What Happens If I cant make my mortgage payments anymore
So if you get to the point that making your mortgage payments on your home is more than you can do before you completely stop first thing is try calling your mortgage company. You may want to see if you can get a loan modification on your loan. Just be careful on not getting scammed I posted several blogs already on what to look out for on getting loan modifications and not getting ripped off. Banks have gotten a little bit easier to deal with but still a challenge trying to get a loan modification but when it comes to either losing your home or getting a loan modification what do you have to lose in trying?
But on to what if you just know you will not qualify for a loan modification because you don’t have a job. Because regardless of what you have heard you have to show proof of income to get a loan modification. Some lenders will offer you a forebearance which is usually a temporary payment that can buy you some time to avoid foreclosure. They usually don’t even ask for any proof of income but at the same time it is temporary and if you can get them to reduce your payment to where you can afford it for the next 3 to 6 months you might be able to avoid foreclosure all together. Keeping your home off the Santa Maria real estate market and joining the ranks with many other home owners so you are not alone, if it comes to this.
If the lender is not willing to work with you then it will lead to them having to file a notice of default on you (NOD), with county recorders office. Usually this happens 3 months after you have not paid your mortgage payment. But things have changed with so many homes going into the foreclosure process it many even be 6 months before they even file a NOD on you. Once the NOD is filed it’s the start of the foreclosure process.
Now you have to remember these are not normal times we are currently living in and time frames in todays real estate market are taking longer than normal. If another 3 months passes by this is where trustee comes in to play and files a notice of sale. This is where they auction your home off at the county court house. The notice of sale is published locally in a local paper with your name and address and the amount of the note or mortgage and the date of the trustee sale all the embarrassing and pertinent information needed. It will come out at least once a week for three weeks.
Now this is still your redemption period if you can come up with all payments owed and fees etc etc. Also if you can get them to postpone it at least 3 times they will have to start over again with a new notice of sale.
Now once the home goes to the auction block anyone can buy it at the highest bidder above what the minimum bid which is established at the auction. Sometimes the minimum bid is what is owed on the home when that happens it just goes back to the bank since no one is going to pay for a home for more than what it is worth. Some times the minimum bid is actually less than what is owed and I have even seen less than market value. But the catch is that it must be in CASH at the spot usually MUST HAVE CASHIERS CHECKS IN THE AMOUNTS OF $10,000.00. There is no getting a loan or thinking about it, this is a do it now, or move on situation. So as you can tell its not for everyone and who ever the buyer is also accepts any issues that the property has so if its your home I am sure you know what issues the house may have if not then I hope your did your homework.
I wish you luck in what ever decision you choose and the best if you are facing a hard ship on making the payments on your home.
If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of California not just on the Central Coast please contact me by sending me an email at: GenePerez@GMSLoans.net
I do also service all the nearby communities and other markets for real estate transactions such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.
