Explanation of the Foreclosure Procedure

A foreclosure can occur on any mortgaged property, whether it’s a private home or an office building. A foreclosure typically begins after the borrower has missed his third yearly payment, although this can vary by country or property type. Although the foreclosure procedure does not officially start until after a few missed payments, the lender normally contacts the borrower well before then, whether to remind him to create his payment or negotiate new provisions.

Foreclosure on Mortgage vs. Deed-of-Trust

A property can be bought via even a deed-of-trust or a mortgage. The distinction is that a deed-of-trust allows the lender to pursue a foreclosure via a”non-judicial ability of sale” (or even a”trustees sale”), which enables them to avoid lengthy and costly court processes. A mortgage, on the other hand, would require the lender to obtain permission from the court and follow its own protocol.

30 Days Past Due

The general timeframe when the lender starts the foreclosure procedure is 90 days after the last missed payment, however, the lender can speak to the debtor as early as 15 days beyond her payment due date. Most mortgage businesses provide the borrower about a two week grace period after the due date each month to create a payment without incurring any penalties. After the grace period, the borrower will begin to incur late fees and will have to bring her payments present within 30 days of their due date.

90 Days Past Due

The lending company will continue to speak to the debtor as soon as he starts to miss payments. But, it is not until the 90-day mark the lender starts to pursue the debtor. At this phase, the lender may issue a Notice to Accelerate, or Demand Letter, which specifies that the debtor has an extra 30 days to reinstate the mortgage prior to the lender officially begins the foreclosure procedure.

Notice of Default

The Notice of Default is issued after the debtor fails to reinstate the loan over the 30-day grace period stipulated in the Notice to Accelerate. Nonetheless, in some instances, the lender will forgo the Notice to Accelerate completely and issue the Notice of Default when the next payment is missed. In this case, the homeowner will have roughly three weeks (depending on state legislation ) after the issuance of this Notice of Default to make the mortgage current or the lender will repossess your property and auction it to the maximum bidder. The couple months involving the Notice of Default and the actual sale of this property presents a critical opportunity for the debtor and lender to negotiate and conserve the property from foreclosure.

Borrower Pre-Foreclosure Options

During the few months leading up to the foreclosure sale, the lender has many tools at their disposal to help the debtor save their property. These include financing modification, refinancing, repayment strategies, short-sale, deed-in-lieu or the President’s Building Home Affordable Plan (that is only available to homeowners who own the property for at least two years and made it their main residence). It’s in the lender’s best interest to maintain the debtor’s ownership of the property. Doing this would allow the lender to keep on receiving interest payments on their investment for a decade or so, thus increasing their profit. Furthermore, the lender’s primary objective is to originate loans that provide them with decades cash flow. Foreclosing on a property would indicate that the lender normally must sell the collateral for under market value, in addition to having spent a large sum on legal and government fees.

Foreclosure Sale

The Notice of Sale is issued after the three month or so period has died and all options, at this time, have been drained. The note will be delivered to the borrower at least 20 days prior to the purchase date and provide information at the time, place and date of their property auction. At this phase, the lending company will place ads in the local newspaper and place a”Notice of Sale” sign on the property itself. The borrower will have up to five days prior to the sale to reinstate the mortgage and stop the foreclosure procedure. Now, the lender will require the borrower to pay the entire loan amount to reinstate the loan. This provision depends on state law. If the sale date has not been postponed, then the land will have been marketed to the maximum bidder. The property will normally sell for significantly less than the market value, and any profits will be used to pay some or all the debtor’s debt to the lender. Otherwise, the land will become a bank-owned property, or REO property.

After the Foreclosure

The foreclosure process can occur between six weeks to over a year to complete, depending on the circumstances at hand. After the foreclosure and the land has been sold, state law may provide the debtor a limited period of time to keep in the property without fear of eviction. According to HUD, this is called the”redemption period.” The terms and existence of this provision depend on state legislation and also the sort of foreclosure proceeding. The state of California, as an example, provides a redemption period only after a judicial foreclosure proceeding and allows the homeowner to keep in the property for up to one year after the property has sold. Some states also permit the borrower to buy back the property by paying off your whole loan amount plus any fees incurred.

