Exploring Your Options For Stopping Foreclosure

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. Three months later, the lender is authorized under California 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 one month

Mail Notice of Default

After three months

Set trustee sale date

25 days before trustee sale date

Send notice of sale to IRS (as applicable)

Within 10 days from first publication of trustee sale

Send beneficiary request for property directions

Fourteen days before trustee sale date

Record Notice of Trustee sale

Seven days before sale date

If court action, seven-day rule may apply

Five business days before sale date

Expiration of borrower's right to reinstate 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.

We Are Ready To Recommend The Right Solution

Every case is different and presents its own challenges. Before pursuing a bankruptcy case it is essential that a potential debtor contact and speak with an experienced bankruptcy attorney in San Diego.

Contact McMillan Law Group today to arrange a free initial consultation. Simply call 619-880-4371 or send an email.

We are a debt relief agency that advises clients according to the federal Bankruptcy Code.