While foreclosures hit record lows in 2020, there has been a 67% increase compared to the 3rd quarter of last year. This is due to expiring mortgage bailouts that were put in place previously, which means that foreclosure stats will continue to climb. It puts many borrowers at risk for foreclosure.
Are you an Oakland area homeowner that dealing with foreclosure for the first time? If so, it is important to learn as much as possible about the process in order to stay informed and retain your home. Check out this guide from our foreclosure attorney highlighting several common terms to help you prepare.
What is Foreclosure?
Foreclosure is a legal process initiated by a lender who has stopped receiving payments from a homeowner. For example, after a certain amount of missed payments, an Oakland home can be foreclosed upon. The lender can eventually force the sale of the home in order to recover the balance of the loan.
Some homeowners will resort to a short sale in order to avoid having their home foreclosed upon. A short sale is when a borrower puts a house on the market and sells it for less than the amount left on the mortgage, which must be approved by the lender. A short sale vs. foreclosure is usually preferable since a foreclosure will appear on the homeowner’s credit.
Common Terms in the Pre-Foreclosure Process
It’s important to know some of the most common foreclosure terms in the pre-foreclosure stage of the process such as foreclosure avoidance assessment. Prior to foreclosure, the lender must give you 30 days to explore alternatives before they give you a Notice of Default, which is the first public record before a Notice of Sale is issued.
Right of Redemption
Many states like California have a Right of Redemption law which allows homeowners to reclaim their property. You can do this by paying any outstanding interest and penalties before the foreclosure sale goes through, and in some cases after the sale has occurred. If you are considering exercising this Right of Redemption, it’s important to seek legal advice to see if this is an option for your case.
Prepare for Foreclosure with an Oakland Attorney
Now that you’ve had a chance to review this glossary of foreclosure terms, you can continue to be proactive about your situation. These common terms can help arm yourself with the knowledge to help you decide what your next move is, and whether or not you need legal assistance in the Oakland area.
The law offices of Jason W. Estavillo have a proven track record of helping people keep their homes from foreclosure. If you want a lawyer you can trust to prevent your property from being foreclosed, contact us today. We offer a free 15-minute phone consultation to see if we can assist you.