In the state of California, according to the law, lenders must offer foreclosure alternatives to struggling homeowners, such as short sales or loan modifications. However, lenders do not typically give homeowners time to pay back their missed mortgage payments, or discuss legal options that can stop foreclosure. Therefore, an experienced Bay Area foreclosure attorney can be beneficial for struggling homeowners in the Bay Area, offering solutions and compromises that may have been overlooked by the lender.
For example, many homeowners do not know that a sale can be halted by a court order even after the foreclosure has begun. A foreclosure can also be stopped by filing bankruptcy. The best ways to stop foreclosure is either by filing Chapter 13 bankruptcy, Chapter 7 bankruptcy, or by filing a lawsuit.
How to Stop Foreclosure with Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy stops foreclosure instantly. In fact, right up to the time of the auction, a homeowner can file bankruptcy to immediately stop their foreclosure. Once Chapter 13 bankruptcy has been filed, a homeowner can start repaying any missed payments, as well as the monthly mortgage payment, without having to risk the loss of their home.
Chapter 13 provides a homeowner with a 3-5 year repayment plan to repay missed mortgage payments as well as any missed car payments. Additionally, chapter 13 stops creditor harassment and eliminates medical and credit card debts. In some cases, second or third mortgages can be eliminated as well.
Chapter 13 bankruptcy has very specific income requirements, so it is very important to consult with a lawyer before moving forward. Our experienced Bay Area foreclosure attorneys can advise you on whether filing for Chapter 13 bankruptcy is right for your situation.
Stop Foreclosure with Chapter 7 Bankruptcy
Chapter 7 Bankruptcy also stops foreclosure immediately, and also eliminates credit card debts and medical bills. However, Chapter 7 is not a long term viable option for homeowners that are in default.
Unlike Chapter 13, filing Chapter 7 Bankruptcy does not give the option for a borrower to catch up in a
repayment plan. Rather, in accordance with the Bankruptcy Code, the homeowner’s assets could be sold by the bankruptcy trustee. The proceeds of these assets are then used to pay off the debt.
As a general rule, saving a home from foreclosure is possible in a Chapter 13, but not in a Chapter 7. It is extremely important to understand that the filing of a Chapter 7 bankruptcy may result in the loss of property even though it temporarily stops a foreclosure sale. An experienced bankruptcy foreclosure lawyer should review the specifics of your situation, to determine which option is right for you.
How to Stop Foreclosure without Filing Bankruptcy
Every situation is different, and you and your attorney may decide that filing for bankruptcy is not right for you. One of the best foreclosure defense alternatives is to file a lawsuit to Stop Foreclosure.
If your lender violated the California foreclosure law [SB900] or wrongfully foreclosed on your home, you can file a lawsuit. An experienced foreclosure lawyer can evaluate your case to see if your lender violated any laws, or engaged in mortgage fraud or illegal foreclosure methods. If there is any evidence to show that you are wrongfully facing foreclosure, an experienced Bay Area foreclosure lawyer can assist you in filing a mortgage lawsuit. Settlements often result in an offer to lower mortgage payments and reinstate the loan, while the foreclosure sale is usually postponed through mortgage litigation.
How to Find a Lawyer with Foreclosure Experience That You Can Trust
If you have you received a notice of foreclosure sale, rest assured that your case is not the first. There are experienced foreclosure attorneys, who have been highly successful in stopping hundreds of foreclosures within the state of California. Take the time to find a Bay Area foreclosure lawyer who will take the time to review your case and help to determine the best option for you.
Consumer Action Law Group is dedicated to fighting foreclosure in California. All first time callers are eligible for a FREE consultation. Consumer Action Law Group offers free legal advice to all homeowners facing foreclosure, so do not hesitate to consult with a Bay Area foreclosure attorney as soon as you receive a notice of default or a notice of trustee sale. We have successfully helped numerous homeowners stop foreclosure within the shortest possible time. If you have just received a notice of trustee sale or a notice of default, we can help you stop foreclosure immediately.
Call 818-254-8413 to talk to a foreclosure attorney that stops foreclosure in Bay Area for FREE!