How to Stop a Foreclosure

There are a number of ways to stop a foreclosure at different points along the foreclosure time line that starts when the lender files a notice of default (NOD) and sends you a copy. This is usually after about sixty days after you default on your loan and after several notices with the total amount in arrears that owe.

After the NOD, in California, you have up to five business days to stop a foreclosure sale by bringing your loan current–called your “right of reinstatement” period which is, at a minimum, 105 days. This is because 90 days after the NOD is issued, a notice of sale (NOS) lists the trustee sale date after at least 20 days of publishing the notice in a local newspaper.

If you don’t have money to bring your loan current, you can stop foreclosure by deeding your house over to your lender called a “deed-in-lieu-of-foreclosure” but the harm done to your credit is about the same as a foreclosure, namely the record will stay on your credit report for up to 7 years and prevent you from being considered for a home loan.

The best option to minimize a negative affect to your credit is to sell your house and payoff the loan but if you owe more than the house is worth, or are “upside down with your mortgage,” then you must do a “short sale”—a sale that brings in less than the loan amount. This is best left to professionals as much of the time it involves involved negotiation and to insure that you are forgiven for the balance of the loan under a financial hardship.

With over 30 years collective experience in negotiating and successfully completing short sales we will give you field tested advice and service. Let us tell you why we have over a 90% success rate compared to a 23% success rate among inexperienced realtors.

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