers deserve what they get, even if it’s five cents on the dollar. Others will feign compassion and trick themselves into believing they are “helping” the homeowners avoid further embarrassment, but deep inside yourself, you know that’s not true.

Buying a Home at the Trustee’s Sale

Check with your local county office to find out how sales in your area are handled, but common denominators among those are:

No loan contingency
Sealed bids
Proof of financial qualifications
Sizable earnest money deposits
Purchase property “as is”

Sometimes buyers are not allowed to inspect the house before making an offer.

WARNING: The problem with buying a house sight unseen is you can’t calculate how much it will cost to improve the structure or bring it up to habitable standards. Nor do you know if the occupant will retaliate and destroy the interior.

On top of that, you may need to evict the tenant or owner from the premises after you receive the title, and eviction processes can be costly.

Another drawback could be liens recorded against the property that will become your problem after title transfer. Some investors who buy at trustee sales pay for a title search in advance to avoid this problem. These guys who show up to bid on the courthouse steps are professionals, and they buy foreclosures at auction as a business. They hope to buy the foreclosure at a low price to make a nice profit when they later flip the home. You do not need to hire a real estate agent to buy a foreclosure at the auction, but you do need to know what you are doing to compete with the pros.

Buying a Foreclosure From the Bank

Many banks do not sell homes directly to investors or home buyers. If a bank is willing to sell homes individually and not in bulk sales, the bank will generally list the home through a real estate agent. There are REO agents who specialize in foreclosure listings.
It is more common to buy a foreclosure directly from the bank in a bulk sale purchase. In bulk sales, the banks will package a bunch of properties into one transaction and sell them all at once to one entity. That is the best way to buy a foreclosure if you can afford it because the discounts are typically the steepest.

Foreclosure Traps to Avoid

You’ll find the lowest prices for foreclosed homes by buying them at auction. But the auction process is also the riskiest way to buy foreclosures. That’s because you won’t have the chance to inspect a foreclosed home beforehand.
Once you get your “bargain” home, you might find that it needs costly repairs that can quickly eat up the savings you thought you’d enjoy. A foreclosed home purchased through auction might also have liens filed against it, such as liens for outstanding tax payments. You might be on the hook for those unpaid taxes, and need to reach a settlement with the IRS.
The best news for buyers is that banks are required to pay off any liens filed against these properties. Buyers can also hire home inspectors to tour the homes before they buy them. These inspectors can help buyers determine how much they’ll need to spend in repairs. Buyers can then calculate whether a particular foreclosure is a bargain or a potential money pit.

A foreclosed home can present a savvy investment opportunity under the right circumstances. Do your homework, and you might just come away with a diamond in the rough.

——————-

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

If you have received a Notice of Default “NOD”, take a deep breath, as this the time to start the FIGHT! and Protect your EQUITY!

If you do Nothing, you will see the WRONG parties WITHOUT standing STEAL your home right under your nose, and by the time you realize it, it might be too late! If your property has been foreclosed, use the available options on our package to reverse already foreclosed home and reclaim your most prized possession! You can do it by yourself! START Today — STOP Foreclosure Tomorrow!

If you are a homeowner already in Chapter 13 Bankruptcy and needs to proceed with Adversary Proceeding to challenge the validity of Security Interest or Lien on your home, Our Adversary Proceeding package may be just what you need.

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

What Homeowners Must Know About Foreclosure

12 Wednesday Sep 2018

Posted by BNG in Banks and Lenders, Credit, Federal Court, Foreclosure Crisis, Foreclosure Defense, Judicial States, Mortgage Laws, Non-Judicial States, Note - Deed of Trust - Mortgage, Pro Se Litigation, Real Estate Liens, State Court, Your Legal Rights

≈ Leave a comment

Tags

adjustable rate mortgage loan, Adjustable-rate mortgage, avoid foreclosure, bank forecloses, Deed in lieu of foreclosure, Foreclosure, Foreclosure Crisis, foreclosure defense, foreclosure suit, foreclosures, homeowners, Loan, Loan servicing, mortgage, Mortgage loan, Mortgage modification, non-judicial foreclosure, Pro se legal representation in the United States, Promissory note, Real estate, Real Estate Settlement Procedures Act, RESPA

Facing a foreclosure can be daunting prospect for people in trouble with their mortgages, especially when they are unsure of what to do. Across the country, six out of 10 homeowners questioned said they wished they understood their mortgage and its terms better.

When the economy collapsed in 2008, foreclosure became a fact of life for millions of Americans.  About 250,000 new families enter into foreclosure every three months, according to the Federal Deposit Insurance Corporation.

The same percentage of homeowners also said they were unaware of what mortgage lenders can do to help them through their financial situation.

The first step to working through a possible foreclosure is to understand what a foreclosure means. When someone buys a property, they typically do not have enough money to pay for the purchase outright. So they take out a mortgage loan, which is a contract for purchase money that will be paid back over time.

A foreclosure consists of a lender trying to reclaim the title of a property that had been sold to someone using a loan. The borrower, usually the homeowner living in the house, is unable or unwilling to continue making mortgage payments. When this happens, the lender that provided the loan to the borrower will move to take back the property.

How do Foreclosures Work?

People enter into foreclosure for various reasons, but it typically follows a major change in their financial circumstances. A foreclosure can be the result of losing a job, medical problems that keep you from working, too many debts or a divorce.

Foreclosures often begin when the borrower stops making payments. When this happens, the loan becomes delinquent and the homeowner goes into default. The default status continues for about 90 days. During this time, the lender will get in touch with the borrower to see whether they will be able to pay the balance of the loan.

At this point, if the borrower cannot pay, the lender may file a Notice of Foreclosure, which begins the process. The lender will file foreclosure documents in a local court. This part of the process usually takes 120 days to nine months to complete. If borrowers need extra time, they can challenge the process in court, and that’s where our Foreclosure Defense Package comes in.

How do Foreclosures Relate to Debt?

Some people facing foreclosure find themselves in this position because of mounting debt that made it harder to make their mortgage payments.

A foreclosure can add to your financial problems if your state allows a deficiency judgment, which means the borrower owes the difference between what is owed on the foreclosed property and the amount it eventually sells for at an auction.

Thirty-eight states allow financial institutions to pursue borrowers for this money.

