If you are facing foreclosure or have received a notice from your mortgage lender about your loan being in default, you should know your legal rights before making any decisions about fighting to keep your home or moving out. In California, there are strong foreclosure laws that protect homeowners against losing their homes from mortgage fraud. California homeowners must be contacted by their lender before the foreclosure process starts. Borrowers have various options to keep their home, whether it is modifying the loan, entering into a payment plan to catch up on missed payments, or selling the home prior to the auction.
Homeowners usually rely on their lender to help them through tough times. However, many lenders mislead borrowers and break the law by moving forward with a foreclosure while they say they will help to save the home. When a homeowner receives a notice of default or notice of trustee sale, they should consider hiring a litigation attorney to investigate the lender for fraud.
Hiring litigation attorneys to sue a mortgage lender for fraud is a proven strategy for saving the home. California foreclosure laws are designed to stop lenders that lie to homeowners. Knowing when to take legal action is not easy. Here are the top five questions to ask if you think you may need legal help to stop foreclosure:
Top Five Questions to Ask Before Suing Your Lender for Mortgage Fraud
1. Is the lender moving forward with foreclosure during the modification process?
In California, “dual tracking” is a common violation. When a lender is offering to modify a loan, all foreclosure action must stop. If you are in the process of applying for a modification and the lender sends a notice of default or notice of trustee sale, you should immediately call a lawyer.
2. Is the lender in contact and offering to help save the home after you missed payments?
In California, lenders are required to contact homeowners before starting the foreclosure process. If you have missed mortgage payments and the lender sends a notice of default or notice of trustee sale without contacting you first, you should immediately call a lawyer.
3. Have you filed bankruptcy in the past 7 years?
A skilled foreclosure lawyer will be able to advise regarding the best legal strategy to save your home. It is possible to file a lawsuit when the lender violates the law, but a bankruptcy may also be a good option for stopping a foreclosure. Some clients may qualify to file bankruptcy and make monthly payments in a court-approved plan to keep their homes.
4. Can you afford to stay in the home?
As a rule of thumb, litigation lawyers can stop a foreclosure, but saving the home largely depends on the income of the borrower.
5. Can you afford litigation – paying legal fees, costs, etc.?
This is a legitimate concern when you want to gauge affordability of your lawyer. Some litigation lawyers charge hourly fees, others charge a flat monthly fee or a combination of monthly fee and a contingency fee. Filing a lawsuit against a lender is a lengthy process that can be very expensive. Make sure that you ask about fees and costs when talking to a foreclosure attorney, and make sure that you read any agreement before hiring the lawyer.
We Sue Lenders for Mortgage Fraud
We offer free legal advice, and we strive to make our services available to homeowners who cannot afford to pay thousands of dollars to save their home. If you believe that your lender has lied to you or is committing mortgage fraud, you should immediately call our office (818) 254-8413 and speak with our experienced mortgage foreclosure attorney to determine your best options to fight foreclosure.