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Can You Roll a Second Mortgage Into a First Mortgage?

Second mortgages provide homeowners with a variety of options when financing their houses. Some people today use second mortgages to prevent mortgage insurance when they purchase the house. Many homeowners use home equity lines of credit, or HELOCs, to leverage the equity in their house for a variety of jobs. Some small-business owners even use them to fund their companies. Combining another mortgage with a primary mortgage is normal, but the kind of refinance used to unite these depends on what exactly the second mortgage was used for.

Document when you took out the second mortgage and determine whether any funds were used for any purpose aside from buying the house. Fannie Mae and Freddie Mac, the nation’s two largest government-backed businesses which purchase mortgages from lenders for resale, need the second mortgage for a purchase-money loan (used simply to purchase the house ) when the new loan is a rate-and-term refinance. If the homeowner shut on the second mortgage even a day after the order to refund the homeowner down his payment, the new loan will be a cash-out refinance. Cash-out refinances have a tendency to have stricter lender guidelines and higher interest rates than rate-and-term refinances. Cash-out refinances permit equity in excess of $2,000 to be withdrawn from the house, unlike rate-and-term refinances, which cap the amount of equity received at $2,000.

Determine whether you have enough equity to incorporate the second mortgage into a new first mortgage. Any loan with a balance which exceeds 80 percent of the home’s value requires mortgage insurance. The cost of mortgage may create the payment greater than the current payment on both loans. It is possible to estimate your home’s value by viewing the sales prices of other houses in your area.

Contact many mortgage lenders and get quotes for your mortgage. Tell them what the projected value of your house is and whether your second mortgage has been used to purchase the property. Contact at least three lenders when obtaining quotes. This will ensure you find a lender with fair prices and pricing.

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How Can I File for Property Tax Reduction?

If you feel your local tax assessor has put the value of your property considerably higher than it’s worth in the current marketplace, you can resign yourself to paying, or you could gather evidence to attempt to demonstrate your assessment is wrong. Unless you discover a factual error in your assessment, there’s no guarantee you’ll convince the county to lower it, but there’s no cost to allure, and should you win, you’ll see your property taxes reduced.

Research your local filing procedures. The exact procedures, and the opportunity to file an appeal, will differ from county to county throughout the country, the Chicago Tribune states; should you miss the local appeals period, you’ll reduce your chance until next year. In San Francisco County, for example, you have to file an appeal, along with a $60 fee, between July 2 and Sept. 15 to be considered. The Assessment Appeals Board will then schedule a hearing where both you and the assessor will have a chance to make your case. You may download application forms from the web site of the board.

Read over your assessment and look for factual errors. All it requires is a clerical error misstating your house’s square footage or the era of the house to result in a confused assessment.

Find out more about the industry. If there aren’t any obvious errors, you’ll need to show your house is worth less than the assessor maintained. If you can find homes of a comparable size, style and age that are appraised for less or sold for significantly less –the Consumer Affairs site recommends finding at least three–you still have a chance to make your own case.

Check for change. If your neighborhood has been rezoned lately or when there has been a new development that contributes to a lot of visitors, Consumer Affairs states, you may have the ability to make a case your land has dropped in value.