In cases when a lender does not use a deficiency judgment, a foreclosure can relieve some of your financial burden. Although it is a loss when a lender takes the home you partially paid for, it can be a start to rebuild your finances.

It is a good idea to work with a financial adviser or a debt counselor to understand what kind of debt you may incur during a foreclosure.

What Else Should I Know?

If you are thinking about going into foreclosure, there are a number of things to consider:

  • A foreclosure dramatically affects your credit score. Fair Isaac, the company that created FICO (credit) scores, drops credit scores from 85 points to 160 points after a foreclosure or short sale. The amount of the drop depends on other factors, such as previous credit score.
  •  Get in touch with your lender as soon as you are aware that you are having difficulty making payments. You may be able to avoid foreclosure by negotiating a new repayment plan or refinancing that works better for you.
  •  States have different rules on how foreclosures work. Understand your rights and get a sense of how long you can stay in your home once foreclosure proceedings begin.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/loan

If you have received a Notice of Default “NOD”, take a deep breath, as this the time to start the FIGHT! and Protect your EQUITY!

If you do Nothing, you will see the WRONG parties WITHOUT standing STEAL your home right under your nose, and by the time you realize it, it might be too late! If your property has been foreclosed, use the available options on our package to reverse already foreclosed home and reclaim your most prized possession! You can do it by yourself! START Today — STOP Foreclosure Tomorrow!

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

What Homeowners Must Know About Reinstating their Mortgage Loan

18 Monday Jun 2018

Posted by BNG in Banks and Lenders, Foreclosure Crisis, Foreclosure Defense, Judicial States, Loan Modification, Mortgage mediation, Mortgage Servicing, Non-Judicial States, Pro Se Litigation, Your Legal Rights

≈ Leave a comment

Tags

avoid foreclosure, Deed in lieu of foreclosure, foreclose, foreclosing on home, Foreclosure, Foreclosure Crisis, foreclosure defense, foreclosures, homeowners, mortgage lender, Mortgage loan, mortgage loan modification, mortgage loan modifications, mortgage loans, Mortgage modification, Mortgage servicer, Pro se legal representation in the United States, short sale, United States

Once you fall behind on your mortgage, the amount you’re behind is called the arrears.

In the past, we have discussed how you may have loan modification options available to you that let you stay in your home and resume making mortgage payments without having to pay your arrears all at once.

But sometimes homeowners would rather pay their arrears, get current on their mortgage loan and resume making their regular mortgage payments.

This is called reinstating your loan. Reinstating your loan means you pay the entire amount you’re behind (arrears) plus all related fees (such as interest and late fees) to bring your loan current. After you reinstate, your loan will appear as paid to date in the lender’s records and you will resume making your original mortgage payments.

If you have fallen behind on your mortgage payments and want to reinstate your loan, your first step is to determine whether the lender has initiated the foreclosure process.

Reinstating before the foreclosure process has started

If you’re not in the foreclosure process yet, you want to cure the default on the loan. You need to ask your lender to give you a reinstatement quote. This document can be issued 30 days in advance of your payment date. For example, on May 1 you can order a reinstatement quote good through June 1 so you know how much will be due in 30 days.

If you pay the amount listed on the reinstatement quote, the default will be cured and you can resume making regular mortgage payments. The lender will then be unable to start foreclosure.

Make sure you pay the full amount listed on the reinstatement quote

Simply adding up missed mortgage payments and sending that amount may not be the actual amount due. Based on the terms you signed in your original note, the lender may add late fees for missed payments. If you don’t pull a reinstatement quote and send only what you believe is owed, the lender may deem this a partial payment. They will likely keep the partial payment but refuse to show the loan as fully up to date. This could lead to foreclosure.

Don’t accept any verbal reinstatement payoff amount, whether on the phone or in person. Make the lender give you the quote in writing. Verbal reinstatement amounts may be inaccurate and they may change. They are also impossible to verify later. If you send payment based on a verbal quote, the lender could change their mind and you would have no way to prove what they originally told you.

Reinstating after the foreclosure process has started

If you have fallen behind on your mortgage payments and want to pay your arrears but your loan has entered the foreclosure process, rather than talk to your lender, work with the Trustee. The Trustee is the party who issued your Notice of Trustee’s Sale (NOTS). Their contact information should be listed in the NOTS.

Once a lender starts foreclosure and hires a Trustee, the Trustee is in charge of the foreclosure. They are responsible for documenting and holding all reinstatement amounts and quotes.

Things to know and things you should do:

  • Legal fees paid to the Trustee by the lender may be added to your total reinstatement amount. So, if you decide to reinstate the loan you may see additional legal fees added to the total amount due.
  • Make sure you receive your reinstatement quote directly from the Trustee, not the lender. At this point in the process, to ensure that you’re making a full payment, the Trustee is the only one who has that number.
  • Make the request in writing. Include your name, loan number, and Trustee Sale number found on your NOTS. Write “Please send me a reinstatement quote good through (Date) at (my contact information).”
  • Fax the request to the fax number provided on the NOTS and to your lender. Call the Trustee to make sure they received the fax and continue to follow up until they send you the quote.
  • In the state of Washington, you’re allowed to reinstate your loan up to 11 days before your foreclosure sale date. If you believe reinstatement is the right move for you, make sure you request the quote and gather the funds so you can send payment before that 11-day mark.
  • Ask your Trustee how they would like to receive payment. Most Trustees want a cashier’s check made out to the Trustee but payment processes are different for each Trustee. Have this conversation with them before you make payment.

How does reinstatement affect foreclosure?

If you fully reinstate before the 11-day deadline, the Trustee will cancel the foreclosure of your home and withdraw from the case.

You will resume making monthly mortgage payments outlined in your original loan.

You have to track your foreclosure date to make sure the sale actually is canceled. Get written confirmation from the Trustee that they have canceled the sale.

Are the fees attached to the reinstatement quotes negotiable?

Sometimes. It is important to review all late fees and attorney’s fees attached to the reinstatement quote. Some Trustees and Lenders will take advantage of a reinstatement situation by tacking on fees in excess of work performed. There is little regulation on these fees, so it is important to review the fees carefully.

If you see something that looks excessive, request a full accounting of each fee. The Trustee should be able to provide you a breakdown of how they arrived at the reported fees. Request a breakdown for excessive late fees sent by the lender to make sure they only reflect legal late fees for missed mortgage payments.

