Question: I am in California. I missed my first payment Sept 1. I got a letter telling me to bring things current by Dec 16th. What happens now? I am not sure when the period of redemption begins? Was I already in it? Or does it begin Dec 16 and go three months? People tell me different things and I am a single mom of four kids and need to plan. Thank-you. Nomi
Answer: -Nomi, the California redemption period is approximately 3 months and begins after you receive the notice of default. Typically you won’t receive a notice of default until you are at least 3 months behind on your mortgage, especially now, banks are slower issuing the notices of default because they don’t need any more inventory. So you’re about 6 to 8 months out from foreclosure, if it goes that far, so you do have several options as a homeowner. Unfortunately Obama’s HAMP program hasn’t turned out the way we had all hoped, however there are alternatives. Assuming you want to stay in your home, one option is a loan modification. This is something you can do yourself or you can hire an attorney to do it for you…just be careful in choosing the right attorney that really does care about your situation and will guarantee their work. Another option is to sell your home, if it has equity, and move into something smaller or less expensive until things pick up again. If your home does not have equity and a loan modification doesn’t work, you could try to do a short sale where a buyer offers the bank less than what is owed on the property. Whatever you do, don’t give up.
I live in planet CA. I have been working on my own to modify my 1st with GMAC and the 2nd line of cr thru GMAC Homecomings Financial. i was on the Obama HAMP for 3 mo. making all payments. It was a blessing. Unfortunately GMAC pulled it when it was due to be final oct 1. GMAC said my income was to low for the 31% income/paymt issue. I was making all pymts on time. GMAC then offered a govt loan of 2% and it raised my paymt $200. I have read on this site about filing Ch 13 and it will stop foreclosure. Any input on that? In your advice to Nomi in CA; it was not mentioned. today i will start looking for an attorney in ref to ch 13. Can we all now do what GMAC did by filing BK. I would advise all persons to work on your own modification 1st. I want to stay in my home. i am on disability now for 5 yrs. I have been in my home 20 yrs. i don’t want to move. i have sold most all furniture in my home. this all occurred after a friend renting a room moved in with his unemployed children to use his disability income to help them.
Susan
I have somebody who is not in default but darn close. Still gainfully employed and with high monthly income but his 1st went ape s#@t on him over the last two yrs, going from a $3K pmt to $6K. In 1 yr he burned thru his entire savings servicing his GMAC mortgage. Has been trying to sell house for 1 yr but can’t b/c comps going for well under total he owes. Not in default but concerned he will soon so he contacted me.
I told him to contact the bank and tell them his story and try for a loan mod or perhaps an early SS.
He just came back to me and said “They tentatively agreed to a Short Sale below what is owed and then present them with a contract for sale (once I get a buyer) for their consideration”
He has listed the house.
He has a second but has not contacted them about the situation. Not sure if they are open to it or not.
What do I do now?
We are going through the exact same thing. I work with someone that is closing on their home with a short sale. We have the same 1st lender GMAC or Homecomings. They have tentatively agreed with us too but they said they won’t really even talk to us until we fill out the packet, give them the last two check stubs and two months of bank statements which we have done. Now they said we just have to wait for a buyer. The market is falling so fast here in SW Florida that we have dropped 45,000 in price since February. They hired a realtor to look at our property to give them an estimate of what our property is worth but won’t tell us. That is very frustrating. They are stating they will give $1,000 to the 2nd lendor. When we called the 2nd lendor they won’t even talk to us until we have a buyer. My co-worker had to cash out her 401(k) for 30,000 and pay to the 2nd lendor and they wrote off $40,000. So I don’t think you can do anything until you have an official buyer. Not sure if this will help but just have my own first hand information.
Seems like there are more of these lately. Sign of the times.
I think I’ll just tie up the property with my Absolute Assignment of Rights doc and then put in a ss offer and at same time market and see what a buyer will pay and setup 4 a double close. If the spread is enough I’ll go for it otherwise I’ll walk away for liqudated damages…10 bucks…whoopie
All you need to do is find a buyer. Put the house up for sale and see what someone is willing to pay for it. Even if they offer 100K under what is owed, you can take that offer to the lender and see what they say. Find out what price they are willing to discount it to. At least then you know and you can see if you can find buyers at the discounted price. If you haven’t done anything with the 2nd, you need to. They are usually more willing to discount and give you larger discounts because they are more at risk.