VACAVILLE, CA, Apr 24, 2024—As a homeowner, the idea of foreclosure is upsetting process. However, it doesn’t necessarily mean the end of your days as a property owner. Below, Stephen Spencer, Bev Dorsett & Sue and Steve Kappel, Broker/Owners of Coldwell Banker - Kappel Gateway offers up several things to know about the foreclosure process.
Three payment rule. Generally, foreclosure proceedings begin after the borrower has missed three consecutive mortgage payments. “The lender will record a notice of default against the property,” says Sue and Steve Kappel. “And unless the debt is satisfied, the lender will foreclose on the mortgage and proceed to set up a trustee sale, where the property is sold to the highest bidder.”
You have options. If you’re facing foreclosure, you still have a few options. “You may be able to refinance the debt or extend the term of your mortgage loan,” says Sue and Steve Kappel. If you have mortgage insurance, the insurer may also be interested in helping you. The company can temporarily pay the mortgage until you get back on your feet and are able to repay their “loan.”
You CAN buy again. If your home was foreclosed on, it doesn’t mean you will never be a homeowner again, explains Sue and Steve Kappel. But a lot will depend on your circumstances and the mortgage interest rate you are willing to pay. “Generally, most lenders will consider your request for a home loan two to four years after your foreclosure,” says Sue and Steve Kappel. Predatory lenders will issue a home mortgage in less time. But beware – they routinely charge high mortgage interest rates, fees, and penalties for this privilege. A quality lender will expect you to show that you have cleaned up your credit. Providing a reasonable explanation about the circumstances that led to the foreclosure – such as exuberant medical expenses – is also helpful.
For more information on foreclosures, please contact Coldwell Banker - Kappel Gateway at info@kappelgateway.com, 707-427-5344, or Coldwell Banker - Kappel Gateway.