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Sunny Charm to Get a Hilltop Cottage

A California couple hunted for years to find a sunny refuge . Finally they discovered a dilapidated cottage set on a 1-acre lot overlooking Monterey Bay, and revealed it to general contractor Harry Smeenk. “The bones are great; the price is correct,” Smeenk explained, “but it is going to take a lot of work”

The homeowners already had a nice place to live but desired a weekend escape with not much home but a lot of space for entertaining. They asked Smeenk to help reimagine and enliven the cottage’s rundown interior and exterior, and tapped Martin Ballesteros of Ballesteros Landscape to transform the 2,000-square-foot lawn. Following three years of landscaping and renovating, the few never wishes to leave the hilltop hideaway.

at a Glance
Who lives here: A few in the property management business
Location: Santa Cruz mountains, California
Size: 932 square feet; two bedrooms, 2 bathrooms

Shannon Malone

The exterior was motivated by the glowing yellow cottages with red metal roofs and gingerbread trim that the owners saw on a holiday to St. Barts in the Caribbean.

Before Photo

The 1930s home belonged to a family that also utilized it as a weekend cabin. In 1950 they enlarged the arrangement to the two-bedroom house.

Once the present owners bought the house, the home was sitting precariously on a post-and-pier foundation and was sagging noticeably in back.

Shannon Malone

AFTER: Smeenk raised the home, poured a concrete perimeter foundation and put the house down onto it. The walls, doors, doors and mismatched moldings are all first. A brand new wraparound pergola covers the wooden deck.

The owners worked with Ballesteros to transform the barren yard into a superbly landscaped area for entertaining. “There was nothing until we began the project,” says Ballesteros. “There were only weeds, tall bushes and concrete”

Now a bocce ball court skirts one side of the bright wrought patio.

Toss some popular games into your lawn plans

Shannon Malone

The owners kept many of the home’s original features, attempting to honor and enhance them as far as you can. They kept the doors, wood paneling and single-pane windows, in addition to the exterior siding where it was in decent condition.

Shannon Malone

The living area has three distinct styles of original trim and window molding. “We rebuilt some of the timber windows to maintain them in style,” says Smeenk.

The owners opted to maintain and restore the wood paneling. Painter and artist Bill Mackin implemented a new layer of clear coat and painted the molding at a crisp, white semigloss.

Shannon Malone

Interior designer Jan Pfaff helped the couple furnish and decorate the space at a relaxed-meets-eclectic style.

Before Photo

The old kitchen was dingy and outdated, with lackluster cabinets, flooring and countertops.

Shannon Malone

AFTER: The “brand new” electric cooktop and oven were castoffs from a buddy’s remodel. The homeowners saw them as an opportunity to reuse and save money, so they gave the appliances fresh life in their own kitchen.

The curved storage at the end of the kitchen island was an original feature; the couple chose to maintain and enhance it.

Dishwasher: DishDrawer, Fisher & Paykel, Sears

Shannon Malone

Smeenk replaced the old carpeting and vinyl flooring with tile ; the dining room chairs were a lucky find from Craigslist.

Shannon Malone

Bill Mackin painted the master bedroom timber paneling a crispy white. As soon as it’s big, the space lacks closet area, so the couple got creative about where to save things — tucking many items under the mattress.

Shannon Malone

From their patio the owners enjoy taking a look at wildlife and magnificent views of the Salinas Valley, Carmel Highlands and south end of Monterey Bay. Ballesteros helped them select plants suitable for their environment. “The plants needed to be vibrant, deer resistant and drought tolerant — those were my three requirements,” the landscape designer says.

Ballesteros also designed and set up the irrigation method. “This was the most critical challenge we faced,” he says. “We needed to bring in fresh topsoil and rototiller the entire area, because water would not drain through the clay soil.”

Shannon Malone

The couple worked with Smeenk to convert an old redwood water tank behind the house into a whole outdoor bathroom.

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More: Take Your House Beautiful With Caribbean Chic

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Clutter-Free Minimalism for a Converted Brick Storefront

Amy Tibbals and Kerri Fukui assessed off the top three must-haves on their home purchasing list when they bought this converted storefront in Utah: Open, bright and easy. “We walked in to clean, white walls; large ceilings; unfinished concrete floors and a dynamite kitchen, and we’re like, ‘OK, yes. Sold,'” says Tibbals.

