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?

September 29th, 2009 by Jarad

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.

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One Response to “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?”

  1. susan Says:

    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

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