Re-Defaulting / Re - Pre-Foreclosure - can you do it again?

Let's tear it apart and see what we get.  

•  Default mean you are late on your payments (over 30, 60, 90 or more days). This is the homeowner that is first underwater for at least 3-4 months with no mortgage payments on the loan (some homeowners are finding that they are getting more time than this).  Once the bank does file a Notice of Default on the property, the homeowner is in pre-foreclosure. 

•  Pre-Foreclosure is the process before foreclosure, it comes after defaulting. 

•  Re-Defaulting is when you got out of default by making an agreement with the bank to do a modified payment plan

•  So... Re-Pre-foreclosure is when the borrower cannot keep up the modified plan and went back into default and the bank was then forced to re-file a NOD.  It is when you do it again - right?

Pre-foreclosure (in California) timeframe is normally: 90 days plus 21 days and then the property is sold at the Trustee's Sale (at the county courthouse steps).  The sale is usually held at the courthouse's steps.

So lets break this 90+ 21 days down:  During the 90 days, the bank cannot come and take your home, but unfortunately they continue to call and call and become  your pen-pal with all the letters (some are certified, some just letters) - they just keep coming.  To some this become intimidating, to others it is an opportunity for the homeowner to contact the lender and try to get a workout plan set up.  The options you have or should have from the bank: (forbearance, loan modification, pay off the full balance and not refinance unless you have equity in your property). 

The +21 days: what this means is, in California the bank is mandated to post that the property is in default, and will be foreclosed upon on a certain date.  So they post this information in the local newspaper.  The trustee's sale date is set 21 days from the date of posting this news to the public.  Plus they put notices on your door and have been known to mail at least 6 copies of the certified notice to the property address.

On day 111 (from filing of NOD (Notice of Default) is the trustee sale.  On that date the sell of the property is held.  The banks usually find themselves purchasing the property back at this sale - unless an individual bid and win the bid on the property.

So what do you do at that point?  You can sit tight for a few more days, until you are served and your time run out.  It is so wise to move out prior to getting charged with an eviction on top of the fact that you just lost your home. 

A Re-defaulting /RE-Pre-Foreclosure homeowner is someone that received a workout plan from the bank a few months back and now finding they are not being able to keep the agreement.  The numbers are going up and up on borrowers that are re-defaulting and ending up in the modification system again and I call this Re-Pre-Foreclosure. "Unfortunately, people that can't live up to the promises they made originally when they were in a loan workout situation or simply that they were hoping things were going to get better and they did not. They then get back into the process and end up going to foreclosure".  

Of course to get a workout/loan modification program you will need to have a hardship that you can document.  There are several situations that qualify you for a hardship (loss of income is probably the largest reasons, but certainly not the only one).  Some will say that in this economy anyone can have a hardship! Not sure if you are in hardship?? Talk to your lender and give them the facts, they will let you know if you qualify for a hardship/loan modification.  Never give up, Never do nothing.

To answer the title question: 

ANSWER: Yes you can do it again.  Not sure how many chances you will get - do not push the button too many times and always check with your lender.  Keep up with the latest Programs and Plans - you may get another break!

** Check with your county clerk office on what the eviction process is and where you can go to get some help on your rights.  The courthouse usually does have an agency there that will tell you the process and help you understand your rights.

WEBSITE: http://www.motheranddaughterrealtyteam.com

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Take a look at Mother and Daughter Blog and D'Adrea's Mother and Daughter Blog  - for other tips for Sellers and Buyers. I work with my daughter as the Mother and Daughter Real Estate Team at Family Realty Group and we also focus in Short Sales and the Pre-Foreclosure process and REOs/Bank Owned Properties.  Our aggressive marketing plan includes on-line listing advertising. 

 

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If you are thinking of selling or buying a home in Northern California's Central Valley (San Joaquin, Alameda, Contra Costa and Stanislaus Counties - includes Stockton, Manteca, Tracy, Lathrop., Salida, Ripon, Modesto, Lodi, Hayward, Castro Valley, Union City, Fremont, Newark, Livermore, Pleasanton, Dublin and all surrounding cities). Call us at 866-750-8282 or email at US.