Expert: Dick Dennis - 7/19/2006

Question
My grandmother purchased a home for my cousin and my cousin was making the mortgage payments.  Now, my cousin now has to move and gave my grandmother the money for 2 months worth for the mortgage.  My grandmother has put the property up for sale and refuses to make the payments because she feels that she will be out that money if the home does not sell.  She says that at her age, she does not care if it goes into foreclosure and make her have bad credit.

How much time typically for a lender to put a home into foreclosure?  This is in CA.

Is she going to run into a problem if the home is in foreclosure when she is trying to sell it?  

Answer
The foreclosure process in California is 111 days, however it seldom is less than 120.

In whose name is the mortgage (trust deed in California), Dan? If it is in your grandmother's name, then I guess she doesn't care about a foreclosure against her name. If it is in your cousin's name, then your cousin is going to have a black mark against her credit. Young people seem to not care about those things until they get older and then they rue the day they let the property go into foreclosure.

While the property is for sale, once a buyer finds out that the property is in foreclosure, I guarantee if there are any offers, they will be much lower.

I am a California broker, Dan. I have helped many people who were in foreclosure. Where is the property located? I just might be able to help in person if the house is somewhere in southern California, including buying it.

I do wish you well.

Dick Dennis         dixiedee13@aol.com