Santa Monica Pre Foreclosure

Santa Monica Pre Foreclosure

Santa Monica Pre Foreclosure

Many clients come to me with questions about the Santa Monica home's distressed situation. Santa Monica pre foreclosure and foreclosure laws are the same as every other city in California.

BORROWERS who are late in payments and seeking loan modifications are given by California Law SB 1137, the ammunition to discuss with their lenders their financial situation to avoid foreclosure. Lenders may file a Notice of Default and start foreclosure process if the borrower is late in payments.

Santa Monica Pre Foreclosure Question 1: What are the requirements in California before a Notice of Default is filed?

Answer: California law requires all lenders wait a minimum of 90 days once a borrower is past due before filing a Notice of Default.

California law also requires all lenders who will foreclose loans made between 2003 and 2008, must at least 30 days prior to filing a notice of default to:

Contact the borrower in person or by phone to assess the borrower's financial situation and explore options in avoiding foreclosure.

The lender must send a letter advising the borrower of their rights to request a meeting in person with the lender within 14 days, and must provide a toll free numbers for a HUD certified counseling agency.

The lender cannot initiate foreclosure until at least 30 days after contact with the borrower or 30 days following a diligent effort to contact the borrower. Diligence in this case means mailing a notice which includes the lender's toll free number, followed by three phone calls on three different days at three different hours, followed by certified letter return receipt requested.

Santa Monica Pre Foreclosure Question 2: Who are exempted under the above rules?

Answer: This law does not apply if the borrower has already filed for bankruptcy, has surrendered the home, or has contacted a person or entity whose primary business is advising those who have decided to leave their home, how to extend the foreclosure process and avoid their contractual obligations.

Santa Monica Pre Foreclosure Question 3: What is one of the best options for a homeowner that wants to avoid foreclosure?

Answer: Loan Modification is an option where a borrower can present his financial situation to the lender and request reduction in interest rate, extension of the loan term and possibly reduction in principal obligation (only in cases of severe hardship). Bankruptcy is another option that can help avoid foreclosure, but it is not a guarantee, it is important to talk to a bankruptcy and/or real estate attorney regarding your personal situation. Short sale is a great option. A short sale can help you sell your property through a negotiation with the bank and the help of your real estate agent. A short sale has less of an impact on your credit then a bankruptcy and you can move on with your life and your credit.

Santa Monica Pre Foreclosure Question 4: When should I start the short sale process?

Answer: As soon as possible. The longer you wait the tougher it is to negotiate with the bank. You'll need to contact me so that I can review your case and help you get all of the paperwork together. I will relieve you of the stress of having to deal with the bank personally. As a Santa Monica Pre Foreclosure specialist I can help you assess your situation before it's too late. Call me today.

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