San Luis Obispo Foreclosure Lawyers

Find the right Foreclosure attorney in San Luis Obispo, CA

Foreclosure Law in California

In San Luis Obispo, California, foreclosure is a legal process through which an entity which has issued a mortgage takes possession and/or ownership of the property that secured the mortgage, because the individual who took out the mortgage has consistently failed to make payments on it. The property in question is usually a house.

When consumers have to deal with foreclosure, it almost always involves a home. The bank will normally take possession of the house, and then sell it at auction, to try to encompass the balance of the mortgage. Banks typically want sell the property quickly, for as much money as possible.

In California, and every other state, foreclosed homeowners can go through a "foreclosure by judicial sale." In this form of foreclosure sale, a court supervises the sale, ensuring that the bank makes every reasonable effort to get the highest price possible for the house. The purpose of this is to maximize the chances that the bank gets, at the very least, the remaining balance of the mortgage. Although this may seem counter-intuitive, it is intended to safeguard the borrower: it helps prevent them from still owing money after the house is sold at auction.

Some states treat mortgages as "non-recourse loans." A non-recourse loan is one that is secured by the borrower's property, but for which the borrower is not personally liable. Essentially, this means that a lender in a foreclosure can take the house that was mortgaged, but nothing else. If the house sells for less than the lender is owed, it cannot go after the borrower.

How to Possibly Avoid Foreclosure in San Luis Obispo, California

First and foremost, you need to communicate with your lender, and not dismiss the issue. Ignoring a problem with your mortgage will not make it go away, and can only make things worse. You should be forthright with your lender, and stay in touch with them as much as possible.

You should be mindful of the fact that your bank wants you to make your monthly mortgage payments - they likely aren't scheming to trick you into giving up your home. This isn't out of altruism, it's due to the fact that foreclosure is almost never as lucrative for the bank in the long run than a mortgage that is paid in full over a period of years or decades, with interest accruing the whole time. For a bank, a foreclosure is just a last resort to cut their losses.

If your financial situation suddenly changes, your lender may be willing to change the terms of your loan, at least temporarily, permitting for lower monthly payments. If this means that they will be able to get some money from you, with default as the alternative, it can become an attractive option for everyone involved.

Some buyers in California, when none of the above options have worked, resort to a "short sale." This includes selling a house which is about to be foreclosed, typically for less than its market value. If the house sells for less than what's left on the mortgage, the homeowner is relieved of the duty to pay the balance. If you have decided that you have no hope of making your mortgage payments, and foreclosure seems inevitable anyway, this might be the way to go.

Can a San Luis Obispo, California real estate attorney help?

In San Luis Obispo, California, dealing with a possible foreclosure is never easy. However, the assistance of a reliable real estate lawyer can make the whole process much more bearable, and possibly delay or even prevent the foreclosure altogether.

Talk to a Real Estate Law Attorney now!

Life in San Luis Obispo

San 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 iscommonly 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.

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