Are there any exceptions to the 11-day requirement to reinstate?

If you believe that you may be able to reinstate your loan, but not before the 11-day deadline, reach out to the Trustee and tell them your situation.

If you can prove that you fully intend to reinstate and have the ability to do so, the Trustee or lender may provide you more time in order to reinstate the loan. Reinstatement is generally good for lenders. They want you to pay them back and get current. Many times, lenders agree to postpone foreclosure in order to allow you to reinstate, but you have to demonstrate your ability to reinstate in a persuasive way.

We recommend putting together a package including:

  1. A signed and dated letter stating that you intend to reinstate the loan
    • Include how you plan to come up with the funds
    • Give a date for when you’ll have the funds
    • Ask for a foreclosure postponement of a certain time (e.g. 15 days, 30 days, etc.). Asking for a general, indefinite postponement likely won’t work.
    • Do everything you can to indicate that you are serious about wanting to reinstate
  2. Proof of funding: Demonstrate how you will come up with the funds. For example, if the funds are in a retirement account, send the retirement fund statement showing that the money is there. If you are borrowing the money, have the people you’re borrowing from sign and notarize a letter stating that they will be lending you money. Include the amount borrowed and the source.

Fax the package to the lender and the Trustee. Call to make sure they received the fax. While you’re on the phone, find out who is looking at your request and see if you can email them directly. It is not enough to simply fax the package, you have to push both the lender and the Trustee to pay attention to your request.

Is a partial payment ever acceptable?

It may be an option for you to offer a partial payment of the full reinstatement amount in order to get a postponement that will give you time to gather the full funds. Lenders may agree to take a portion of money in exchange for foreclosure postponement.

Be careful with this option. Unless you are absolutely, 100% certain you will be able to fully reinstate, you shouldn’t send money or you may lose it. Never send money without an agreement in writing that the lender will postpone in exchange for a lump sum received.

Because you’re in default, the lender will keep the money you paid regardless of whether you’re able to fully reinstate. Don’t do this unless you know will be able to come up with the rest of the money.

Modification options instead of reinstatement

If you’re barely making it through the month in your current financial situation, reinstating the loan may not be the best solution for you. If the reasons why you defaulted are still part of your life, it may be better for you to pursue an alternative like a loan modification or a short sale so you can get to a more affordable housing situation.

Some homeowners think reinstatement is the only way to stay in their home. That’s not always true.

Don’t spend thousands of dollars to get current on a loan you may not be able to maintain. Call us to learn about all your options to tailor the best plan to fit your situation.

If you think you want to reinstate, keep it as your last option. After all, you can reinstate all the way up until 11 days before the foreclosure sale. Other options may allow you to stay in your home and avoid having to pay a large lump sum.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

 

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

What California Residents Needs To Know When Faced With Foreclosure Challenges

01 Monday Jul 2013

Posted by BNG in Affirmative Defenses, Appeal, Foreclosure Defense, Judicial States, Non-Judicial States, Your Legal Rights

≈ 1 Comment

Tags

Business, Deed in lieu of foreclosure, Foreclosure, Lien, Mortgage loan, Real estate, Trust deed (real estate), Trustee

What is a foreclosure?
“Foreclosure” is a common term used to describe a trustee’s sale proceeding- the correct terminology to use when describing the procedure for enforcing a lender’s rights once an obligation secured by a Deed Of Trust (or similar instrument) is in default.

What constitutes a breach or a default?
A breach exists when the borrower fails to make the payments of principal and interest when due pursuant to the note secured by deed of trust. If the balance of the note is due, the breach would be the failure to make the principal payment due plus interest, by the maturity date. Most deeds of trust have provisions for default being declared when a senior lien, insurance, taxes and assessments have not been paid, or if the property is transferred without the lenders approval.

Should I forego a foreclosure and take a deed in lieu?
Before you can even consider an alternative, the borrower must be willing to offer a deed in lieu. There are advantages to taking a deed in lieu. It could save you time and money. You should order a preliminary title report and review it carefully to determine if there are any junior liens that would survive the deed in lieu. If you are satisfied with the title report, you would take the deed in lieu subject to a title insurance policy being issued in your favor as reflected in the preliminary report. This procedure would take a lot less time than the approximate four months of foreclosure. The main disadvantages to taking a deed in lieu of foreclosure are the junior liens will not be extinguished and that the borrower may later have a change of heart and seek to have the courts set the deed in lieu aside.

Must the original trustee process a non-judicial foreclosure?
No. The beneficiary may substitute trustees anytime.

Should I notify a senior lender of the existence of my junior lien? Yes. A senior lender may have a provision in his deed of trust that provides for senior priority for additional advances to the borrower. When advances are “obligatory” to protect the lender’s security interest, they are so secured. However, if the advances are “optional” and the senior lender has knowledge of a junior lien, the advances may not be senior to the junior lien of trust. A junior lender, therefore, should give the senior lender notice of their lien. Many lenders would like to reduce their collection efforts by having the junior lienholder advance to their loan. Send the senior lender a notice which tells them that you are willing to reinstate their loan.

Must I give notice of delinquency to a junior lienholder even if I don’t file an NOD?
No. Junior lienholders may request status of senior lien by doing the following:
Under the California civil code section 2924e, a lender is required to send a notice to a junior lienholder within 15 days after the delinquency reaches four months, when certain conditions exist: the borrower must consent; the junior lienholder must submit the request in writing by certified mail along with $40; the property must contain one to four residential units; the request shall be recorded in the county in which the property is situated; and it has not been longer than five years since the original request, unless a renewal payment of $15 has been made.
Junior lenders who acquire interest by assignment, now have the same rights as the original beneficiary to require senior lenders to provide information regarding delinquencies of four months. The new junior beneficiary must pay a processing fee of $15 to the senior beneficiary. See section 2924e(b).

