The best approach if you are a defendant in a foreclosure filing is to be proactive. Ignoring correspondence from the banks will only complicate the issue.
Because of the complex legal and financial details associated with the foreclosure process, homeowners at risk of foreclosure and those in foreclosure often have many questions. While the FAQs below are not inclusive, they do provide a baseline of information to help you take the first steps in resolving your mortgage issue.
Being proactive is the best approach if the possibility of foreclosure becomes real. If a life change like a job loss or an illness causes you to get behind on mortgage payments, contact your lender immediately. In many cases, lenders are willing work with homeowners who experience a temporary change in income status.
Do not ignore letters or phone calls from your lender. If you are having difficulty making your mortgage payments, call or write your lender to determine what options are available. Remember, local and state laws determine how much time you have to respond. Don’t wait to take action.
Call your lender immediately to discuss alternatives to foreclosure. If you can afford one, consider contacting an attorney. If you are unable to hire an attorney, some organizations like Legal Aid offer assistance to those who qualify. Visit our Foreclosure Resources page to learn more.
There is no set period of time to complete a foreclosure. However, there are specific periods of time in which you are required to respond to notices from your lender. In most cases, you have 20 days to respond once you have been served with foreclosure complaint. If possible, consult with an attorney regarding your legal options.
Generally, you should expect to vacate the property between 30 – 60 days once the foreclosure sale has been confirmed. If this is the case, a HUD-approved housing counselor agency can refer you to community services in your area that may be able to help. Visit our HUD-Approved Housing Counselor section for more information.
Foreclosure mediation brings homeowners and lenders together with a neutral, third-party mediator in an attempt to resolve issues related to a foreclosure action. Through a court order, the Orange County Bar Association is the official provider of foreclosure mediation in Orange County. For more information on foreclosure mediation, visit the Orange County Bar Association website.
Yes, if you abandon your home, you may not qualify for assistance from your lender or governmental agency.
The first step should be to contact your mortgage lender. Once you’ve done that, there are several governmental and non-profit resources that offer home counseling, load modification assistance, money management tools and more. Visit our Foreclosure Resources page for a list of agencies and organizations that may be able to help.
The foreclosure process can often be complex, involving financial and legal requirements that many homeowners are not experienced in handling. Seeking legal advice in these matters is always a good idea. Once you have contacted your lender, you may feel you need legal representation before making any decisions. If you are unable to afford an attorney, organizations such as the Legal Aid Society offer programs for those who qualify. Visit our Foreclosure Resources page for more information on pro-bono legal advice.