Stop Foreclosure Bankruptcy Alternatives

Home Foreclosure can be avoided through Bankruptcy:

In the midst of the nation's largest ever foreclosure crises, San Diego homeowners are on the brink of being homeless. The following is a brief summary of means by which a homeowner can take control of their situation through a Bankruptcy filing.

The Foreclosure Process and Timeline:

In California, after a homeowner becomes three months delinquent, the Lender is able to file a Notice of Default against the title to the Property. This is where the foreclosure process begins, and things accelerate quickly from this point. Three months later, the Lender is authorized under California State Law to Post a Notice of Sale and schedule a date and time 25 calendar days later for the auction or sale of the property. Once the Notice of Sale is posted and the Sale Date is Scheduled, filing for Federal Bankruptcy Protection is the only way to stop the sale of the Property.
Day 1
Notice of Default is filed with the county recorder.
Within 10 business days
Mail Notice of Default to borrower address
Within 1 month
Mail Notice of Default
After 3 months
Set Trustee Sale date
25 days before Trustee Sale date
Send notice of sale to I.R.S. (as applicable)
Within 10 days from 1st publication of Trustee Sale
Send beneficiary request for property directions
14 days before Trustee Sale date
Record Notice of Trustee Sale
7 days before sale date
If court action, 7day rule may apply
5 business days before sale date
Expiration of borrower's right to re-instate the loan
Sale date
Property is sold to highest third party bidder or reverts to Beneficiary at public auction

CHAPTER 13 Bankruptcy:

The most popular cure for mortgage default is through the process of Chapter 13 Bankruptcy. In a Chapter 13, the Debtor submits a Plan to the Trustee (known as the "Chapter 13 Plan"). Under "the plan" the delinquency can be remedied over a 36 to 60 month period. Filing for Chapter 13 Bankruptcy places an Automatic Stay against any foreclosure action by the Lien Holder.