If my loan is in a senior position, when should I start my foreclosure?
You may have to consider various constraints before you can file a notice of default. Is this a standard Fannie Mae/Freddie Mac document? If it is, you must send the borrower a notice of intent to foreclose 30 days prior to the filing of the NOD. You may have sold the loan to some other lender; they may have certain procedures and standards that you must adhere to, such as asking their permission to foreclose after a suitable effort has been made to work with the borrower to encourage repayment. If your loan is insured, you have be required to follow certain steps in order to be allowed to file a claim with the insurer.
The most important consideration when deciding to start a foreclosure is “Am I well secured if I wait?” If there is adequate protection between the value of your loan and the value of the property, delay should cause no loss. If there is inadequate protection, then every day delayed will cost you money. Choose a trustee who will record your NOD without any unnecessary delays and will stand behind their work.

If my loan is in a junior position, when should I start my foreclosure?
If you service a loan for someone else, if it is insured, or it is a standard FNMA/FHLMC document, then you have the same constraints mentioned in the previous question. Being in junior position adds one other very important dimension for your consideration. The senior lender can foreclose you out of your security or certainly diminish your protection as their loan interest balance grows.
If the senior lender begins foreclosure, and neither you nor the borrower bring them current, the lender could very well go to sale and eliminate your security. It is much better for you to initiate foreclosure early, go to auction, acquire the property and sell it, before the senior lender can complete the foreclosure. Of course, if necessary, you may have to reinstate the first lender to allow enough time for you to complete your foreclosure.

Should I reinstate the senior loan which is in foreclosure, or bid at its sale?
Reinstating the senior loan should require considerably less cash than bidding at its sale. If the loan has matured, then you may pay off the loan prior to the sale or bid at the sale.

If the senior lender filed a notice of default several months earlier, you may be able to save time by bidding at the senior’s sale. However there are some pitfalls to this strategy. The senior may delay his foreclosure; you have no control over when they may go to sale. File your own notice of default as soon as possible so that at least you are proceeding to your own sale. If you intend to bid at the senior’s sale, come to the sale early, bring sufficient certified funds to bid the amount of the debt plus your lien. You cannot credit bid the amount owed to you under your deed of trust; your standing as a bidder is the same as any others. If you fail to arrive on time for the sale, your lien may be eliminated.

Do I need the borrower’s permission to foreclose?
No. You already have their permission; they gave it when they signed the note and deed of trust.

What documents do I need to foreclose?
You will need to provide the trustee with the note and deed of trust, any modification or extension agreements, additional notes and any assignments. If an original document is lost, it may be necessary to provide a lost instrument bond. Consult with your trustee. You also need to provide the trustee with certain essential information, such as the unpaid balance of the note, the date to which the interest is paid, the reason for the default (such as failure to make the payment which became due on a certain date), information regarding any advances you have made, the last known residence or business address of the last known owner, and the property address. If you are not using the original trustee, a substitution of trustee must be signed and notarized by the beneficiary.

Why is an accurate “last known address” of the last known owner vital?
Failure to send notice to an accurate business or residence address of the last known owners may invalidate the foreclosure. Search all your records completely and carefully. If the borrower has more than one loan with your firm, review all sets of records. If the borrowers are married and you receive word from one of them that (s)he is no longer residing at the property address and you are provided with a new address, be sure to communicate that information to the trustee as soon as possible.

How long does it take to foreclose?
If there are no delays, a foreclosure will be completed in about four months. After the recording of the NOD there is a mandatory three-month waiting period before the trustee can publish the notice of trustee’s sale. Generally the sale will take place four weeks after the pre-publication period has ended. The date of the sale is influenced by the county where the property is located, the regular schedule of sales for that county and by the frequency of publication of the newspaper in which the trustee is required to publish. The trustee must also consider the newspaper deadlines for advertising and the time-necessary for preparation of the notice of sale and its delivery to the newspaper. The California Civil Code also requires that the notice of sale be posted on the property and a public place at least 20 days prior to the sale; adequate time must be allowed for this to be completed. If the IRS has recorded a federal tax lien at least 30 days before the sale, they require notification at least 25 days before the sale. If the loan is insured by the Veterans Administration, the sale date must be set to allow time enough for them to provide bid instructions.

Who pays the foreclosure fee and costs?
If the borrower brings the loan current or pays it off, the borrower is responsible to the lender for the foreclosure fee and costs. Since the lender is obligated to pay the trustee, the lender should be sure to not overlook these foreclosure expenses. If the property is sold to an outside bidder at the foreclosure auction, the foreclosure expenses will be paid by the bidder. Only when the lender is the successful bidder at the sale will the lender not be able to look to someone else to recover the trustee’s fee and costs. Hopefully, when the property is resold, the lender can expect to recover their foreclosure expenses.

Do all trustees charge the same?
No. The California Civil Code sets the maximum fee that is deemed to be valid and lawful. A trustee need not charge that maximum amount. The quality of service and the trustee’s financial strength should be of primary concern when selecting a trustee.

What is a Declaration of Default?
This document contains the official written instruction from the beneficiary to the trustee. Most deeds of trust require the beneficiary to furnish the trustee with a Declaration of Default. It identifies the deed of trust to be foreclosed, states the breach, and directs the trustee to sell the property to satisfy the indebtedness.

What is the fastest way to record the NOD? You may send the trustee a pre-signed substitution along with the other documents, or the trustee can prepare one and return it to you for your signature. If you are to be regularly using a trustee, you might consider giving the trustee a limited power of attorney authorizing them to sign the substitution of trustee and the notice of default. Sending pre-signed substitutions or giving a limited power of attorney reduces the time between your decision to foreclose and the actual recording of the notice of default to as little as 24 to 48 hours.


What are the most common delays to the foreclosure process?

  • The most common delay comes from the filing of bankruptcy.
  • A temporary restraining order (TRO) is used to preserve the status quo pending a court hearing for a preliminary injunction.
  • A preliminary injunction is used to preserve the status quo pending a final determination of the action on the merits.
  • The beneficiary or his servicer doesn’t send the trustee the most current assignment. The trustee prepares the NOD and the substitution with the wrong beneficiary shown. Several days after the documents are recorded the title company discovers the error. The trustee now must rescind the original NOD and re-record new documents. If there is uncertainty regarding the current beneficiary, ask the trustee handling the foreclosure to check with the title company for current information.
  • The recording information on the deed of trust was incorrect. A copy of the deed of trust has the recording information written incorrectly or the original deed of trust was re-recorded later.
  • The paid-to-date was incorrect.
  • The unpaid balance was incorrect.
  • The last known address was incorrect or incomplete.
  • Money (partial payment) is accidentally accepted from the borrower.
  • Instructions are misunderstood. The beneficiary instructs the trustee to cancel the sale rather than postpone, or postpone rather than sell.
  • The NOD is re-recorded (start-over) because of failure to notify someone.
  • Correspondence requiring response is accidentally filed rather than handled.
  • Opening bid information given to the trustee too late to order a date down of the trustee’s sale guarantee.


