Sad and confused in California

[lakers818]

My mother bought a house in 2007, but struggled to pay it and was sent to foreclosure. She fought it and was in the process of a possible refinance, but then passed away in 2010. I have now (Feb 2013) received a "Substitution of Trustee and Full Reconveyance" listing her as the trustor, and 2 other entities as the beneficiary and trustee. I have also received a "Notice of Declaration of default and demand for sale and of notice of default and election to sell." Does this mean the house is going into foreclosure? This is in California, and the house was for an amount I would not be able to afford, unless it was half the price. In the past, I have only received statements from the bank with the note amount. What are my options?

 

[sandyclaus]

My mother bought a house in 2007, but struggled to pay it and was sent to foreclosure. She fought it and was in the process of a possible refinance, but then passed away in 2010. I have now (Feb 2013) received a "Substitution of Trustee and Full Reconveyance" listing her as the trustor, and 2 other entities as the beneficiary and trustee. I have also received a "Notice of Declaration of default and demand for sale and of notice of default and election to sell." Does this mean the house is going into foreclosure? This is in California, and the house was for an amount I would not be able to afford, unless it was half the price. In the past, I have only received statements from the bank with the note amount. What are my options?

Sounds to me like the loan has been declared in default, and you have been notified that they intend to sell it if you are unable to do so in order to satisfy the outstanding mortgage. This is an all-too common situation for those who bought their properties when the prices were much higher than they are now, or whose loan is upside down (they owe more than the property is worth).

I would suggest contacting the lender to discuss options to save the home, including a short sale or deed in lieu of foreclosure. Otherwise, I believe that the next step to occur will be a notice to you that they intend to sell the property at auction in order to recoup some of their losses. Your only chance is to see what you can do prior to that happening.

Here's a website you might check out for possible solutions to avoid the foreclosure: keepyourhomecalifornia.org. It's sponsored by the CALHFA Mortgage Assistance Corporation in conjunction with the Federal Government.

 

[nextwife]

And what has been done regarding her estate between 2010 and now? wHAT IS THE STATUS OF THE MORTGAGE AND TAXES, ARE THEY STILL IN DEFAULT?

Your post makes it sound as though you believe that what is or is not affordable for you is somehow relevant to this, legally.

 

[Zigner]

How was the estate settled without dealing with the house? The house should have been sold to try to repay some of the estate debts...

 

[nextwife]

How was the estate settled without dealing with the house? The house should have been sold to try to repay some of the estate debts...

Well, yes, but selling the real estate would only benefit the creditors if the house is right side up. If there was equity, it absolutely should have been sold, and any creditors paid with the proceeds. The poster only stated how affordable the payments and mortgage are to him, not what is owed vs. what the market value may be, so we have no clue if equity exists from which to pay creditors. However, unless the poster is actually now the LEGAL owner, he can't do anything with the house or refinancing the mortgage..