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(925) 240-3096
Give Us A Call:
(925) 240-3096
(925) 240-3096
Foreclosure occurs when a homeowner fails to keep up with their mortgage payments, resulting in the lender taking possession of the mortgaged property. In order to recover the outstanding balance on the amount borrowed, the lender will force the sale of the house which was used as collateral for the loan. In this article, we will look at how the foreclosure process works in California.
There are two types of foreclosure process that a lender may use for homes in California: judicial and nonjudicial.
Judicial: Judicial foreclosure is a court-ordered process that involves the lender filing a lawsuit requesting foreclosure on a property. It is used when the mortgage or deed of trust does not contain a power-of-sale clause. Judicial foreclosure is not common in California as it is more costly than nonjudicial foreclosure.
The borrower can choose to defend the lawsuit, in which case the court will undertake a review of the facts and make a judgment in favor of one of the parties. If the borrower loses, an order will be made to sell the Californian home at auction. If a house is sold via judicial foreclosure, the borrower will be liable for making up the difference between how much they owe and how much the house sells for at auction.
This type of foreclosure also offers the “right of redemption” which enables the borrower to repurchase their home at auction from the person who bought it. However, in practice, this is rare.
Nonjudicial: This process does not involve the courts and can be used when the deed of trust or mortgage loan contains a power-of-sale clause giving the lender the right to sell the house to pay off the outstanding balance on the loan in the event that the borrower defaults on their mortgage payments. Under this route, the borrower is not liable to make up the difference once the property is sold. Most lenders choose the nonjudicial process as it is faster and cheaper than taking the matter to court.
Borrowers are given up to five days to cure the default and stop the foreclosure process in which case the loan is referred to as being “reinstated”.
With the information in this article, you now have a better understanding of your rights as a homeowner.
The COVID-19 pandemic caused financial strain for many Californian homeowners, making it difficult for them to pay their mortgage costs each month. As a result of the crisis, the Coronavirus Aid, Relief, and Economic Security (CARES) Act made provision for a foreclosure moratorium, which gave mortgage holders the ability to temporarily suspend their payments for a period of time during which no foreclosures could occur. The rationale behind this was to avert the possibility of widespread default by borrowers on their mortgages.
Although the foreclosure moratorium ended on July 31, 2021, banks can still agree to a mortgage forbearance where they allow borrowers to pause their mortgage payments or pay a reduced amount for a set period of time. This service is discretionary, and will not erase the amount that is owed as any missed payments will still have to be repaid in the future. In this article, we will look further into the options that are available to homeowners in California.
The California Mortgage Relief Program is a federal government funded program that allocates $1 billion towards mortgage relief as part of the 2021 American Rescue Plan. The program was established to offer relief to borrowers who are in arrears on their mortgage payments as a result of pandemic-related financial hardship.
Through the California mortgage relief program, California homeowners that are struggling to keep up with their housing payments during the COVID-19 pandemic may qualify for relief on their mortgage without having to pay back the funds.
The program provides for past due mortgage payments to be fully paid, with each household receiving cover of up to $80,000.
In order to qualify for a one-time grant, California homeowners must meet all of the following requirements:
• You occupy and own only one property in California, and it is your home and primary residence
• Your property is a single-family house, condo or manufactured home that is permanently affixed
• You suffered financial hardship due to COVID-19 after January 21, 2020
• You are in arrears on at least two mortgage payments as of December 27, 2021
• Your household income is the same as or under the area median income in your country
• Your original mortgage loan was not greater than the “conforming loan limit”
In addition to these criteria you must also meet at least one of the following conditions:
• You receive some form of public assistance such as welfare or food stamps; or
• You are “severely housing burdened”, meaning your mortgage costs take up more than 40% of your income
• You have been denied an “alternative workout option” by your mortgage lender
The California Mortgage Relief Program is available to homeowners even if they have previously received financial assistance from the government. For example, under the CARES Act, the American Rescue Plan or other COVID-related programs
You can check your eligibility to apply for the California Mortgage Relief Program at camortgagerelief.org
As there is no set date for the program to end, funds will be deployed until they have been fully allocated. This is predicted to be by 2025. Submitting your application as soon as possible will ensure it is reviewed and approved faster allowing you to receive your funds sooner.
With the information in this article, you may be able to receive the financial support you need at this time.