What law authorizes foreclosures through a trustee’s power of sale?
There is no law that authorizes a trustee’s non-judicial foreclosure; that power is created by the borrower when he signs that deed to trust, pledging the real property as security. The words used in the deed of trust are; “with power of sale.” There are, however, many laws that regulate the trustee. See California Civil Code section 2924.

How does bankruptcy of the borrower affect the foreclosure?
The filing of a petition of bankruptcy by the borrower, by a lessee (tenant) who has a recorded lease, or by the beneficiary of a junior deed of trust, immediately stops the foreclosure, with or without notice. The trustee may not proceed in any way; he may, however, postpone an already scheduled and noticed sale. If the trustee conducts a sale after a bankruptcy is filed, but without any knowledge of it, the sale is void or voidable depending on circumstances. See section 2924j. Before the trustee can continue the foreclosure, the lender must obtain relief from the bankruptcy court. You should seek legal advice immediately from an attorney who specializes in bankruptcy. Relief must terminate the stay against the property of the debtor and the property of the estate in bankruptcy. Relief as to the debtor is not relief as to the estate. The trustee’s sale cannot be held within seven days after the expiration of the stay in bankruptcy unless the court order so provides. See Civil Code section 2924g(d). Attorneys representing lenders in bankruptcy should include as part of their relief orders a statement that a foreclosure sale may occur immediately upon entry of the bankruptcy relief order.

Could a senior lender get relief from the bankruptcy stay and go to sale while the junior lender is still stayed?
Yes. If you are a junior lienholder, notify your attorney as soon as you get word of a bankruptcy. Assist them in every way to get relief before the senior lender does.

Who is entitled to receive a copy of the Notice of Default?
Within ten business days after the NOD records, notice must be mailed by certified/registered mail to the original trustors at the address shown on the deed of trust; the current owners,if known, at their last known business or residence mailing addresses, and to those who have recorded a request for a copy of a Notice of Default. In addition to the required certified/registered mailings, simultaneous mailings must be made by regular, first class mail to the trustors and current owners. See section 2924b(B)(1).
Within one month after the notice of default is recorded, a copy of the NOD must be mailed certified/registered to those entitled to notice under the California Civil Code section 2924b(c)(1), including the current owner of record and those lienholders with a recorded interest.

Does the borrower need actual notice to have a valid foreclosure?
No. The non-judicial foreclosure sections of the California Civil Code were designed to balance the needs of the borrower and lender. The procedure is supposed to be clear and easy to follow so that there is little reason to go into court to argue issues. The notification procedure provides many opportunities for the borrower to receive notice. If they do not make the effort to keep the lender of the trustee informed, they may lose their property without notice. The trustee has no obligation to search for a lost borrower. The borrower can give constructive notice with their current address. See I.E. Assocs., v. Safeco Title Ins. Co. (1985) 39 C3d 281, 216 CR 438.

What is a Trustee’s Sale Guarantee report?
The Trustee’s Sale Guarantee (TSG) report provides the foreclosing trustee with the information necessary to process your foreclosure and guarantees the correctness of that information. It sets forth the record owners and lists all exceptions of record against the secured property. It provides the names of those who are to receive notices and the name of the newspaper in which the trustee must publish. The TSG is provided by a title company in the county where the property is located. When you receive your copy from the trustee, you should be alert to certain items:

  • New Owners.
  • Delinquent real estate taxes.
  • Notice of defaultrecorded by a senior deed of trust. You should contact the senior beneficiary to determine if their loan is still delinquent.
  • Federal (IRS) tax liens recorded.
  • Bankruptcy.
  • Lis Pendens. This provides constructive notice of pending litigation, the outcome of which will not be affected by the foreclosure.
  • Notice of substandard dwelling.
  • Any irregularities noted therein.


Who should record a request for a copy of a Notice of Default?
If you are a junior lienholder and have changed you address from that shown on the upper left hand corner of your recorded deed of trust, you should record a request for notice pursuant to Civil Code section 2924b(a) showing your current address. Failure to do this may prevent you from receiving notice of a pending foreclosure on a senior deed of trust. Additionally, if you want a copy of a Notice of Default mailed to you within ten business days of its recording, record a request.

When can I refuse reinstatement?
For NOD’s recorded prior to January 1, 1986, reinstatement is allowed by law (unless the loan has reached full maturity) during the first three months; after the first three months you can refuse reinstatement. For Nod’s recorded after January 1,1986, you may not refuse reinstatement until five business days before the date set for sale or a postponed sale; after that you may refuse reinstatement. See Civil Code section 2924c(e). The standard FNMA/FHLMC deed of trust allows reinstatement by the borrower up to five calendar days before the sale date.

Who is entitled to reinstate the loan?
The trustor and any junior lienholder of record have the right to reinstate the loan. The reinstatement amount should be enough to restore the entire loan to its original installment basis and include attorney fee and costs which were necessary to protect the security, foreclosure fee and costs, late charges, and advances. Contact the trustee for updated fees and costs before accepting reinstatement. A partial payment may not cure the default. Accepting partial payment may invalidate the foreclosure. If you believe it is in your best interest to accept partial payments, consult your attorney regarding a written agreement between you and the borrower.

What costs can be included in the reinstatement or payoff amount?
Money advanced to protect the lender’s security, other than improvement of the property, are allowable. For instance, repairing a leaking roof, that would result in damage and decrease the value of the property, would be allowable. Replacing the whole roof would not be allowable. The costs of collection letters and advice from an attorney in certain instances now appear allowable. See Buck v. Barb 147 CA 3rd 920. Additionally, attorney fees and costs incurred while defending yourself in court or seeking relief from bankruptcy are allowable. Check with your attorney before including any questionable items. Also there are regularly allowable trustee’s costs for recording, mailing, publishing, posting, trustee’s sale guarantee, and one postponement fee of $50 upon the written request of the trustor pursuant to section 2924c(c).

