What is Foreclosure in San Luis Obispo, California?
Foreclosure is the legal procedure by which the lender in a mortgage arrangement takes possession of the property (typically a house) that secured the loan. This is done when the San Luis Obispo, California debtor has repeatedly failed to make their payments. Foreclosure often requires the house to be sold at auction. Often, banks want to get rid of the property as soon as they can, in order to make as much money as possible, and move forward.
In all states in the U.S., including California, foreclosure by judicial sale is allowed. Under this system, the sale is overseen by a court of law, to ensure that the bank makes a good effort to get a reasonable price at the auction, and that any proceeds above the balance of the mortgage go back to the borrower. In some states, original mortgages are treated as "non-recourse" loans, meaning that, at most, the lender can take possession of the house in the event of foreclosure, even if it is worth less than the amount due. The bank cannot go after the borrower for the remaining balance once it sells the house. You should consult a attorney in San Luis Obispo, California to find out if this is the case here. This typically does not apply if the mortgage has been refinanced.
How Can I Avoid Foreclosure in California?
Most importantly, you must not dismiss the problem. Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be forthright with them. One should remember that banks usually don't want to take your house in San Luis Obispo. They issued your mortgage expecting to earn a profit on the interest. Taking possession of, and selling, your house is a last resort for them. Therefore, if you are forthright with them about your financial situation, they are likely to make reasonable accommodations to keep you from defaulting.
If you can't work things out with your lender, there are other avenues. You can try a "short sale," which is when you sell your house for whatever amount you can get for it, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank still receives those proceeds, but the remainder of the loan will be forgiven. You may also try a "short refinance" which allows a piece of the debt to be forgiven, and the rest refinanced. This allows the bank to wash its hands of the matter, while taking a comparatively small loss, and allows the homeowner to keep their home.
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How Can A San Luis Obispo, California Attorney Help?
If you are facing the possibility of foreclosure, a good San Luis Obispo, California real estate lawyer can help. At the very least, they will be able to inform you of your legal options.
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Life in San Luis ObispoSan Luis Obispo, California is a city in San Luis Obispo County. It is the county seat of, and largest city in, San Luis Obispo County. It has a population of about 42,000, as of a 2006 estimate by the U.S. Census Bureau. It is located on California's central coast, almost exactly midway between San Francisco and Los Angeles.
San Luis Obispo is home to the California Polytechnic University at San Luis Obispo, which is commonly referred to as "Cal Poly" or "Cal Poly SLO." Many of its degree programs, particularly argiculture, engineering, and architecture, are consistently ranked among the best in the United States.
Thanks to the presence of a large, nationally-renowned university, San Luis Obispo definitely has a "college town" feel to it. And its proximity to the ocean, and the mountains further inland, provide a wealth of outdoor recreational activities. The Diablo Canyon nuclear power plant is located on the outskirts of San Luis Obispo provides most of the electric power for the area, and is also a major employer for professionals in a wide range of fields, particularly engineers. This power plant creates several thousand well-paying jobs, and is crucial to the local economy.
If you live in San Luis Obispo, California and need an attorney, you should be able to find one. There's almost certainly a San Luis Obispo, California lawyer who can help you with whatever legal issue you might have.