Notice of Sale
FOR SALE: If you did not make up payments, the lender will next record a Notice of Sale. This notice will include the time, place, and date your home will be sold. It must be mailed to you at least 20 days before the date of sale.
IT’S NOT TOO LATE: Even at this stage of the foreclosure process, you have options.
- You can pay the amount due plus any fees up to 15 days before the date of sale.
- If you wait until the last 5 days before the sale, your lender can require you to pay the entire loan amount.
Short Sale is another option
A short sale occurs when a lender allows a home to be sold for less than the total amount due. Banks often forgive the rest of the debt.
A recent report in The Wall Street Journal stated that Bank of America has seen the number of short sales increase 25% since last year.
A short sale allows homeowners to keep a foreclosure off their credit report.
However, there can be significant tax issues with short sales. Consult an attorney if you are considering a short sale.
GET ADVICE: As soon as possible, talk to an attorney or a HUD counselor at (800) 569-4287. Some HUD counselors also are familiar with bankruptcy. Arrangements can still be made to keep your home. You can find an attorney by calling the Los Angeles County Bar Association at (213) 243-1525
WE CAN HELP: Our counselors are available to answer your questions. To contact a DCA real estate representative, call (800) 973-3370.
CANCELLED: If you pay what’s owed, the lender must file a Notice of Rescission. This proves the sale has been cancelled. Once this is filed, if you fall behind again, the lender must start the process again.
BEWARE OF SCAMS: Thieves look for desperate homeowners. They may claim a transfer to them will stop the sale. They may claim that it will save your credit. What it usually means is they will charge you a fee (maybe thousands of dollars), take title to your home, collect rent from you for a month or more, and not pay your lender. After the sale, if there is any equity left, it will go to them as titleholder and not you.
AFTER SALE: You still have rights if your home is sold in a foreclosure sale.