On the first of January, 2013 California officially bolstered rights for home owners facing foreclosure by making a new law effective. The foreclosure law clarifies the rights and obligations of mortgage lenders in California and offers important information about how to stop foreclosure sale proceedings. According to the Office of the Attorney General of the State of California there are several major provisions in the California Homeowners Bill of Rights (HOBR).
For homeowners facing imminent foreclosure, the most important provision may be that Dual Track Foreclosures have been curtailed. The HOBR prohibits the lender from moving forward with the foreclosure process while the homeowner is in the process of being considered for a loan modification. Once the completed application for a loan modification is submitted to the lender, in most cases the foreclosure process must be halted until the application for loan modification is either approved or denied. Often times, the lender fails to provide a notice in writing that the loan modification application has been denied, which is illegal under the new law. Another common HOBR violation occurs when the lender does not inform the homeowner how to appeal a denial of the loan modification, and provide 30 days for an appeal.
Most foreclosures in California are not handled by the courts but rather by trustees operating as agents for lenders. When a borrower falls behind on mortgage payments, the trustee sends a letter to the homeowner explaining he or she has fallen behind in their payments. The trustee’s letter explains the amount of time they have to correct the situation and bring the payments up to date. If the homeowner cannot make back the payment and bring the loan current, the trustee will send a notice of trustee sale warning that the home will be foreclosed and sold at public auction. The trustee sometimes gives the homeowner as little as two weeks’ notice of the foreclosure sale. If you receive a notice of trustee sale California has strong foreclosure laws that protect you from illegal foreclosure.
In most cases, it is best to consult with an experienced foreclosure attorney to stop foreclosure. One advantage of hiring an attorney, in cases of illegal foreclosure, is that the HOBR provides for damages when homeowners sue lenders for violating the state law. Hiring an attorney and suing the lender for illegal foreclosure practices is an aggressive defense and a foreclosure attorney which typically stops foreclosure and provides compensation for homeowners that suffer from illegal practices.
A Chapter 13 bankruptcy plan can also stop foreclosure and aggressive collection efforts as you reorganize your finances and save your home from a trustee foreclosure sale. Seeking help with foreclosure through bankruptcy is often a very wise strategic decision. When a borrower files a Chapter 13 bankruptcy in California there is an automatic halt to the foreclosure process and the sale of the home, with a proposal for repayments of arrears over time.
Our foreclosure lawyers are dedicated to stopping foreclosure and helping homeowners stay in their homes. Their foreclosure attorneys take the time to explain your best options over the phone, offering free legal advice to anyone facing foreclosure. Call Consumer Action Law Group before you lose your home. The first call is always free, and it could save your home. Call (818) 254-8413 today!