If you're contemplating selling a home without a realtor, you need to know what paperwork you'll need to close the sale. While it's not an easy task to complete, especially when you don't have real estate experience, it can save you a great deal of money.
There’s a good chance that you bought the house you intend to sell, and you likely have the sales contract. The sales contract is the agreement between you and the previous owner of your home, and it stipulates the purchase terms.
The original sales contract informs prospective buyers about the previous owner of the house. It denotes the explicit terms and conditions when the seller transferred the property. It also shows the price and any disclosures about the state of the property before you bought it. While it's not a hard requirement, most buyers often request to see it.
If you decide to sell your house before you clear the current mortgage, it helps to contact the lender and request a mortgage statement. This document denotes the payoff amount, which is often the money you need to pay to meet the mortgage terms, and it includes all the interests you owe.
While you can request this document before listing the home, you need to ask for an updated version right before closing.
It's always a good idea to furnish the buyer with your homeowners' insurance details. Besides helping them understand the property's claim history, the document enables the buyer to estimate the cost of insurance.
While requirements vary by state, it's good to have the following documents:
· Professional appraisal
· Home repair records
· HOA documents
· Preliminary title report
· Pre-inspection report
· Deed
· Tax forms
The most significant benefit of selling a house without a realtor is that you don't have to pay their commission. Ideally, most realtors ask for 6% of your home's sale price. The amount is split equally between the seller's agent and the buyer's agent, but when you eliminate a realtor from the sale process, you won't pay the 3% for the listing agent.
While this percentage may seem small, it can translate to massive amounts of money. For instance, if you sell a house for $400,000, you can save $12,000 by avoiding a realtor.
Selling a house without a realtor helps you ensure total control of the sale process. When you're in charge, you are at liberty to decide how to price, stage, market, and negotiate the sale. Your success depends on your level of knowledge in the real estate industry, but even when you're a newcomer, there are plenty of resources to guide you.
Selling your home without a realtor can be a great way of maximizing profits. However, it's prudent to prepare early and be ready to do all the hard work to make the sale successful. If you need help with selling your house, reach out to a reputable company and make the process easier.
Lead-based paint can pose some serious risks to homeowners. Most importantly, you need to understand the federal regulations regarding the hazardous substance in the home selling process. While the use of lead-based paint was discontinued in 1978, homes built before this year often have Lead paint.
Like other biohazards, lead paint can complicate the selling process. Here's what you need to know about selling a house with lead paint.
Lead is a highly toxic element that causes long-term damage to the brain and kidneys. Almost every bone in your body can absorb lead and release it in the body as you age.
The substance is more harmful to children of six years and younger. Unlike in adults, lower doses tend to affect children strongly and cause damage to the nervous system and vital organs. This is because the bodily systems are not fully developed. In addition, children are more likely to ingest the paint as they play and explore. As lead gets disturbed, it can turn into dust and enter the body through the respiratory system.
Statistics from the Department of Housing and Urban Development show that at least 35% of homes in the U.S. contain lead-based paint. However, the substance is primarily found in homes built before 1978.
When you're selling a house built before 1978, Federal law requires that you disclose any knowledge about lead paint in the house.
The seller should also provide an EPA-approved pamphlet informing the buyer more about lead. It helps the buyer understand the different methods of detecting lead paint in a home and preventive measures.Failure to disclose information about lead paint puts the buyer at risk. And you risk legal suits if a child suffers from lead poisoning. You could also face federal penalties and fines of $10,000 or more.
You can take two approaches to sell a house with lead paint. The first method would be selling the home as-is without making any repairs. This option can save you lots of time and money needed for the renovations. The second option is to fix the Lead issue plus other necessary repairs and stage the home for sale.
The two options involve very distinct strategies, and depending on your situation, one method may be better than the other.
In some cases, lead paint can impact the value of a home. If the seller knows the existence of lead paint in the home, it can affect its value. That's because buyers know they'll have to incur the cost of repainting the house.
Besides the repainting cost, buyers also consider the extra expenses of remodeling an outdated house. Most importantly, lead paint tends to be a dangerous health hazard during renovations because it can turn into dust. As a result, the buyer has to look for an EPA-approved contractor.
Selling a house with lead paint is more complicated than selling an ordinary home. Removing the biohazard can be expensive and complicated. If you don't want to go through the hassles of lead testing and disclosure, you can sell the house directly to an experienced and reliable house buying company.
In many places across the world, the real estate market has been advantageous to sellers. Prices have risen across numerous regions, and selling a home has been an excellent way to generate additional income.