Developer Geoff Tice remodeled the house, which was once a mom-and-pop grocery store, meat market and bookshop. He added glowing heating and energy-efficient windows, creating an perfect clutter-free decorating canvas for Tibbals, an editor in City Home Collective and Fukui, a manager and purchaser in a snowboard shop. “Our enthusiasm right now lies in the fact that we discovered a construction we adore, and that we make to do all these thoughts that will make it feel like our perfect space,” Fukui says.

in a Glance
Who lives here: Amy Tibbals and Kerri Fukui
Location: Fairpark neighborhood of Salt Lake City
Size: 1,300 square feet; 2 bedrooms, 1 bath

Lucy Call

“Neither of us cares for any level of clutter, nor are we attracted to dim spaces, so that it works really well,” says Tibbals. The floor-to-ceiling frosted glass wall has energy-efficient, low-emissivity, argon-gas-filled windows. “The space is pretty much flooded with natural light, so we sorta lucked out there,” she says. “Really, the house has been designed in such a manner which not only speaks to a natural, minimalist design, but sort of needs it; there aren’t lots of corners or nooks to fill in this house, and we prefer it that way.”

Lucy Call

“Facing east, it is absolutely full of bright sunshine in the evenings, which makes pretty toasty however is a lovely thing to wake around,” says Tibbals. “it is a great area to see in or have a cup of coffee.”

Chair: Milan 2-Piece Sectional, Lofgren’s; arc lamp: Green Ant; round table:Teak Side Table,Brook Farm General Store; windows: Serious Windows, Heliocentric

Lucy Call

Tibbals and Fukui worked through several possibilities from the layout of the primary living space. “With the kitchen lining the whole south wall, we had any questions over whether we should split the space into living and kitchen in a more obvious manner — say, with a very long, narrow table which may also function as additional counter space,” says Tibbals. “Ultimately we hated that idea, as the kitchen is actually an art piece of its own — with the timber and the apron-front farm sink. It is a fantastic view to get from the sofa.”

Lucy Call

Tibbals and Fukui’s friend, Laura Naylor, photographed this large black and white portrait of a man who worked in the Great Wall of China. “He was laughing in her attempt to speak Chinese, which can be kind of cool to know. He adds a genuine bit of happiness to the room,” says Fukui.

Lucy Call

Tibbals says they’re still deciding about the best place to get a table. “We want to avoid having too many large pieces in the 1 space, so it is kind of a practice in visualization,” she says. For now they generally eat out if the weather is nice or in the coffee table in the living area.

The floor is concrete and has glowing heating.

Lucy Call

Previous owners had remodeled the house before Tibbals and Fukui moved in. The developer, Geoff Tice, is behind the layout and finishes.

Lucy Call

“We’re newbies in the space — it has not even been a year since we bought it — so we’re still waist deep in thoughts and eventual additions that’ll put a more personal stamp on it,” says Tibbals. “That said, it feels just like ours, because the layout speaks so well to how we would like to live and serves as a daily practice in function and simplicity.” The main bedroom exemplifies that philosophy.

Bedspread: Cotton Sheet, Brook Farm General Store; bed: custom, Patrick Davis Design

Lucy Call

Tibbals and Fukui believe that everyone should feel a sense of calm and comfort at home, and they’re excited about all they could do to their space to constantly attain this sense. The guest bedroom is outfitted in mostly neutral colours and yet another black and white art piece.

Office desk: Tyler Millard Tuft, Walger and Millard Design

Lucy Call

The bedroom doubles as an office. A golden pothos blossom sits on the clerestory window. The frosted glass door contributes to a patio and a detached two-car garage.

Lucy Call

“A large want for us in locating a house was a garden and lawn of our own, so we’re thrilled to have it,” says Fukui (at left). She and Tibbals (at right) credit their close buddy Cody Derrick, Realtor, designer and founder of City Home Collective, for assisting them locate this particular home.