How long does the publication period last?
After the three month pre-publication period has ended, a notice of trustee’s sale is prepared and sent to the newspaper for publication. The first ad must run at least 20 days before the scheduled sale date. The time between the first ad and the sale date is the publication period.

Where is the Notice of Sale published and how often?
The Notice of Sale is published in an adjudicated newspaper of general circulation in the city where the property is located.If there is not a paper adjudicated to run legal notices in that city; then a newspaper in the judicial district may be used.
The Notice of Sale must publish once a week for three weeks with the first ad running no later than 20 days before the sale.

Who is entitled to receive the notice of trustee’s sale?
All parties pursuant to Civil Code section 2924b and (b3).

What should the beneficiary do during the publication period?
During this period the lender should assess their equity position in the property to determine if they should bid less than their total debt.

Am I limited to only three postponements?
The lender or the trustee is limited to three discretionary postponements, after which it is necessary to republish the Notice of Sale. The lender may agree with the borrower to any number of postponements; it is best to get this agreement in writing and signed by the borrower. The sale can be postponed any number of times “by operation of law” or one time only for bankruptcy determination. See section 2924g(c). A Notice of Sale is generally considered stale after one year. It would then be best to re-notice the trustee’s sale.

Must I bid the full indebtedness, plus advances and costs?
No. It is not required and there may be good reasons not to. For instance, it you would like to encourage outside bidders, set the opening bid low and credit bid price upward until you reach your total indebtedness. Another reason that you might want to bid less than the full amount would be to allow for a claim to an insurance company for a casualty loss against the property. If you had bid the full indebtedness, the insurance company could claim that your debt had been fully satisfied. There may also be some tax consequences to consider.

Are the trustee’s sales really held on the steps of the county courthouse?
Yes. Most trustees use the same place to conduct their sales. The most common spot is the front entrance to the county courthouse, city hall, or hall or records. The only requirement by law is that it be conducted in a public place.

Is the trustee’s sale conducted orally or by sealed bid?
The sale is conducted verbally. The trustee will essentially announce that they are offering to sell at public auction to the highest bidder all right, title and interest conveyed to and now held by the described deed of trust. The sale will be made, but without covenant or warranty, express or implied, regarding title, possession or encumbrances. After the auctioneer makes an announcement, they will ask if there are any bidders who wish to qualify. If there are, each must show the auctioneer funds in excess of the opening bid. A junior lienholder must qualify as any other bidder and cannot use their lien for bidding purposes. Nomellini Const. Co. v. Modesto Savings & Loan Assoc. (1969) 275CA2d 114,79 CR 717. The auctioneer will note the total amount of funds each bidder possesses, so that they know when a bidder is no longer qualified to enter a bid. If a bidder tries to enter a bid that exceeds their funds, the auctioneer will ask them to requalify. Each bid is an irrevocable bid and replaces the previous bid. If a bidder reneges, they may be liable to the trustee for damages and subject to criminal prosecution and penalties. The successful bidder is the one who enters the final bid that is accepted by the auctioneer. See sections 2924g and 2924h.

Must I attend the sale and enter my own bid?
No. The trustee’s auctioneer will enter your opening bid on your behalf. However, you may attend the sale and enter your own bid. If you wish to bid more than your total debt due you, it would be necessary for you to appear at the sale with certified funds to cover any bids you make over the amount of your debt.

When am I entitled to possession of the property?
The title a successful bidder receives through a trustee’s deed entitles them to immediate possession. The purchaser may allow the previous owners or tenants to stay or they may bring an unlawful detainer action (eviction) to remove them. However, a lease recorded prior to the recording date of the deed of trust entitles the lease to priority over the title received through the foreclosure. A unrecorded lease, where it was reasonable to assume that a lease existed at the same time the deed of trust was recorded, may provide the same priority as a prior recorded lease. Alternately, if the lease is unrecorded and it was not reasonable to assume that a lease existed at the time the deed of trust was recorded or if the lease was recorded subsequent to the deed of trust which has been foreclosed, the purchaser at the foreclosure sale may choose to evict the tenants or allow the tenants to stay.

Is there a redemption period after the sale?
In a non-judicial sale there is no redemption period for the previous owner or junior lienholders. The Internal Revenue Service (IRS) has a 120-day right of redemption, if it had a properly recorded notice of a federal tax lien subsequent to your deed of trust.

What liens or rights may survive the trustee’s sale?
Failure of the trustee to notify a junior lienholder of record (absent his actual knowledge of the sale) may allow the junior lien to survive. It is as yet unclear under California law whether the buyer can claim “bona fide purchase” status to defeat the junior lien’s attachment. In any event, the junior lien could sue for damages if a BFP’s interest eliminated the junior. An IRS tax lien will not be extinguished for 120 days; during that time the IRS has the right to redeem the property. The rights of a plaintiff in a legal action, who has a properly recorded lis pendens, will survive the trustee’s sale. City and county liens, easements, homeowner’s association assessments, and mechanic’s liens, where the work was begun before the foreclosing deed of trust was recorded, may survive the trustee’s sale. Leases that were recorded prior to the foreclosing deed of trust will survive. An unrecorded lease where it was reasonable to assume that a lease existed may survive. If the foreclosing lender subordinated to a subsequent deed of trust, it will survive. Any liens that were recorded prior to the foreclosing deed of trust (which has not subordinated itself to the foreclosing deed of trust) will survive.

Who gets the over bid surplus?
Any moneys that exceed the foreclosing lender’s total indebtedness, including advances and expenses, will go to junior lienholders of record in the order of priority, and finally to the previous owner of record. If the trustee has doubts about where the moneys should be paid, they should commence an action for interpleader to avoid potential liability.

What happens if I feel sorry for the sold out borrower and deed the property back to them?
If your intent is to replace your original deed of trust with a new one having the same priority…BEWARE. The extinguished junior liens will revive; your new deed of trust will be subordinate. See Jensen v. Duke (1925) 71 Cal. App. 210.

When is the trustee’s sale complete?
The sale is final upon the auctioneer saying “sold” and the sale is deemed perfected as of 8am on the day of sale provided the Trustee’s Deed Upon Sale is recorded within 15 days of the actual sale date.

