Can a lender in Second position foreclosure on my property?

Yes, lenders who are in second position can foreclose on a property.  Lender in first position stays in first position.  Therefore, lender in second position must continue to make that monthly mortgage payment to the first lender as well as pay the insurance and other costs such as utility costs.  Usually a lender in second position will foreclose only if there is equity in the property and they can take over that property for a quick sale.  Upon the sale to a third party, lender in first position would be paid off, and lender in second position would keep the difference.  

Can my Home Owners Association (HOA) foreclose on me?

Yes, the HOA can foreclose on a property.  With financing on the property, the HOA would have to take over the monthly payments, insurance and other costs.  An HOA might want to use this strategy if they are concerned about depreciating values or vandalism on the unit or complex.  In certain states the HOA has priority over a bank or lender.  

Why would the lender accept a Short Sale?

A lender will loose money in a short sale or a foreclosure regardless.  In most cases, the lender would loose less money by allowing a short sale and for this reason a lender might accept a short sale.  When there are two lenders then short sale transactions become more complicated.  When there is Primary Mortgage Insurance (PMI) a transaction becomes even more complicated.  For these reasons, a Short Sale Specialist is important to a homeowner in working through a Short Sale transaction.

What is the advantage to working with a Short Sale Specialist vs. a Realtor?

The advantage to working with a Short Sale Specialist is that they have experience negotiating debt with the bank or lender.  They also negotiate the credit hit that the bank or lender will attach to the homeowner’s credit report.  Therefore, by using a Short Sale Specialist to negotiate the debt and credit hit on behalf of the homeowner a Short Sale Specialist is an advocate for the homeowner.  A Realtor’s job is to market the property for sale and get written offers on the property, not negotiate debt and credit with the bank or lender.  The smoothest short sale transactions that we have seen are when the Realtor and Short Sale Specialist work together.  The Short Sale Specialist would negotiate debt and credit with the lender and the Realtor market the property and get written offers.  Obviously the two parties have to share the commissions.  As a homeowner you might want to consider beginning your Short Sale transaction with a Short Sale Specialist and then add the Realtor.

Will a lender accept a Deed in Lieu?

Typically lenders do not like to accept a Deed in Lieu of a foreclosure vs. a typical foreclosure because it takes a lot more paperwork on behalf of the lender, especially if the loan is being serviced or if the loan is a refinanced loan.  The servicing company will loose more money by accepting a Deed in Lieu of foreclosure than a typical foreclosure. 

How long can I live in the home after Foreclosure?

During the foreclosure process some homeowners leave the home for personal reasons, often a new job forces then to leave the area.  In many cases, we have seen that the homeowner is just too emotional to be able to remain in the home.  The technical answer to this question is that in California a homeowner can stay in the home up to 30 days after a foreclosure.  If the property is occupied by a tenant then the tenant actually can remain in the home for 60 days after a foreclosure.  Once that time frame has passed, the new property owner can use eviction to get the occupant out of the property.  Sometimes the new owner, will offer the current occupant 'Cash for Keys' if they vacate the property quickly and leave it broom clean.