Judicial vs. Non-Judicial Foreclosure-California is a Non-Judicial State.

Judicial and Non-Judicial Foreclosures

Each state in the U.S. handles it’s real estate foreclosures differently, it’s important to understand those differences and know your specific state’s procedures. The terms used and time frames vary greatly from state to state, but the following information provides a general overview of the different processes and considerations. If you haven’t done so yet, you can review our guide to each state’s procedures at foreclosure procedures.

Judicial Foreclosures

Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security for the loan. The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff’s sale. The sheriff’s sale is an auction, open to anyone, and is held in a public place, which can range from in front of the courthouse steps, to in front of the property being auctioned. Sheriff’s sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid from later that same day up to 30 days after the sale. Check your local procedures carefully. At the end of the auction, the highest bidder will be the owner of the property, subject to the court’s confirmation of the sale. After the court has confirmed the sale, a sheriff’s deed will be prepared and delivered to the highest bidder, when that deed is recorded, the highest bidder is the owner of the property.

Non-Judicial Foreclosures(California is this!)

Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. When a loan default occurs, the homeowner will be mailed a default letter, and in many states, a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder’s office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the sale, or very shortly thereafter.

It is important to note that each non-judicial foreclosure state has different procedures. Some do not require a Notice of Default, but start with a Notice of Sale. Others require only the publication of the Notice of Sale to announce the sale, with no direct owner notification required. You need to know the specific procedure for your state.   The following from: http://www.all-foreclosure.com/judicial.htm

This Week’s show! Scary Foreclosure action happening! Jeremy Olsan Attorney at Law our Guest!

  We are very pleased and proud to have Jeremy Olsan “in-studio” this Sunday. It’s been a while since he appeared on the show and many issues have surfaced since his last appearance–Foreclosures, Short-Sales, Debt Foregiveness, Recourse Loans, on and on! We’ll be discussing the recent article in the Press Democrat on faulty foreclosures and the blizzard of lawsuits which will seek relief for those who’s home’s have been repossessed. Should make for a very interesting, highly paced hour!

JEREMY L. OLSAN
Partner
PERRY, JOHNSON, ANDERSON, MILLER & MOSKOWITZ LLP
438 First Street, 4th Floor
Santa Rosa, CA 95401
Tel: (707) 525-8800  Fax: (707) 545-8242
Email: olsan@perrylaw.net Website: www.perrylaw.net

JeremyOlsan

Record One Month Bank Repossessions! Over 102,134 in September! Startling Stat!

Realty Trac reports–Foreclosure activity increases 4 percent in Q3
Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 930,437 properties in the third quarter, a nearly 4-percent increase from the previous quarter, but a 1-percent decrease from the third quarter of 2009, according to RealtyTrac’s latest U.S. Foreclosure Market Report.  The report also showed that one in every 139 U.S. housing units received a foreclosure filing during the quarter.

During the month of September, foreclosure filings were reported on 347,420 U.S. properties, an increase of nearly 3 percent compared with the previous month and an increase of 1 percent compared with a year ago.  A record total of 102,134 bank repossessions were reported in September, the first time bank repossessions have surpassed the 100,000 mark in a single month.

Continue reading Record One Month Bank Repossessions! Over 102,134 in September! Startling Stat!

Today’s Foreclosure and Short-Sales Scam Shark Alert file!

  Follow this LINK to our Radio Show “Short-Sale,Foreclosure Scam and HAFA” folder. This folder contains all the information we spoke of today plus additional publications on how to do a short-sale and other interesting articles, checklists and alerts. Remember, DON’T sign ANYTHING without first having your attorney and or accountant thoroughly review the document!! At the very least call Allison (799-3617) or Mike (322-8503) to bounce it off of us. Don’t let those “pearly whites” take a chunk out of your pocket book!  (All the publications in this file are by the most recent date starting from the top left! )

Avoid Foreclosure Prevention SCAMS!! Shark Alert!! Watch out for those pearly whites!

These Red Flags should alert you to possible Foreclosure Scams coming at you! Don’t compound the difficulty of possible foreclosure by adding insult to injury and falling for a shark!

If you’re looking for foreclosure prevention help, avoid any business that:

  • guarantees to stop the foreclosure process – no matter what your circumstances
  • instructs you not to contact your lender, lawyer, or credit or housing counselor
  • collects a fee before providing you with any services
  • accepts payment only by cashier’s check or wire transfer
  • encourages you to lease your home so you can buy it back over time
  • tells you to make your mortgage payments directly to it, rather than your lender
  • tells you to transfer your property deed or title to it
  • offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
  • offers to fill out paperwork for you
  • pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

If you’re having trouble paying your mortgage or you have gotten a foreclosure notice, contact your lender immediately.

What to do when the Sale Price Leaves you Short!! Short-Sale basics & Avoidance!

Navigating Short Sales: What to Do When the Sale Price Leaves You Short

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

 1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as:

Not so Good Historic Numbers in Real Estate-Properties SOLD which are UNDER WATER!

homeudnerwater

The above chart is startling to say the least. Never in my 30+ years in the business, and one could argue since the Great Depression, have we seen THIS many homes being sold because the owners OWED MORE than the property was worth. Look at the timeline since 2000 and then for the past three years! When the market was roaring folks where refinancing and pulling out more cash, and repeating the cycle every time rates went down or they had more equity. Even those who bought with zero down recieved offers for credit lines making their total Loan to Value in excess of the homes worth. These folks defaulted in massive numbers back in 2007. The flood of REO’s came about from the huge amount of sub-prime lenders and buyers. Defaults and foreclosures soared but Consumer Confidence  hung on during the drop of sales and median price through 2007 but it was consumer’s hoping for the best but also being OUT OF THE LOOP. When the REO’s hit consumer confidence dropped like a stone!

BofA–Short Sale Page has tons of tips! Action items! Check it out!

I ventured out onto the internet and was reading an article on how NAR (National Assoc. of Realtors) is trying to get the big peer banks(BofA, Wells Fargo, CitiMortgage, Chase) to start getting some conformity and consistency of policy regarding the sticky business of Short-Sales. I was surprised at the depth of the Short-Sale portion of BofA’s web site. Check it out at the link below!

http://realestateagent.bankofamerica.com/content/documents/10Tips.pdf

Judicial and Non-Judicial Forclosures–Huh? California IS A NON-Judicial Foreclosure State!

Judicial and Non-Judicial Foreclosures

Each state in the U.S. handles it’s real estate foreclosures differently, it’s important to understand those differences and know your specific state’s procedures. The terms used and time frames vary greatly from state to state, but the following information provides a general overview of the different processes and considerations. If you haven’t done so yet, you can review our guide to each state’s procedures at foreclosure procedures.

Continue reading Judicial and Non-Judicial Forclosures–Huh? California IS A NON-Judicial Foreclosure State!