You could hear the phrase “in foreclosure” used to describe the process. The truth is that foreclosure is a process, not a place. Before the property is sold in a foreclosure auction, there are significant legal changes. Just a warm-up is done before that.
Many people whose homes are at risk of foreclosure are unaware of their rights. For instance, some people think that if a residence is “under foreclosure,” they cannot take personal property from it, or that creditors can enter the house before the sale.
Many people think they should vacate their house before it sells. Continue reading to learn more, and call The Law Offices of Paul Y. Lee at 951-755-1000 if you have any questions or would like a free bankruptcy consultation after learning the information.
Until the house is sold through foreclosure, you own it
Until they acquire the title to the property, the lender is nothing more than an outsider; in order to do this, they must place the highest bid at the foreclosure sale. This means that without your consent, neither the lender nor anyone else may enter your property. It is quite legal for you to take any belongings out of your house.
Don’t let debt alter your way of thinking
Once more, keep in mind that being “in foreclosure” is not the same as being “in collections.” Many people who are facing foreclosure believe that the rules have changed and that if they keep going in the same direction, they will suffer the consequences. The process of foreclosure is the way there, not the end, even if it may result in losing property and changing your legal rights.
From the time you receive the formal notice of default until the sale, the process of foreclosing on a property in California often takes at least four months. However, foreclosing creditors occasionally fail to take the proper action, which can cause the process to drag on for months or even years. You have remained the legitimate owner of your property during that time.
Refrain from leaving until the foreclosure is complete
It is nearly always advisable to remain in the house until it has been formally sold, even if you are aware that you will lose it when it is foreclosed upon. Why? because you are able to live there without paying rent while you save up money to rent or buy a new place. You might be shocked to learn how protracted that procedure might be, during which time you could be saving money to restart.
We strongly advise speaking with a bankruptcy professional who can assist you determine the best course of action if you want to keep your home and are exploring bankruptcy options to do so. At your earliest convenience, call The Law Offices of Paul Y. Lee at 951-755-1000 for a free legal consultation.
