Foreclosure Prevention

Are you at risk of foreclosure?

Contact Fair Housing of Marin. We offer the following services:

• Foreclosure education and clinics
• Default and budget counseling
• Financial assessment to determine best options
• Predatory lending investigation

 
 What You Can Do

• Educate Yourself

Learn about the foreclosure process and know your options.

• Be Proactive

Don't hide from the problem or ignore letters or calls from the lender.

• Call your Mortgage Company

Try to negotiate with your lender and make a personal contact.

• Talk to a Housing Counselor

Contact a HUD Approved Housing Counseling agency, such as FHOM, or an effective foreclosure agency.

Alternatives to Foreclosure

Explore your options!

Refinancing
Before missing any payments, explore refinancing options with your lender or other financial institution in order to maintain an affordable loan.

Loan Modification
A loan modification changes the terms and conditions of your loan to accommodate your financial situation by lowering your interest rate and/or extending the term of the loan. 

Repayment Options & Forbearance
A lender may agree to add missed payments to your principal or forbear for a period of time from enforcing the express terms of the loan with the intent to allow you to bring your loan current.

Short Sale
If you owe more than what your house is worth, the lender may allow you to sell your home for the current fair market value. The determination of whether a short sale occurs is in the lender’s sole discretion. The difference between the final sales price and what is owed may be forgiven, but it could be taxed as income. Consult a tax advisor.

The 5 Steps of the Foreclosure Process

Step 1 - Default Payments
Foreclosure proceedings can begin after a single missed payment. However, most    lenders generally wait until the second missed payment before they begin the foreclosure process.

Step 2 - Pre-foreclosure Requirements
If your loan was obtained between 1/1/03 and 12/31/07, then the lender may not   record a Notice of Default (Step 3 below) without first contacting the borrower to assess his/her financial situation and explore options to avoid foreclosure.

Step 3 - Notice of Default
Generally, after two missed payments, the lender may record with the county recorder a Notice of Default (NOD.) After recording a NOD, the lender will not accept partial   payments and will add trustee’s fees and related foreclosure costs to any delinquent amount. The NOD period lasts 90 days.

Step 4 - Notice of Sale
After ninety days from the NOD, if the homeowner cannot cure the default or find an alternative to avoid foreclosure, the lender may record a Notice of Sale (NOS.) The NOS period lasts 21 days before the foreclosure sale. The homeowner’s right to reinstate the loan expires five business days prior to the sale date.

Step 5 - Foreclosure Sale
On the sale date, the lender or another third party bidder can purchase the property, or the auction can be postponed. If no bid higher than the lender’s opening bid is received, the property is then conveyed to the lender and a trustee deed is recorded. In California, there is no redemption period (meaning the legal right to cure after the completion of a non-judicial foreclosure).

Note: The foreclosure process and timing may vary with each individual case. Contact your lender or a qualified housing counseling agency, such as FHOM, as soon as you default in your payments to determine your options. In addition, check with your tax advisor to assess tax repercussions.

Where to Get Help

Fair Housing of Marin                                     (415) 457-5025
www.fairhousingmarin.com

Marin County District Attorney                       (415) 499-6495
Consumer Protection Unit            
www.co.marin.ca.us/da
  
www.hud.gov

www.makinghomeaffordable.gov
                      
http://www.foreclosurelaw.org/California_Foreclosure_Law.htm

http://www.consumer-action.org/english/articles/saving_your_home_from_foreclosure

Fair Housing of Marin (FHOM)
HUD Approved Housing Counseling Agency

For more information, contact: Corinna Hensley: