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.
How much does it cost? Are Trustee Fees regulated by statute?
A maximum fee of 1% of the principal amount due on the loan (plus costs) is allowed by statute. However, our fees are negotiable. Please contact us for a quote. We typically require a deposit of 1/3 of the amount on recording the Notice of Default, 1/3 on recording the Notice of Trustee Sale and the final 1/3 on conducting the Trustee Sale. In addition, there are costs incurred of title, mailing, posting the property and publication of notices. These fees vary and are typically between $500 - $1,500, depending on the amount of the note and required mailings. These fees are all chargeable to the borrower. If they reinstate the loan or payoff the loan our fees are included so you are reimbursed.
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.