To find out how you can effectively challenge and save your home when faced with foreclosure challenges visit http://www.fightforeclosure.net

Share this:

  • Twitter
  • Facebook

Like this:

Like Loading...

Enter your email address to follow this blog and receive notifications of new posts by email.

Recent Posts

  • San Fernando Valley Con Man Pleads Guilty in Multi-Million Dollar Real Estate Fraud Scheme that Targeted Vulnerable Homeowners
  • Mortgage Application Fraud!
  • What Homeowners Must Know About Mortgage Forbearance
  • Cosigning A Mortgage Loan: What Both Parties Need To Know
  • What Homeowners Must Know About Filing Bankruptcy Without a Lawyer: Chapter 13 Issues

Categories

  • Affirmative Defenses
  • Appeal
  • Bankruptcy
  • Banks and Lenders
  • Borrower
  • Case Laws
  • Case Study
  • Credit
  • Discovery Strategies
  • Fed
  • Federal Court
  • Foreclosure
  • Foreclosure Crisis
  • Foreclosure Defense
  • Fraud
  • Judgment
  • Judicial States
  • Landlord and Tenant
  • Legal Research
  • Litigation Strategies
  • Loan Modification
  • MERS
  • Mortgage fraud
  • Mortgage Laws
  • Mortgage loan
  • Mortgage mediation
  • Mortgage Servicing
  • Non-Judicial States
  • Notary
  • Note – Deed of Trust – Mortgage
  • Pleadings
  • Pro Se Litigation
  • Real Estate Liens
  • RESPA
  • Restitution
  • Scam Artists
  • Securitization
  • State Court
  • Title Companies
  • Trial Strategies
  • Your Legal Rights

Archives

  • February 2022
  • March 2021
  • February 2021
  • September 2020
  • October 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • January 2019
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • September 2015
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013

Recent Posts

  • San Fernando Valley Con Man Pleads Guilty in Multi-Million Dollar Real Estate Fraud Scheme that Targeted Vulnerable Homeowners
  • Mortgage Application Fraud!
  • What Homeowners Must Know About Mortgage Forbearance
  • Cosigning A Mortgage Loan: What Both Parties Need To Know
  • What Homeowners Must Know About Filing Bankruptcy Without a Lawyer: Chapter 13 Issues
Follow FightForeclosure.net on WordPress.com