“A barbecue and glass of wine in the backyard with friends is a top-shelf day for us, and growing our own food has been vastly important. We’d ultimately like for our whole yard to be shrouded in green, make sure it plants, veggies, vines or trees,” says Tibbals.

Exterior paint: Day Hush, Behr

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Midcentury Homes | Ranch Homes | Conventional Homes| Barn Homes
Townhouses | Apartments | Lofts | Holiday Homes

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October Checklist for a Smooth-Running Home

In the very first sharp mornings spent raking leaves, to the last exciting days preparing for trick-or-treaters, October is usually a busy month round the home. Mix in mandatory home maintenance (clean rain gutters, roll hoses) with items you have been needing to get to (finish a decorating job, select up gourds for front porch) and you’ll discover your to-do list vanishing before your own eyes. Work your way through the 11 jobs on our checklist, and from the end of the month you’ll have your home winter-ready — and also a little more beautiful, to boot.

Stonewood, LLC

1. Clean rain gutters after leaves drop. Leaves and other debris that clog your rain gutters can lead to leaks, so it is best to get to the chore as soon as possible after the majority of the autumn leaves have fallen. If your home is smaller, and you feel comfy on a ladder, even draining rain gutters is a fairly simple task to do yourself. If your home is more than 1 story, hire an expert.

2. Repair roof and siding. Should you see any damaged areas for your roof, siding or shingles, it is crucial to look after the problem before winter storms come through.

Lands End Development – Designers & Builders

3. Scrub and shop outdoor furniture and gear. From the end of October, with light fading earlier and weather getting less friendly, your outside seating area is very likely to go rancid. Rather than leave out furniture in bad weather, put it away in a drop or the basement. This month, also aim to wash your gardening tools and put them away neatly. Those in cold climates should move winter gear (snow shovel, ice scrapers) to a convenient place now so you don’t need to scramble when the first frost hits.

4. Put up storm windows and doors. Should you use storm windows or doors, now’s the time to get them installed. These features can help conserve energy during cold months and safeguard your home from drafts.

Moore Architects, PC

5. Give porch a fall makeover. Sweep off the summer sand, refresh baskets with autumn flowers, wash front windows and use a broom or soft brush to wash siding up. An armful of decorative gourds and pumpkins makes a simple display that will last all month.

6. Close off outside taps and roll pliers. Freezing temperatures may harm hoses and water pipes, so be sure to shut off empty and taps hoses of water before the first big freeze.

Martha O’Hara Interiors

7. Organize sand room. In the rush of return to college — and work — this tough entryway can take a major beating. Schedule a weekend day to sort through the mud room, putting away unneeded items and paper clutter and cleaning the floors. Invest in a couple of new baskets, bins and hooks to corral items.

Crisp Architects

8. Check security devices. Every home should have a carbon monoxide detector, as well as smoke detectors positioned throughout the home. Take a minute to examine that yours will be in working order, and change batteries if needed.

Shannon Malone

9. Sharpen knives. If you become aware of your kitchen knives becoming a bit harder to use, that is a sign they are due for a professional sharpening. Regular sharpening at home can help prolong the life span of a sharp edge on knives, but once that border is missing, just a pro can bring it back. Make a date to fall off your own knives.

Tim Barber Ltd Architecture

10. Type and store clothing. Don’t let summer swimsuits and shorts take up precious cupboard space yearlong should you only use them for a couple of months!

Alter warm-weather accessories and clothes to an out-of-the-way cupboard in bins with tight-fitting lids. And be sure to store just freshly laundered items — bugs are attracted to dirty clothes but usually leave clean garments alone.

Lisa Petrole Photography

11. Tackle a decorating job from start to finish. Quit dreaming and start doing! Select one sensible job (e.g., a single room or nook) which you would like to transform this month, and make it happen.

It might be helpful if you break your project down into bite-size pieces and schedule tasks throughout the entire month.

Read the DIY projects section

Inform us what’s on your home care record this October?

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Guest Groups: Laundry Room Mini Makeover

I like to tinker with my laundry room by adding small decorative or organizational developments here and there. Occasionally the smallest changes can make a significant difference. I am hoping that the ideas that are next will be the inspiration needed to pretty-up your laundry area! — Elaina from Fun Finds for Mother

Honey-Do Triple Laundry Sorter – $67.99

This is very like my laundry sorter, which kind of changed my whole outlook on laundry. The children really like to provide each other rides at the cart and use it within their fancy fort creations. Fun for the whole family!



Wood Clothespins – $9.13

Display a lot of wooden clothespins at a glass storage container, then grab them when you need them!

Oliver Yaphe

Canvas Laundry Hamper – $84

It is always beneficial to have an extra hamper on hand, especially if it’s one as beautiful as this canvas hamper by Oliver Yaphe.

The Home Depot

LG Electronics Compact Front Load Washer In White – $999

While not a little addition, a glistening white front-load washer and dryer set is in my laundry area wish list.


Modern Montana Jar

These jars are great for keeping everything from powdered laundry detergent to clothespins.


SLOM Bottle with stopper – IKEA

I have one of those glass bottles full of dish soap in my kitchen counter tops. The exact same could be carried out with liquid laundry detergent. I seems so much better than an ugly plastic jug!


Landmark Schoolhouse One-Light Pendant Bronze – $375

Let there be light! My laundry area that is ideal has a couple of those pendants hanging down from the ceiling.


KNODD Bin With Lid, White – $24.99

When I gave my laundry area a mini makeover a couple of years before, I added this bright white bin from IKEA. It is the ideal place to toss used dryer sheets, trash from pockets along with other laundry-related trash. Additionally, it is very simple to wipe clean.


Galvanized Washtub – $39.95

If your laundry room doubles as a storage area, bins such as these galvanized wash tubs are useful for storing bulky products.


Retractable Drying Line – $6.99

Zip out a drying point when you need it for this retractable wall-mounted unit.

Bed Bath & Beyond

Wall Mounted Ironing Center – $219.99

I might actually iron clothing if I had a wall mounted ironing board similar to this one!

Ballard Designs

Beadboard Drying Rack – $89

This beadboard drying rack tucks out and out of the way when you’re not using it to hang hand-washables to dry. It comes in black, honey or rubbed white.

Loll Designs

BBO2 table – $394

My children really like to hang out while I do laundry. When there’s room on your laundry room, a children play table, such as this one from loll layouts (created from recycled milk jugs), is a fun addition. I have a similar desk in my laundry room that I use for washables which need to dry apartment.

Loll Designs

Chair – $199

Have the children pull up a seat to a little table and help with the folding — or match up a pair of socks.

Modularity Tiles

Custom Designed Vinyl Tile Floors

I would really like to pay the cement floor of my laundry room with those vinyl ModularityTiles. They are offered in die-cut circles and rounded squares which you may mix and match from 17 color choices — fun!

The Laundress

Stain Brush – $10

I have a thing for wood-handled brushes. This one is from the Laundress and is especially made to scrub out laundry stains.

Steele Canvas

Colored Canvas Baskets

Industrial Steele canvas laundry carts are all super functional and I really like their appearance. They are going to be coming out with coloured canvas baskets soon!

The Home Depot

Martha Stewart Living Cubbie-Storage Bench With Seat – $72.98

Maximize storage space. In addition they have coordinating cloth bins which slip directly into the cubbies.


Vika Hyttan/Vika Moliden Table – $189

I can envision my laundry room wall with two of those Ikea stainless steel tables lined up to get freshly laundered clothing for folding.

West Elm

Colored Metal Footed hitter – $14

These little retro clocks are perfect for popping on a laundry room shelf to let you know how long you’ve been sudsing your own duds.

Next: Where to Stash the Washer and Dryer

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