California Foreclosure Process timeline

This is a very stressful time where panic and anxiety can overcome the best of us. Just know you have many options when facing foreclosure but you'll need to take action prior to the auction date. When it comes to foreclosure in California, time is of the essence. At Freehold Solutions, we can assist you determine which is your best option for you and your family. Listed below are a few options but you must act before the auction date!

1. LOAN MODIFICATION:  Simply means to change or modify the terms of your original loan. You must apply and qualify. There is an upfront fee and a 5-6 month trial period. If you're (1) day late or $1 short, you will be back in foreclosure with more debt and less chance of being bought out by a cash buyer.
2. FORBEARANCE AGREEMENT: An agreement with the bank. The bank will ask for attorney fees and approximately 40-50% of the back payments up front. The remaining back payments (50-60%) will be divided between the next 6-12 month payments, raising your monthly payment until paid. At that time, payments will go back to their former amount. Once all back payments have been made the bank will send a "withdrawal" letter but until then, you're still in foreclosure with an extended sale date every month.
3. REFINANCE YOUR MORTGAGE: Can sometimes be impossible to refinance if you've been late on payments or are in pre-foreclosure. The bank may charge for appraisal fees, loan fees and broker fees before informing you that you do not qualify. 
4. DEED IN LIEU OF FORECLOSURE: You give ownership of your home and deed back to the bank. The bank will always accept this, however; the bank will place a Foreclosure on your credit. You could also end up with a 1099-C sent to IRS for additional income if the bank sells your home for less than what you owe.
5. SELL YOUR HOME THE TRADITIONAL WAY WITH A REAL ESTATE AGENT: This can take 30-45 days to close escrow after finding a buyer. We know some expert realtors that can work with you in this short time span. If you do list with a realtor, give them a "24 hour listing;" so you're not tied up in a long-term listing. You must disclose that you are behind in payments and/or in Foreclosure. 
6. SELL YOUR HOME TO A CASH BUYER: Sell your home to us, Freehold Solutions. We buy directly from you, outright. We will pay off the balance and all late payments/fees. We will cover all closing costs which include title fees. This is all done through a title company. Benefit to you, you walk away with CASH in your hands and begin your fresh start.
7. SELL YOUR HOME SUBJECT TO: Convey (transfer) your property to us by warranty deed. In exchange, we pay all late payments/fees to make the mortgage current. We then  continue to make the mortgage payments and discuss a date for you to vacate. This would require a discussion to determine an agreed upon amount. Please reach out to us if this is something you would be interested in. Benefit to you, is you can cash out on your equity. 
8. DO NOTHING AND LOSE YOUR HOME: Once your home goes into foreclosure, you lose all equity in your home and have no claim. Your home is sold at auction and shortly after a Sheriff Deputy will show up to your home and remove you, your family and all your belongings. Your credit will take a major hit that can disqualify you from acquiring new credit cards, purchasing a new home or even renting an apartment or house. A foreclosure will remain on your credit for 7-10 years. Retaining some money is better than losing everything including your credit standing.