RSS

  • RSS - Posts
  • RSS - Comments

Tags

5th circuit court 9th circuit 9th circuit court 10 years Adam Levitin adding co-borrower Adjustable-rate mortgage adjustable rate mortgage loan administrative office of the courts adversary proceeding affidavits Affirmative defense after foreclosure Alabama Annual percentage rate Appeal Appeal-able Orders Appealable appealable orders Appealing Adverse Decisions Appellate court Appellate Issues appellate proceeding appellate record applying for a mortgage Appraiser Areas of Liability arguments for appeal Arizona Article 9 of the Japanese Constitution Asset Asset Rental Assignment (law) Attorney Fees Attorney general August Aurora Loan Services of Nebraska automatic stay avoid foreclosure Avoid Mistakes During Bankruptcy Avoid Mistakes in Bankruptcy bad credit score bank bank forecloses Bank of America Bank of New York Bankrupcty Bankruptcy bankruptcy adversary proceeding bankruptcy appeal Bankruptcy Appeals Bankruptcy Attorney bankruptcy code bankruptcy court Bankruptcy Filing Fees bankruptcy mistakes bankruptcy on credit report bankruptcy process Bankruptcy Trustee Banks Banks and Lenders Bank statement Barack Obama Berkshire Hathaway Bill Blank endorsement Borrower borrower loan borrowers Borrowers in Bankruptcy Boston Broward County Broward County Florida Builder Bailout Business Buy and Bail Buyer Buyers buying a house buying foreclosed homes California California Court of Appeal California foreclosure California Residents Case in Review Case Trustees Center for Housing Policy CFPB’s Response chapter 7 chapter 7 bankruptcy chapter 11 chapter 11 bankruptcy Chapter 11 Plans chapter 13 chapter 13 bankruptcy Chinese style name Chunking circuit court Citi civil judgments Civil procedure Clerk (municipal official) Closed End Credit Closing/Settlement Agent closing argument collateral order doctrine collection Collier County Florida Colorado Complaint Computer program Consent decrees Consequences of a Foreclosure Consumer Actions Consumer Credit Protection Act Content Contractual Liability Conway Cosigning A Mortgage Loan Counsels Court Court clerk courts Courts of Nevada Courts of New York Credit credit bureaus Credit Counseling and Financial Management Courses credit dispute letter credit disputes Credit history Creditor credit repair credit repair company credit report credit reports Credit Score current balance Debt Debt-to-income ratio debtor Deed in lieu of foreclosure Deed of Trust Deeds of Trust defaulting on a mortgage Default judgment Defendant Deficiency judgment deficiency judgments delinquency delinquency reports Deposition (law) Detroit Free Press Deutsche Bank Dingwall Directed Verdict Discovery dispute letter District Court district court judges dormant judgment Double Selling Due process Encumbered enforceability of judgment lien enforceability of judgments entry of judgment Equifax Equity Skimming Eric Schneiderman Escrow Evans Eviction execution method execution on a judgment Experian Expert witness extinguishment Fair Credit Reporting Act (FCRA) Fake Down Payment False notary signatures Fannie Mae Fannie Mae/Freddie Mac federal bankruptcy laws Federal Bureau of Investigation Federal Court federal courts Federal government of the United States Federal Home Loan Bank Board Federal Housing Administration Federal Judgments Federal Rules of Civil Procedure federal statute Federal tax FHA FICO Fictitious Loan Filing (legal) filing for bankruptcy Finance Finance charge Financial institution Financial reports Financial Services Financial statement Florida Florida Homeowners Florida Supreme Court Fonts Forbearance foreclose foreclosed homes foreclosing on home Foreclosure foreclosure auction Foreclosure Crisis foreclosure defense foreclosure defense strategy Foreclosure in California foreclosure in Florida Foreclosure laws in California Foreclosure Pending Appeal foreclosure process Foreclosure Rescue Fraud foreclosures foreclosure suit Forms Fraud fraud prevention Fraudulent Appraisal Fraudulent Documentation Fraudulent Use of Shell Company Freddie Mac fresh financial start Glaski good credit good credit score Good faith estimate Governmental Liability HAMP HAP hardship home Home Affordable Modification Program home buyer Home insurance homeowner homeowners home ownership Homes Horace housing counselor How Many Bankruptcies Can a Homeowner File How Much Debt Do I Need To File Bankruptcy HSBC Bank USA Ibanez Ibanez Case Identify Theft injunction injunctive injunctive relief installment judgments Internal Revenue Service Interrogatories Investing involuntary liens IOU issuance of the remittitur items on credit report J.P. Morgan Chase Jack Conway Jack McConnell joint borrowers JPMorgan Chase JPMorgan Chase Bank Juarez Judgment judgment creditors judgment expired Judgments after Foreclosure Judicial judicial foreclosures Judicial States July Jury instructions Justice Department Kentucky Kristina Pickering Landlord Language Las Vegas late payment Late Payments Law Lawsuit lawsuits Lawyer Lawyers and Law Firms Lease Leasehold estate Legal Aid Legal Aid by State Legal Assistance Legal burden of proof Legal case Legal Help Legal Information lender lenders Lenders and Vendors lending and servicing liability Lien liens lien stripping lien voidance lifting automatic stay Linguistics Lis pendens List of Latin phrases litigator load modification Loan Loan Modification Loan Modification and Refinance Fraud loan modification specialists Loan origination loans Loan Servicer Loan servicing Los Angeles loses Making Home Affordable Massachusetts Massachusetts Supreme Judicial Court Mastropaolo MBA Letter MBIA McConnell Means Test Forms Mediation mediation program Medical malpractice MER MERS Michigan Monetary Awards Monetary Restitution money Montana mortgage Mortgage-backed security Mortgage Application Fraud Mortgage broker mortgage company Mortgage Coupon Mortgage Electronic Registration System Mortgage fraud Mortgage law mortgage lender Mortgage loan mortgage loan modification mortgage loan modifications mortgage loans Mortgage mediation Mortgage modification Mortgage note mortgages Mortgage servicer Mortgage Servicing Fraud motion Motion (legal) Motion in Limine Motions National Center for State Courts National City Bank National Mortgage Settlement Natural Negotiable instrument Nelva Gonzales Ramos Nevada Nevada Bell Nevada Foreclosure Nevada mortgage loans Nevada Supreme Court New Jersey New Mexico New York New York Stock Exchange New York Times Ninth Circuit non-appealable non-appealable order Non-judicial non-judicial foreclosure non-judicial foreclosures Non-judicial Foreclosure States Non-Judicial States non-recourse nonjudicial foreclosures North Carolina note Notice Notice of default notice of entry of judgment Nueces County Nueces County Texas Objections Official B122C-2 Official Form B122C-1 Ohio Options Oral argument in the United States Orders Originator overture a foreclosure sale Owner-occupier Payment Percentage Perfected periodic payments personal loans Phantom Sale Plaintiff Plan for Bankruptcy Pleading post-judgment pre-trial Pro Bono Process for a Foreclosure Processor Process Service Produce the Note Promissory note pro per Property Property Flip Fraud Property Lien Disputes property liens pro se Pro se legal representation in the United States Pro Se Litigating Pro Se litigator Pro Se trial litigators Protecting Tenant at Foreclosure Act Protecting Tenants PSA PTFA public records purchase a new home Quiet title Real estate Real Estate Agent Real Estate Liens Real Estate Settlement Procedures Act Real property RealtyTrac Record on Appeal refinance a loan Refinance Fraud Refinancing registered judgment Regulatory (CFPB) relief remittance reports remove bankruptcy remove bankruptcy on credit report Remove Late Payments Removing Liens renewal of judgment renewing a judgment Reno Reno Air Request for admissions Rescission Residential mortgage-backed security Residential Mortgage Lending Market RESPA Restitution Reverse Mortgage Fraud Rhode Island robert estes Robert Gaston Robo-signing Sacramento Scam Artists Scope Secondary Mortgage Market Securitization securitized Security interest Se Legal Representation Self-Help Seller servicer servicer reports Services servicing audit setting aside foreclosure sale Settlement (litigation) short sale Short Sale Fraud Social Sciences Social Security South Dakota Special agent standing state State Court State Courts state law Statute of Limitations statute of limitations for judgment renewals statute of repose stay Stay of Proceedings stay pending appeal Straw/Nominee Borrower Subpoena Duces Tecum Summary judgment Supreme Court of United States Tax lien tenant in common Tenants After Foreclosure Tenants Without a Lease Tennessee Texas The Dodd Frank Act and CFPB The TRID Rule Thomas Glaski TILA time-barred judgment Times New Roman Times Roman Timing Title 12 of the United States Code Title Agent Tolerance and Redisclosure Transferring Property TransUnion trial Trial court TRO true owners of the note Trust deed (real estate) Trustee Truth in Lending Act Tuesday Typeface Types of Real Estate Liens U.S. Bancorp U.S. Securities and Exchange Commission UCC Underwriter Uniform Commercial Code United States United States Attorney United States Code United States Congress United States Court of Appeals for the First Circuit United States Department of Housing and Urban Development United States Department of Justice United States district court United States District Court for the Eastern District of California United States federal courts United States federal judge Unperfected Liens US Bank US Securities and Exchange Commission valuation voluntary liens Wall Street Warehouse Lender Warehouseman Washington Washington Mutual Wells Fargo Wells Fargo Bank withdrawal of reference write of execution wrongful foreclosure wrongful foreclosure appeal Wrongful Mortgage Foreclosure Yield spread premium

Fight-Foreclosure.com

Fight-Foreclosure.com

Pages

  • About
  • Buy Bankruptcy Adversary Package
  • Buy Foreclosure Defense Package
  • Contact Us
  • Donation
  • FAQ
  • Services

Archives

  • February 2022
  • March 2021
  • February 2021
  • September 2020
  • October 2019
  • July 2019
  • May 2019
  • April 2019
  • March 2019
  • January 2019
  • September 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • September 2015
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013

Website Powered by WordPress.com.

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • FightForeclosure.net
    • Join 338 other followers
    • Already have a WordPress.com account? Log in now.
    • FightForeclosure.net
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...
 

    %d bloggers like this: