Sacramento Asks Real Estate Questions

July 31st, 2008 categories: Ask Gena, Realtor

Ask Realtor As always, you are invited to ask whatever Real Estate related question you may have.

All answers will be based on California Real Estate and anonymity is always enforced.

One of today’s Real Estate Question is about Foreclosures in California.

What is the time line for a Foreclosure?

When a homeowner is late on paying their house payment this is the typical scenario of events.

After 60 days of none payment the mortgage lender or service provider attempts to contact the homeowner to find out why their payment is late. The homeowner’s file is sent to the Collection Dept. and the service provider sends a “demand” or “breach” letter to the homeowner pointing out the terms of the mortgage that have been violated. The homeowner is given 30 days to bring the amount current by paying all penalties and late payments.

After 90 days a Notice of Default is recorded in the county where the property is located. This is considered “constructive notice” to the public. Any junior lien holders are given proper notice of default. The homeowner has 90 days to bring their past due account current. This period is also referred to as the Reinstatement Period.

Day 180–201 This is the time if the homeowner has not paid their past due amount current during the 90 day period that the lender will authorize the Trustee to record the Notice of Trustee Sale. A foreclosure sale at public auction can take place 21 days after this recording.

I would like to buy a house but have no idea what my credit score means as opposed to a mortgage loan. Can you tell me what the numbers mean in plain English?

Credit score is very important in determining what type of loan program a home buyer qualifies for and what the terms of the loan are. Here is an example of what those numbers actually represent.

720 – 850 Excellent, this gives the best financing terms and represents the best score range.

700 – 719 Very Good, qualifies to receive favorable financing

675 – 699 Average, will qualify for most loans

620 – 674 Sub-prime, may qualify but will pay higher interest

560 – 619 Risky, might have trouble getting a loan

500 – 559 Very Risky, You need to work on improving your rating

These are numbers that are assigned to you depending on your creditworthiness. The numbers show how well or how poorly you repay your bills, debt. The higher the number, the more likely you are to repay your bills on time. The higher the number, the better loan you will receive.

Your credit score follows you, not only when trying to buy a house but also when trying to buy a car or get credit. The higher your credit score the better deals you will make. This requires paying your bills on time all the time.

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If you have a real estate question that you would like an answer to be sure to check out and read what other home buyers and home sellers have asked or feel free to ask your Real Estate question by email.

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