California foreclosures are conditions in which homeowners are not able to make principal and/or interest payments on their mortgage and, as a result, lenders may confiscate and sell the property as predetermined in the terms of the mortgage contract. Lender may offer homeowners a number of different options, depending on the situation.
California foreclosures depend on whether the borrowers want to keep the property or not. If they do not wish to do so, the property owners can sell the property themselves before the mortgage forecloses. The advantage of this is that borrowers will not have a foreclosure judgment on their credit record. This can assist in making it easier to secure finance in the future. This alternative of selling the property before foreclosures will probably be open for more homeowners who have equity in the property.
Another option available to homeowners in California before foreclosure is to file bankruptcy. Borrowers can either file a Chapter 13 or Chapter 7 bankruptcy. A Chapter 13 bankruptcy is made use of when borrowers wish to "reorganize" their debts and go on to pay what is outstanding. Filing a Chapter 13 bankruptcy can permit borrowers to keep their real property. A Chapter 7 bankruptcy, entirely discharges any debt, borrowers may have accumulated under the mortgage. Certainly, there are serious consequences to filing bankruptcy, which includes severe damage to the borrower's credit rating. For homeowners considering this option, it is very important that they consult experienced professionals to determine if this is the best option.
A final alternative is to voluntarily deed the property to the lender by making use of a "deed in lieu of foreclosure" or "deed in lieu of forfeiture." This deal will appear on the borrower's credit report, and it may be difficult to negotiate with some lenders, depending on the Californian laws. If borrowers wish to opt for this, it is usually advisable to have a lawyer or an experienced credit counselor for assistance.
Foreclosures provides detailed information on Foreclosures, Bank Foreclosures, Foreclosure Listings, Foreclosure Homes and more. Foreclosures is affiliated with Stop Foreclosure Loans.
Source: www.a1articles.com
