Brady and Son Realty

A Real Estate Team from Keller Williams Silicon City

Building Dreams, one Home at a Time.

Our Goal is to help you navigate the complexities of Silicon Valley Real Estate such that you are happy to recommend us to your family and friends.

2221 Oakland Road #268, San Jose, CA 95131

Phone: 408-868-8052

Foreclosure: A process

Missed Payments:  The borrower falls behind in payments either because of circumstances or deliberately

Public Notice:  after 3-6 months of missed payments, the lender records a “Notice of Default” or “lis pendis”
In some states, this requires posting a notice on the property to notify the owner as well.

Pre-foreclosure:  After the Public Notice, the borrower has a grace period lasting from 30-120 days to work out an agreement.

Auction:  If agreement is not reached, the home is auctioned by the Trustee to satisfy the debt. Any remaining proceeds from the sale after paying the debt and recovery fees, is due to the former owner.

Redemption Period:  Under California Law, the owner has a right of redemption to maintain the property by paying the total due.

Post Foreclosure:  If a third party does not purchase the home at auction, the Trustee takes possession.  This is known as an REO – Real Estate Owned property.

REO properties are sold either by REO-specialist real estate agents or at a liquidation auction.

Settlement Options

Options to preserve the home, your investment, and your credit include the following. Note, not all options are available from all lenders and may depend on the particular circumstances:

Catch-up Plan:  A plan to bring the loan current, usually by spreading the past due amount over several months in addition to the regular payment

Forbearance :  Where the loan is recomputed, usually entails extending the term of the loan by the number of missed payments

Adjustment :  Under certain circumstances, a lender may accept modification of the terms of the loan either in interest rate, balance due, or both

Short Sale:  When the balance due is more than the value of the home, the lender may agree to a short sale to recover the bulk of the debt.

Regular Sale:  When the value of the home exceeds the debt, then the home can simply be sold to pay off the note.

Deed-in-lieu:  In this situation, the Owner turns over the keys and deeds the home back to the bank. Functionally, this is similar to foreclosure but without the bad marks on the credit report.

Note: there are credit reporting impacts from most of these options, but they do not carry the same penalty as foreclosure.

Getting Help

  1. First and foremost, if you haven’t already, talk to your lender. The rule changes enacted after the mortgage meltdown in 2008 give lenders incentives to work out solutions for the homeowners
  2. Consult a credit repair/debt consolidation specialist.
  3. Talk to a Real Estate Professional about the value of your home as-is. Even if you don’t want to sell, knowing the current market value is essential in negotiating with your lender and working out plans to recover solvency.

The accuracy of the information displayed in this site is not guaranteed. The user is advised to conduct their own investigations to validate any information on which purchase or sale decisions are made. Data from the Multiple Listings Service subject to applicable limits on accuracy and content.

Original content ©2018 Brady and Son Realty Team @ KW Silicon City . Referenced images and data subject to originator copyrights.