Foreclosure Bailout Loan in Southern California

Take action with a foreclosure bailout loan from Arbor Home Loans now! This home loan is based on the equity in the property. It is offered as a 1st, 2nd, or even a 3rd trust deed for single family (SFR), 1-4 Unit properties, commercial for both owner occupied, and non-owner occupied.

The Clock Is Ticking

You must act fast or the property will sell at auction to the highest bidder. This leaves hundreds of thousands and in some cases millions of dollars on the table for someone else. Foreclosure bailout loans bring the loan or loans in default current, stops the sale, and protects the equity in the home. You retain the property, keep the equity, reap the benefits of future property appreciation, and avoid the credit and financial consequences of bankruptcy.

Arbor Home Loan provides 1st, 2nd, and in some cases 3rd trust deeds to refinance the entire balance of the existing loan or make loans in an amount that’s sufficient to reinstate the defaulted loan. These loans are strictly collateral based, have a higher rate of interest, higher fees and are characterized by quick closings with a 1 year, 2 years, or 3-year repayment period.

When you are facing foreclosure, you have just three options to keep your home.

First Option

You could pay the entire past due balance, which is often impossible given the fees, interest, and penalties; and even then, the lender may proceed with the foreclosure.

Second Option

You could sale the home and take the equity that is left. This assumes the lender cooperates with an extension long enough to find a buyer and close escrow. Arbor Home Loans can facilitate the sale of your home if this is a better option.

Third Option (Our Specialty!)

You keep the property with a foreclosure bailout loan. This emergency bridge loan allows you to keep the property, re-establish your credit, and benefit from future equity gains.

Foreclosure Bailout Loan Bottomline

Higher interest rates and loan fees when compared to conventional financing.

Missed payments on previous loans and credit history are overlooked.

Higher debt to income ratio limits allowed.

Ability to qualify without tax returns, W2’s, or bank statements.

Have a bankruptcy or in bankruptcy, there is NO problem.

Foreclosure bailout loans are strictly collateral based.

Up to 70% combined loan to value (CLTV).

Considers compensating factors to make a lending commitment.

No credit score requirements.

Appraisal And Title Work

Appraisal:

This is a professional evaluation of the property’s current value done by a licensed appraiser. The appraiser will examine factors such as the condition of the property, rent estimates, recent comparable sales in the area, and any unique characteristics that could affect its value.

Title Search:

This is performed to uncover any liens or claims on the property. This ensures that there are no uncovered issues or claims that could affect the lender’s stake in the property.

Eligibility for a foreclosure bailout loan varies depending on the program. However, homeowners need to demonstrate an ability to repay, not exceed maximum debt to income ratios, and have enough equity available.

The benefits of foreclosure bailout loans include avoiding foreclosure and saving your home, and financial relief during a difficult time. You can avoid bankruptcy with an opportunity to rebuild and re-establish your credit for future conventional financing. The drawback is the possibility of accumulating more debt and ultimately losing the home to foreclosure if you fail to keep up with the loan payments. Contact Arbor Home Loans with an inquiry or a phone call to see if the foreclosure bailout loan is right for you.

California Foreclosure Laws And Process

Timeframe

Statutory: 120 days
First Action

If Owner Occupied 1-4 Unit 1st Trust Deed, Borrower may qualify to receive pre-foreclosure information with options to avoid foreclosure. 30 day wait from contact to recording of NOD
First Legal Action

Notice of Default is recorded.
Notice of Sale

3 months after the NOD is recorded, Notice of Trustee Sale recorded. Notice mailed to all recipients of NOD, posted in a public location and on the property 20 days prior to the sale date.
Publication

Publishing a copy of the notice of sale three times, once each week for three consecutive weeks, in an adjudicated newspaper of general circulation in the county where the property is situated.
Reinstatement

Borrower or Junior Lien holder has a right to reinstate by paying the arrearage, costs and fees. This right expires 5 days prior to the date of the foreclosure sale.
Postponements

A Trustee may postpone a sale for up to one year from the original sale date. After the 1 year, the trustee must record, mail, post, and publish a new notice of sale.
Possession

