How to Possibly Avoid Foreclosure in Santa Barbara, California

How to Possibly Avoid Foreclosure in Santa Barbara, California

The Foreclosure Process in California

In Santa Barbara, California, foreclosure is a legal process through which an entity which has issued a mortgage takes possession and/or ownership of the property that secured the mortgage, because the person who took out the mortgage has consistently failed to make payments on it. The property in question is usually a house.

When consumers have to deal with foreclosure, it almost always involves a home. The bank will typically take possession of the house, and then sell it at auction, to try to cover the balance of the mortgage. Banks usually want sell the property quickly, for as much money as possible.

In California, and every other state, foreclosed homeowners can go through a “foreclosure by judicial sale.” In this type of foreclosure sale, a court supervises the sale, ensuring that the bank makes every reasonable effort to get the highest price possible for the house. The purpose of this is to maximize the chances that the bank gets, at the very least, the remaining balance of the mortgage. Although this may seem counter-intuitive, it is intended to protect the borrower: it helps prevent them from still owing money after the house is sold at auction.

Some states treat mortgages as “non-recourse loans.” A non-recourse loan is one that is secured by the borrower’s property, but for which the borrower is not personally liable. Basically, this means that a lender in a foreclosure can take the house that was mortgaged, but nothing else. If the house sells for less than the lender is owed, it cannot go after the borrower.

How to Possibly Avoid Foreclosure in Santa Barbara, California

First and foremost, you need to communicate with your lender, and not ignore the issue. Ignoring a problem with your mortgage will not make it go away, and can only make things worse. You should be honest with your lender, and stay in touch with them as much as possible.

Bear in mind that banks aren’t in the business of real estate speculation – they’re in the business of lending money, and making profits through interest on their loans. In short, the bank doesn’t really want your house – they’d much rather have you continue making your mortgage payments. For banks, foreclosing on a home is a last resort. Basically, nobody likes foreclosures, and everyone wants to avoid them.

If your financial situation suddenly changes, your lender may be willing to change the terms of your loan, at least temporarily, allowing for lower monthly payments. If this means that they will be able to get some money from you, with default as the alternative, it can become an attractive option for everyone involved.

As a last resort, some borrowers consider a “short sale.” In a short sale, the homeowner sells the house to the highest bidder, and uses the proceeds to pay off the remaining debt. If there is any extra from the sale, it goes to the borrower. If the sale price is worth less than what’s left of the mortgage in California, the remaining debt is discharged.

Life in Santa Barbara

Santa Barbara, California is a city in Santa Barbara County, where it also serves as the county seat. It currently has a population of about 88,000 people.

Santa Barbara, California is known for being host to one of the very few military engagements of World War II to occur on the continental United States. In 1942, a Japanese submarine surfaced off the coast of Santa Barbara, and fired several shots at the Ellwood oil refinery. There were no injuries. Although there was no evidence that collaboration or espionage by any U.S. residents played a role in the attack, the incident was used by the government to justify the internment of Japanese-Americans living on the West Coast, a decisions which is now remembered as one of the low points in America’s history.
After World War II, many of the servicemen who served in the war, and disembarked from Santa Barbara, California moved into the city permanently. This caused a population boom. Many of these servicemen went on to college, and became successful professionals in Santa Barbara, California, some of them lawyers.
If you live in Santa Barbara, California and are in need of an attorney, it’s very likely that there’s a Santa Barbara, California attorney who can provide assistance.

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Barbara Reaume

Barbara Reaume is a real estate expert working for Coldwell Banker Montecito. She started her career as a real estate agent in 1984 and offers over 3 decades of experience in real estate sales. Specialties include Montecito real estate, Santa Barbara real estate, Santa Barbara homes, real estate financing In Santa Barbara, Montecito relocation, Santa Barbara relocation, short sales and foreclosures. Do you have specific questions about buying or selling real estate in the Santa Barbara area? Ask to be setup on Barbara's email-based home search to get instant alerts on price reductions and new Santa Barbara homes for sale in the area. Contact Barbara Reaume by email ([email protected]), phone (805-610-5403) to find out the value of your home, discuss your options. Connect on Google+ https://plus.google.com/103753350598984606081/about

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