Foreclosure and Deed in Lieu of Foreclosure – What are They & How Do They Work? Options 5 & 6 of you Owe More on Your Orange County, CA Home than It’s Worth, & You Don’t Know What to Do.
This is a series for people who are “upside” down in their homes and looking to learn about their options. For the the first three posts see You Owe More on Your Orange County, CA Home than It’s Worth & You Don’t Know What to Do
In my last post, I discussed short sales – what are they and can you have one? Today, we’re going to discuss foreclosures and deed in lieu on Orange County, CA homes.
Foreclosure on Orange County, CA Homes
California is a non-judicial foreclosure state. That means that a lender does not have to file a lawsuit in order to foreclosure on an Orange County, CA home.
Steps to non-judicial foreclosure on an Orange County, CA home:
- Lender files Notice of Default
- Generally occurs when borrower is at least 3 months behind on the mortgage.
2. Lender files Notice of Trustee Sale
- A Notice of Trustee Sale can be filed 90 days after the Notice of Default is recorded.
- Once a Notice of Trustee Sale has been posted, the bank can sell the house in 21 days.
- A Notice of Trustee Sale is often referred to as selling the house on the court house steps.
In California, a lender can foreclose on a home in 111 days, including the 90 day time period for the Notice of Default and the 21 days for Notice of Trustee Sale.
If you have received a Notice of Default on your Orange County, CA home, do not delay! It is time to look at your options and attempt to avoid foreclosure on your home.
Deed in Lieu of Foreclosure on Orange County, CA Homes:
A Deed in Lieu of Foreclosure is also known as a “friendly foreclosure” and sometimes may result in “cash for keys.”
In a deed in lieu, a borrower offers to give the home back to the lender without forcing the lender to go through an official foreclosure.
A deed in lieu may not be available where there is more than one lender unless the junior lenders will agree to the deed in lieu.
The lender might agree to a deed in lieu on an Orange County, CA home because it allows it to avoid the cost of the official foreclosure.
A borrower might choose to do a deed in lieu of foreclosure instead of a formal foreclosure to avoid the embarrassment of public foreclosure. Additionally, a borrower might negotiate a better outcome in a deed in lieu. However, sometimes, the lender may request that the borrower make a payment to obtain a deed in lieu.
For more information, see HUD’s deed in lieu FAQ.
I’ll discuss these further in a wrap up to this series.
Next time, we’ll discuss “If I Have a Short Sale, Can I Ever Buy a House Again?”.
We know what your options are when you owe more on your home than it’s worth and don’t know what to do, and we will share it with you over the next few weeks.
If you want to make sure not to miss any of this series, please subscribe to this blog to learn your options.
If you have questions in the meantime, please contact Christine Donovan at 714-319-9751 or e-mail Me!
About the author: Christine Donovan is a California Residential Real Estate Broker with experience in assisting clients buy and sell residential real estate.
Are you upside down in your home? Do you owe more on your Orange County home than it’s worth, and you don’t know what to do? Are you concerned about making your mortgage payment? Contact me at firstname.lastname@example.org or 714-319-9751 to discuss your options.
Want to buy a home or to list your property for sale in Newport Beach, Costa Mesa, Huntington Beach or Orange County? Contact me at email@example.com or 714-319-9751 to learn about our system which will make your buying and selling experience easier.
Disclaimer: All information in this blog is deemed reliable but is subject to change at any time and is not guaranteed to be accurate nor are there any warantees either express or implied. This blog is not intended to offer any legal, tax or other advice.
Click Orange County homes for sale to view all OC homes for sale.
Copyright © 2009 by Christine Donovan, All Rights Reserved. Foreclosure and Deed in Lieu of Foreclosure – What are They & How Do They Work? Options 5 & 6 of you Owe More on Your Orange County, CA Home than It’s Worth, & You Don’t Know What to Do.