For many homeowners, selling a house at the right time can be extremely beneficial for maximizing the amount of money that is able to be earned in this process. In this article, we will discuss the different factors that create an optimal time to sell your property.
No matter the situation, there are a few things to remember when selling a home. First, flexibility is always awarded in the process. If you are willing to negotiate with buyers to come up with a desired move out date, selling price, and closing cost agreement, that will be awarded.
Secondly, it is critical that you complete adequate research before putting your house on the market. Knowing how your neighborhood, school district, and other factors can affect selling a house will increase the odds that you are able to achieve the desired price for your property.
Lastly, working with a real estate agent is often the best way to move forward. Although there may be additional fees associated with this partnership, they can help you get the best cost for your space while understanding the market trends.
If your home is in good condition and located in a growing city, your chances of making a profit are high. When you own a home in a location where houses are in high demand, you will be able to gain a competitive advantage over other sellers based on the perfection of your location.
Selling when your home is located in a desirable neighborhood for buyers is essential to selling the property quickly and at a good price. In order to do this effectively, it may be necessary to research the trends of homes in your market.
Typically, the summer and the beginning of the year are the most popular times for people to put their home on the market. You may be at an advantage if you list your home at a different time of year when there is less supply available to buyers.
If your property is in decent condition in a trustworthy part of town, it is important to look at the changes that you can make that will increase the value of your space. Some of the changes recommended may be minor while others are major. For instance, selling your house without updating the kitchen may cause potential buyers to hesitate. Updating or even just painting your laundry room may be all that is necessary in order to get the selling process started quickly.
If your home does not have many selling points, it might be better to put it on the market at an alternative time of year. Typically, selling homes that need work is easiest in the fall and winter months. During these times of year, you may attract buyers that want to invest in a fixer upper.
Unfortunately, many sellers who are listing a home in poor condition have external reasons why they need to get out of the home quickly. If this is the case, the best option is to work with a real estate investment group. Proud Start is able to get your home off your hands quickly, offers cash payments and accepts homes in any condition. If you need to move quickly on a house in poor condition, working with this type of buying group may be your best bet.
Selling your home at the perfect time can increase your selling price and the speed with which you are able to sell your property. This precise timing requires research into local trends. Once you determine this timing, you can take the steps necessary to optimize the home buying process.
When preparing to sell a home, many individuals do not consider the capital gains tax that is associated with this process. When selling at a profit, the amount of money earned is taxed. If selling your home, you will most likely want to understand the capital gains tax rates and how they apply to selling real estate in California. In doing so, you can gain a better understanding of whether selling your home makes financial sense.
In the real estate market, when you sell a home, capital gains is the term for the additional money made after selling that is taxed. This tax is computed by taking the selling price of your home and subtracting any costs incurred in the selling process. The adjusted basis is essentially how much you originally paid for the property and includes factors such as legal fees, title transfers, and a few more minor nuances.
Typically, most mortgage lenders keep a certain percentage of money in escrow so that you are prepared to pay these fees when the time comes. If you are considering listing your home on the market, you should contact your mortgage lender and ask how much money is in escrow compared to the price that you will owe. If you have structured your mortgage appropriately, then it is possible that much of this money is accrued.
The capital gains tax rates for selling real estate in California are similar to selling other types of property. When your house is put under contract, capital gains tax rates apply and this means that you will pay taxes on the amount earned after selling.
The capital gain rates vary between different buyers. If the house has been owned for less than a year, there will be a 15% capital gains tax applied. If the home was owned for a period of time greater than one year, the rates would be 20%. These numbers have the ability to fluctuate slightly based on income.
If you are looking to sell your home quickly, one of your best options will be looking into a home buying group like Proud State Home Buyers. Since many homeowners are in a tight financial situation due to capital gains taxes, it is likely that they do not have the ability to contribute to additional upgrades that are needed to get the house in selling condition.
If this is the case for you, consider working with a home investment group. Proud Start Home Buyers will help you get cash in hand fast so that you have the financial assets you need to relocate.
If selling your home, you will need to determine if this decision makes financial sense and if you can expect to net positive on any income. When selling your home, you should contact your mortgage lender and ask how much money is in escrow compared to the price that you will owe.
Fill out our form to get started. There is absolutely no obligation. We buy houses for cash so that you can sell your house in the easiest, most hassle-free way possible.