Bankruptcy
A legal declaration of an individual or organization's inability to pay their creditors. This legal declaration severely impacts a person’s credit and their ability to borrow money. Protections, in the case of homeowner bankruptcy filings, place automatic stays on all debt collection actions, including foreclosure. Bankruptcy does not stop foreclosure, it does delay the sale of the property until the homeowner resolves the debt, or in most cases, the lender gets approval from the bankruptcy court to continue the sale (see Order Granting Motion for Relief From Stay). As a secured debt, the lender has the right to take the security (property) if the homeowner lacks the ability to pay the debt as agreed. Bankruptcy is only an effective tool against foreclosure if the homeowner will have sufficient income to pay their home loan and make up past due amounts once the bankruptcy plan is completed.
▪ Chapter 7 - "Debtor Wipeout" The court oversees the liquidation of the debtors' non-exempt assets, distributing the cash proceeds proportionally amongst their creditors.
▪ Chapter 11 - This is a business reorganization proceeding.
▪ Chapter 13 - "Debtor Workout" This is the almost automatic choice of most trustors seeking to use a bankruptcy filing to delay the inevitable trustee's sale as long as they can. The purpose of this proceeding is to give a "wage earner" time for rehabilitation, a temporary respite free from the collection efforts of creditors.
Starting a foreclosure is as easy as
- Click on the "Get Started Now" button below.
- Complete the secure online form, or download a printable version.
- Submit the form securely via the website, e-mail, fax, or mail it to us.
What if my loan is a 2nd Deed of Trust and sometime during this process the 1st Deed of Trust records a Notice of Default?
The process is the same for that Notice of Default. The borrower, or current owner has 3 months plus 21 days to reinstate or payoff the loan. After discussion with legal or tax counsel, it is usually prudent to bring this senior loan current. This advance to a senior can be included in your payoff amount. While you should make attempts to contact the lender, it requires time and patience. We suggest contacting the lender after obtaining a Loan Number, to obtain information or amounts that may be required to bring the loan current (out of default) or to pay if off.
2009 To 2014 Foreclosure Statistics for San Luis Obispo County, California
This document details the number of Notice of Defaults, Notice of Sales, and Trustee's Deeds filed in San Luis Obispo County, CA from January 2009 through 2014. For review of data prior to 2009 please contact our office.