When receiving a notice of default or notice of trustee sale, it is critical to take legal action immediately to stop the sale. You can call and speak with our attorneys for a free case evaluation. On the first call, our foreclosure attorney will let you know how to stop a foreclosure and what is the best legal option for you. From legal stand point, there are 2 legal ways to stop a foreclosure quickly: filing bankruptcy and filing a lawsuit to fight illegal foreclosure.
How to Stop Foreclosure Sale if the Sale Date is Tomorrow?
If your sale date is less than 3 days away, your best legal option is to file a bankruptcy. If you have filed bankruptcy in the prior 12 months, filing a second or third time will have a different result; so it is best to seek the help of an experienced Los Angeles bankruptcy attorney or foreclosure lawyer to make sure that your sale date will be stopped.
When to File a Bankruptcy to Stop a Foreclosure?
Filing a bankruptcy is one of the best solutions to stop the foreclosure sale. Bankruptcy helps to protect the home, cars, and other assets from the lender while eliminating debt. Both Chapter 13 Bankruptcy and Chapter 7 Bankruptcy will immediately stop foreclosure.
Filing a Chapter 13 Bankruptcy is suitable when there enough income to pay the monthly mortgage payment, plus expenses, plus a portion of the arrears [missed payments] for the next 3 to 5 in a repayment plan. Upon filing bankruptcy for the first time, the foreclosure sale will immediately be terminated and you will be able to continue to reside in the property. Alternatively, you can also file a Chapter 7 Bankruptcy to buy some extra time to negotiate with your lender and eliminate debts such as credit cards and medical bills.
How to Stop a Foreclosure Sale Without Filing Bankruptcy?
Many individuals want to know how to stop a foreclosure sale without filing bankruptcy. In California, it is possible to file a lawsuit based on illegal foreclosure. Depending on what is happening in your case, if there is enough time, filing a lawsuit may be a better option to stop foreclosure than filing a bankruptcy.
When to File a Lawsuit against the Lender to Stop Foreclosure?
California foreclosure laws make it illegal for a lender to move forward with a foreclosure while a borrower is in review for a loan modification. Making the best decision for stopping foreclosure depends on what is going on with the lender and other issues such as debt and income. An experienced mortgage foreclosure attorney will list options for defending a property from foreclosure and discuss success rates for each option.
When to Apply for a Loan Modification to Stop Foreclosure?
Applying for a modification is one of the early options that a borrower can exercise to stop the lender from moving forward with a foreclosure. If a lender is threatening to foreclose, a borrower should apply for a loan modification. There is NO NEED to hire a lawyer or a third party to apply for a modification. Most foreclosure attorneys agree that the borrower is the best person to apply; because the process does not involve any court filings or judicial orders.
If a lender is in the process of reviewing a loan modification, any foreclosure action is considered to be illegal; and is referred to as a dual tracking violation [under California law]. An experienced foreclosure lawyer will be able to file a lawsuit to stop the foreclosure sale if a notice of default or notice of trustee sale is sent by the lender during the loan modification process.
Applying for a Short Sale
When applying for a short sale, the lender is usually required to stop any foreclosure action [under California laws]. A short sale occurs when you sell your property for a lower price than the amount owed for the mortgage. It requires the consent of the lender. Short selling the property is a real estate transaction that requires negotiation with the lender. Applying for a short sale is not a legal process, and does not require the assistance of a lawyer.
Requesting a Deed in Lieu to Stop Foreclosure
You can stop the foreclosure sale by entering into an agreement with the lender to transfer the property back to the lender. A deed in lieu is similar to a short sale, and is beneficial in terms of forgiving debts remaining after the property is sold.
A deed in lieu also requires the consent of the lender and some negotiation with the lender. When applying for a deed in lieu, the lender is typically required to stop any foreclosure action [under California laws]. Applying for a deed in lieu is not a legal process per se, however it may be a good idea to enlist the assistance of a lawyer.
Hire Attorney to Stop Foreclosure
If you are facing foreclosure and your sale date is coming up, it is best to call and talk to a lawyer right away! If you are facing foreclosure, do not wait for the lender to help you; call and talk to a foreclosure attorney today.
The foreclosure attorneys at Consumer Action Law Group can stop a foreclosure sale in less than one hour. Saving your home requires hiring a foreclosure lawyer with a successful record of saving properties from foreclosure sales. Call today and discuss your case with our foreclosure attorneys for free: 818-254-8413