After the Trustees Deed Upon Sale has been recorded. If tenant occupied, the “Federal Protecting Tenants at Foreclosure Act” applies, providing a 90 day notice period (Leases entered into before foreclosure action must be honored).
Redemption Rights

Non-Judicial: Borrower has no right to redeem the property after the sale. If an HOA foreclosure, Borrower and any Junior Lenders have a 90 day right of redemption. Judicial: The borrower has from three months to one year, depending on the circumstances.
Deficiency Judgment

Non-Judicial: Not available on Non-Judicial foreclosure. Judicial: Lenders have from three (3) months to 1 year after the sale to try and obtain a deficiency judgment, depending on loan and lender type.
Non-Judicial Laws

Read more here.

California allows both non-judicial and judicial real property foreclosures; non-judicial foreclosures are far more common.

This brief summary of the foreclosure laws in the state of California is for informational purposes only and should only be used for that purpose. Please refer to the state website for a complete description of all laws pertaining to foreclosure.

How Arbor Home Loans Can Help as Foreclosure Bailout Lenders

At Arbor Home Loans, we understand the emotional and financial stress that comes with facing foreclosure. Our dedicated team is here to help you navigate through these challenging times with expert guidance and customized solutions. As foreclosure bailout lenders, we offer tailored programs to assist homeowners in saving their homes and avoiding foreclosure.

Here’s how we can help:

1. Fast and Flexible Financing Solutions We specialize in quick and flexible loan solutions designed to stop the foreclosure process in its tracks. Our foreclosure bailout loans can provide immediate financial relief, helping you bring your mortgage current and regain control of your financial future. Our streamlined approval process ensures you get the funds you need without unnecessary delays.
2. Customizable Loan Terms We work with homeowners to develop personalized loan terms that meet their specific needs. Whether you’re looking for short-term assistance to get back on track or need a longer-term refinancing solution, our team is committed to finding the best option for your situation.
3. Expert Guidance Every Step of the Way At Arbor Home Loans, we believe in supporting you beyond just lending. Our experienced loan officers will walk you through every step of the process, ensuring you understand all your options and make informed decisions. We’ll help you explore all available avenues, from loan modifications to refinancing, and help you select the path that’s right for you.

Contact Arbor Home Loans Today

Securing a foreclosure bailout loan can be a game-changer for homeowners at risk of losing their homes. By taking a close look at your finances, exploring different loan options, and working closely with our team, you can find a path to keep your home and get back on solid financial ground. The key is to act quickly, be thorough in your preparations, and stay committed to your long-term financial health.

Interested in exploring your options? Get in touch today with our friendly team of mortgage professionals at Arbor Home Loans. With the right approach and support, we can help you turn a challenging situation into an opportunity for a brighter financial future.

FAQs

What type of loan is most effective for preventing foreclosure?

A foreclosure bailout loan is highly recommended for homeowners struggling to avoid foreclosure. This type of loan serves as a refinancing option, but it’s important to note that traditional financial institutions like banks do not offer these loans under foreclosure conditions.

Can you explain what a foreclosure bailout loan is?

Foreclosure bailout loans are a type of mortgage designed to prevent the loss of a property by refinancing the debt of homeowners facing imminent foreclosure. This loan is usually sought in urgent situations to alleviate the immediate financial burden and avoid losing the home.

Is it possible to refinance my house to prevent foreclosure?

Yes, refinancing your home can be a viable strategy to prevent foreclosure. Lowering your monthly mortgage payments through refinancing can reduce financial stress. However, it’s crucial to begin the refinancing process before your payments fall behind to maintain eligibility and protect your financial interests.

What can be done to temporarily halt a foreclosure?

You will need to consult with an attorney, however past clients were able to temporarily stop a foreclosure by filing for Chapter 7 bankruptcy. This can introduce an automatic stay, which is a legal order that halts all collection activities, including foreclosure. However, this is only a temporary solution and the foreclosure process may resume once the bankruptcy case is processed. There are different bankruptcy options, we advise you to consult with an attorney.

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