SB1137 and Avoiding Foreclosure
Home Retention Programs - Programs that may be
available to qualified borrowers with lenders' approval.
Options that may be available to
borrowers who are unable to afford their mortgage payments and who wish to
avoid foreclosure, and instructions on how to explore those options:
At this point, if your loan has not
matured, you may bring your loan current if you have the ability to do
The U.S. Department of Housing and
Urban Development (HUD) funds free or very low cost housing counseling
nationwide. Housing counselors can help you understand the law and your
options, organize your finances and represent you in negotiations with
your lender if you need this assistance. Find a HUD-approved housing
counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
You may find other alternatives on
the HUD website including articles on “Tips for Avoiding Foreclosure”
by going to the following web site at
[Refinance] Depending on your
financial situation, you may be able to refinance your loan with your
lender or with another lender. At this time, there is no guaranty that
you will qualify for a refinance, so you should consider all of your
options even if you decide to try to refinance.
[Pre-foreclosure sale of property]
If you cannot refinance your property, you may be able to sell it before
it is foreclosed. However, time is important so you may want to
investigate this option and other options right away.
Depending on your financial
situation, and subject to the lender’s policies and agreement, you may
be able to arrange for the following in order to avoid or delay the
foreclosure of your property:
A forbearance agreement or
workout agreement where the lender and the borrower agree, in
writing, that the lender will defer foreclosing so long as the
borrower does certain things including, but not limited to, making
agreed upon post-default payments;
A loan modification –
where the lender and borrower agree, in writing, to modify the terms
of your loan;
If you have not been able to sell
your property and have no lien junior to your lender’s deed of trust,
your lender may accept a deed-in-lieu of foreclosure in
satisfaction of the amount of your loan.
Where the current fair market
value of your property is less than the amount you owe on your loan,
the lender may agree to a short sale allowing your property to
be sold for less than the amount of the loan balance.
The borrowers should collect and
be prepared to present financial documents to the beneficiary or
authorized agent when discussing options for avoiding foreclosure:
Mortgage or Loan Statements from all Senior or Junior
Latest payment notification.
Letters from the loan servicer.
Personal information list including names of
qualified borrowers, property and residence addresses, social security
numbers, contact phone numbers, employers with addresses and phone
Pay Stubs from all qualified borrowers for two
Bank Statements from all qualified borrowers for two
Note: If borrower is represented by
an Agent or Representative, then borrower needs to complete the Agent
Authorization Form. Please contact us to obtain this form.
For borrowers who wish to discuss
options for avoiding foreclosure with their mortgagee, beneficiary, or
authorized agent, call (619) 846-1550. Business hours are 10 a.m. to 5
p.m. PST, Monday through Friday.
Please be advised that we are
attempting to collect a debt and any information obtained will be used for
Rosenthal Fair Debt Collection Practices Act and the federal Fair Debt
Collection Practices Act require that, except under unusual circumstances,
collectors may not contact you before 8 a.m. or after 9 p.m. They may not
harass you by using threats of violence or arrest or by using obscene
language. Collectors may not use false or misleading statements or call
you at work if they know or have reason to know that you may not receive
personal calls at work. For the most part, collectors may not tell another
person, other than your attorney or spouse, about your debt. Collectors
may contact another person to confirm your location or enforce a judgment.
For more information about debt collection activities, you may contact the
Federal Trade Commission at 1-877-FTC-HELP or www.ftc.gov.
Toll free number made available by
the United States Department of Housing and Urban Development (HUD) to
find a HUD certified housing counseling agency is 1-800-569-4287 or TTY/TDD
1-800-877-8339. You may find other useful consumer information on
foreclosure alternatives on the HUD website at
http://www.hud.gov/foreclosure/ including an article on “Tips for
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