Legal Question in Administrative Law in California

Re: Forclosure on our Home

I am sorry you find yourselves in this situation. There are several steps you could take so do not become overwhelmed by worry.

Have you considered moving into a smaller condo or retirement home setting? It is very comfortable to remain in the home you have been in for years, but sometimes reality has to play a bigger role. You probably have enough money in your home [equity] to be able to sell it [you both get a $250,000 exclusion from the initial capital gains if you have lived there two of the last five years], make the down payment on a condo [at 20% down, willneed $40-$50,000] and have some money left over. The mortgage payments might be half of what you are paying now. Also, it is stil cheaper to rent than to owe. In a rent controled City, as long as you pay the rent it is extreemely difficult for the landlord to force you to move.

Go to yuor lender and discuss with them your problems. See if they will modified the loan agreement. A reverse mortgage might work well for you; in essence the bank gives you a sum of money and then has that amount plus interest in your home, so when it is sold they collect the loan amount and interest from the sale of the home. For the short term, if you feel too much pressure from not having paid for two months, get the lender to add that to the principle or maybe a home equity line of credit that will cost you about 9% interest and only applies to the money you actually use [basically, it is a pre-approved loan or cash advance system].

See questions similar to yours for more discussion and answers.

Good luck.

Re: Forclosure on our Home

Promptly talk to your own lender or a reputable real estate loan broker and discuss sale of the house, or a 'reverse mortgage' that allows you to take equity out of the house for your use, and requires no payments or payoff until you sell the house or die. It is designed for senior citizens with equity in a house and no income to qualify for a regular mortgage.