The following chart is a short-cut to understanding the options for a distressed California property owner. To read the chart, the property owner should identify on the far left column the type of property and loans secured by the property. After the type of property has been identified, the chart gives the owner options on the right. A detailed explanation of the options for each type of property and loan structure is included in Howard L. Hibbard’s book, How to Avoid Foreclosure in California, 2012 Edition. If you are a distressed property owner needing assistance, contact the Law Office of Howard L. Hibbard for a free consultation.
DISCLAIMERS
1) This Distressed Property Homeowners Options Chart gives general guidelines for distressed property owners. Owners should consult legal counsel prior to taking any course of action based on any option listed … more
|
Type of Property* *Explanation for each type of property is listed in booklet How to Stop Foreclosure: Quick Easy Guide. |
Loan Modification |
Short Sale |
Foreclosure Relief |
Live Off Equity |
Deficiency Liability |
1099 A or C Liability |
Deed in Lieu option |
|
1. Single Family Dwelling, Owner Occupied, |
Yes |
Yes |
Yes |
Yes, until 12.30.2012 Mortgage Relief Act expires |
None, until 12.30.2012 Mortgage Relief Act expires |
None, until 12.30.2012 Mortgage Relief Act expires |
Yes |
|
2. Single Family Dwelling, Purchase Money First and Second Loan |
Yes |
Yes |
Yes |
Yes, until 12.30.2012 Mortgage Relief Act expires |
Yes, until 12.30.2012 Mortgage Relief Act expires |
No, until 12.30.2012 Mortgage Relief Act expires |
Yes |
|
3. Single Family Dwelling, Purchase Money First and Second Loan (Line of Credit) Obtained at Purchase of Home |
Yes |
Yes |
Yes |
Yes, but use Deed in Lieu before foreclosure |
Yes, if First Loan Forecloses |
Yes, for Second Loan Amount |
Yes |
|
4. Single Family Dwelling, First and/or Second Loans Refinanced |
Yes |
Yes |
Yes |
Yes, but use Deed in Lieu before Foreclosure |
Yes, for Second Loan if First Loan uses Non-Judicial Foreclosure |
Yes |
Yes |
|
5. Single Family Dwelling, Not Primary Residence, 2nd Home or Vacation |
Yes, Some Banks which do not require owner occupied |
Yes, Some Banks which do not require owner occupied |
Yes, Some Banks which do not require owner occupied |
Not |
Yes |
Yes |
Yes
|
|
6. Residential Property 4 Units or Less, Owner Occupied, Purchase Money Loans |
Yes if Owner Occupied, Yes, Some Banks which do not require owner occupied |
Yes, Some Banks which do not require owner occupied |
Yes, Some Banks which do not require owner occupied |
Yes, if Owner Occupied |
No, if Owner Occupied |
No, if Owner Occupied |
Yes |
|
7. Commercial Residential |
No |
No |
No |
Not Applicable |
Yes |
Yes |
Yes |
|
8. Commercial Business |
No |
No |
No |
Not Applicable |
Yes |
Yes |
Yes |
|
Copyright © November 23, 2011 • Law Office of Howard L. Hibbard • www.HLHibbardAttorney.com |
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Disclaimers (continued)
… in the chart as there are many twists and turns dependent upon the exact circumstances of each homeowner. 2) This chart does not apply to loans where any type of fraud occurred in obtaining the loan such as “stated income” which is not accurate to owners actual income. 3) This chart is dated as of November 23, 2011 and the legal basis for the chart options may change without modification to the chart. Legal counsel should be consulted prior to taking action on any choice outlined in the chart to determine change of law or inapplicability for any reason. 4) This chart was designed to apply to real estate owned and financed within the state of California. 5) This chart applies only to homes in which the lender uses non-judicial foreclosure. For judicial foreclosures you must consult legal counsel.
