Home foreclosures are the worst, especially for hard-working people who have got to the point that they cannot manage their finances. Mortgage payments are designed to be easy to administer but once a person’s source of income gets interrupted in one way or another, keeping up with it becomes a burden that is very hard to manage. In this post, we take a look at the foreclosure laws in California to give an idea of the options that are available to a person with a home foreclosure. We decided to take California as our case study; other states offer the same options too.
Ways to handle a home foreclosure
Yes, when your house goes into foreclosure, you can decide to sell it. According to the law, this is a viable option and a smart one. If you make the effort of searching and inquiring from friends and family, you can be sure to find a reputable company to buy your home at an affordable price. In some cases, you can even get a fortune from selling, especially if your house is located in urban or rapidly developing places; like cities and town centers. While looking for a reasonable offer, it is important to watch out for scammers who are just looking to take advantage of the situation.
By a long shot, mortgage modifications are possible. By talking to the housing department, you will be able to find out if you qualify for your mortgage to be modified. This typically happens when there is proof of wrongdoing from the mortgage company. If they did something illegal or breaks the contract, then you can be sure that the government to have your back. It is unfair for a law abiding citizen to suffer for mistakes that they did not do. This applies to all the states, not just California.
Declare yourself bankrupt
If you are falling behind with your payments, then it is a clear indication that you are bankrupt, or going to be soon. It is, therefore, important that you sign up for bankruptcy. It does come with some shaming, depending with your peers, but any realistic person knows that this is the right thing to do. Filing for bankruptcy will allow for you to easily manage your payments in a manner that you can manage even with the little income. Failing to honor the terms of the bankruptcy will only delay the foreclosure, therefore, make sure to go down this road with the utmost care.