Making the most of California foreclosure recovery requires that you contact your lender as soon realize you may not be able to make your mortgage payment. Lenders do not want your commercial property since they usually end up losing money in the foreclosure process, and will be able to offer more options the sooner you contact them.

The next step in the CA foreclosure process is to determine if your inability to keep up with your payments is a short-term or long-term problem. A long-term issue usually will require a modification to the mortgage terms or a partial claim, which is essentially a one-time interest-free loan from your mortgage insurer. There are three options to resolving a short-term challenge with mortgage payments:

1. Forbearance; your lender allows reduced or suspended payments for a short period of time to allow you to make a California foreclosure recovery.
2. Reinstatement; you pay the total amount of the loan in a lump sum. This option may be accompanied by forbearance.
3. Repayment plan; your lender agrees to accept regular payments in addition to a portion of the payments that are past due until the account is brought current.
   

Action Steps
The best contacts and resources to help you get it done

Learn more about California foreclosure laws

The laws on foreclosures vary widely by each state. Government sites may provide the full text of California foreclosure law and other sites may provide a summary of foreclosure laws.

I recommend: Foreclosure Radar provides a summary of foreclosure laws in California including judicial and non-judicial foreclosures. Wolters Kluwer discusses the impact of California SB 1137 which is a foreclosure relief bill.

Visit the website of a California foreclosure attorney

An attorney that specializes in foreclosure laws in California can protect your interests in the event of a foreclosure. Attorney websites may also provide specific information on foreclosures or maintain links to resources for foreclosures.

I recommend: Maldonado & Markham provides articles on foreclosure law in California. Coggins Johnston & Myer specializes in bankruptcy and foreclosure law and also offers specific information on foreclosures in California.

Find more sources of California foreclosure help

There are online resources that can provide tips on avoiding a foreclosure and financial counselors may be able to negotiate with your lender if needed. Financial planning services may assist you in organizing your finances.

I recommend: ForeclosureFish maintains a blog on foreclosures in California.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Learn your mortgage rights by reading your loan documents. This will tell you what your lender can do if you can't make your payments to avoid a California foreclosure recovery. California residents should also read any mail they receive from their lender. Initial letters should provide options on making a foreclosure recovery and later letters may include important notices of pending legal action.

California foreclosure recovery can be a strenuous process for the homeowner in distress. However, there is help out there. If you are facing foreclosure in California, know that you are not alone. California has one of the highest foreclosure rates in the nation.

If you need California foreclosure help, it is best to talk with your lender right away. There may be several options to keep you out of foreclosure including:

1. A short sale--when the lender agrees to let the home sell for less than the mortgage that is owed. Since the home is sold at a discount, it usually sells quickly and keeps the homeowner out of the California foreclosure laws.
2. Deed in lieu of foreclosure--when the homeowner deeds the home back to the lender. This will let the homeowner walk away from the house without going through foreclosure.
3. Mortgage repayment plan--the lender is willing to give the homeowner leniency and help to get the mortgage back on track.

Action Steps
The best contacts and resources to help you get it done

Know your rights in California foreclosure law

Foreclosure laws in California are very specific and keep the lender from suddenly sweeping in and taking your home. For example, in California, homeowners have three months to recover their home after a notice of default has been filed with the trustees office. If you know your rights in California foreclosure law, you will know more of your options.

I recommend: Research California foreclosure law at Advantage Mitigation Services. Also, Foreclosure University outlines Foreclosure laws in California. A timeline of the CA foreclosure process is available at AllForeclosures.com.

Seek out help with California foreclosure recovery

There are several options for people seeking foreclosure recovery. California has several alternatives for solutions through government or non-profit organizations.

I recommend: Find CA foreclosure consultants certified through the Federal Department of Housing and Urban Develpment (HUD). These housing counselors are trained to help homeowners find their options. Consumer Credit Counseling Service offers a free online course which outlines the options of California homeowners who want to keep their home.

Look for a California foreclosure attorney

A California foreclosure attorney will help you know your rights and may be able to work with your lender to keep you in your home.

I recommend: Attorneys.com has a list of California foreclosure lawyers by city. You can also contact a California foreclosure attorney through ForeclosureLawFirms.com.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Watch out for scam artists who want to steal your home. There are several people who are looking to take advantage of California homeowners in distress and promise to help save their home. If a deal sounds too good to be true, it probably is.
• •  Seek out help as early as you can for foreclosure recovery. California has several options for help, but they work best when you aren't too far behind on your mortgage.

You just got served the papers and the CA foreclosure process has begun. What do you do? The one thing you don't want to do is wait and hope your troubles will just go away. Start by finding out all you can about California foreclosure laws and regulations. Each state has its own rules when it comes to recovery on a foreclosed home or business.

Too many times, the home or business owner tries to work things out with the bank. While that avenue can be addressed, the property owner can also be involved in the court process. There are thousands of rules written into CA foreclosure law, and it can be intimidating. But you also have the right to have your day in court.

Consider this other information:

1. A California foreclosure attorney can advise you of your rights in recovering your foreclosed property and can lead you through the legalese.

2. There are several steps to the California foreclosure process. Pay special attention to each stage and exercise your rights to recovery only at the appropriate time.

3. California foreclosure laws allow the property owner to reclaim the property within one year.

Action Steps
The best contacts and resources to help you get it done

Find the law information relating to foreclosure recovery in California

There's a lot of information to comprehend when it comes to foreclosure law. The rights of the default home or business owner are clearly outlined within the law. Whether a judicial or nonjudicial foreclosure will be pursued depends entirely on how the original sale contract and deed of trust was handled.

I recommend: Find summaries and basic information on CA foreclosure laws from Foreclosure University and United States Foreclosure Law.

Review examples of California foreclosure law

Not sure exactly how laws and regulations are used in real-life foreclosure scenarios? There are plenty of examples to follow online through foreclosure articles. Make comparisons to your own unique situation and see if you would have handled the foreclosure process differently in those instances.

I recommend: Read this Maldonado & Markham article full of real examples of how the foreclosure process works. Find a recovery timeline and a guide on how to read a default notice from RealtyTech.

Get updates on foreclosure laws in California

There's a chance that foreclosure recovery laws could change with every legislative session. From the tiniest word change to entirely new laws, you'll want to be aware of new laws because of theimplications to your properties and the process. Keep up to date on the latest foreclosure laws by checking in with credible sites that offer routine legal updates.

I recommend: Receive legal updates and news on foreclosure laws from Morrison& Foerster. Gibson Law offers legislative updates on California foreclosure laws.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate,' up-front fees, and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you seek foreclosure help only from government-sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.