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Homeowners who are currently going through a foreclosure and find themselves in a state of confusion or frustration, should know that this doesn’t have to be the end. These homeowners should have some kind of hope in knowing there may be other resolutions out there. Such foreclosure relief options may be available to your unique foreclosure situation. Fortunately, California allows various pathways when attempting to achieve foreclosure relief.
Simply put, the right of redemption is your right to redeem, or “buy back,” your property one year after your home was sold in a foreclosure auction. This one-year allowance gives these homeowners some time to reevaluate their intention with the property, as well as give them to get their finances in order. Within a yea of the property’s auction sale, the owner may be able to buy back their property – all dependent on their financial status at the time. Typically, this initial process can end up being more costly, rare, as well as time-consuming when being compared to a common judicial or non-judicial foreclosure. Another option is for a borrower to fulfill any debt for up to 90 days after the recording of a “Notice of Default” on the failing property.
Redeeming your potentially foreclosed property depends on two very important factors – whether your foreclosure is Judicial or Non-Judicial:
For any homeowners who want to find out what specific kind of foreclosure their property is in, they may refer to sources like Zillow or their local newspaper for more information.
If your home was foreclosed upon by the HOA, you may still be able to redeem your property. This specific right of redemption allows for a 90-day redemption allowance after the foreclosure sale. This type of foreclosure is typically due to the homeowner failing in dutifully paying for their HOA fees. Typically, homeowners who are attempting redemption from this HOA foreclosure must successfully fulfill the total assessment lien amount, interest and attorneys’ fees and costs. In addition, California law requires additional payment of any repair costs that were made by the foreclosure purchasers. This is to preserve the status of the home. This is the only exception for redemption of a non-judicial foreclosure.
For those homeowners who are looking to redeem their property after its foreclosure sale, they must first fulfill certain fees such as:
Reasons like those stated above, all contribute to reasons why this type of home redemption is considered “rare” in California. If a homeowner was in debt trying to fulfill the home in the first place, it may be questionable as to why the individual would attempt to regain the home again and for much more than it was once initially worth.
If the home is occupied with owners who purchased the property in the initial foreclosure sale, these owners will receive a notice stating you are attempting to redeem the property back into your ownership. During this time, the current owners will request a redemption amount from you. If the owners nor previous owners can agree on a redemption price, the court will make this executive decision as to what would be an appropriate amount. Once fulfilled, a levying officer may deliver the payment promptly to the current owners.
If there was no deficiency judgement to pay off the loan at the foreclosure sale, the redemption period may be set for 3 months. However, if a deficiency was in fact recorded, the borrower is given up to one year to pay off the deficiency to the lender, as well as redeeming the property from the new and current owner.
If you are a homeowner who is currently going through a foreclosure, rest assured there may be resolutions out there for your unique situation. Keep in mind that you don't have to go through this alone. Instead, consider supplying trusted legal support from our trusted legal team. For any questions, comments, or concerns you may have, please contact our firm immediately - we're here to help.
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— Michael Avanesian, Esq.
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