The California Home Owner Bill of Rights law [SB900] requires the lender to send a letter offering assistance to a borrower prior to foreclosure when a borrower is late on mortgage payments. The same law also protects borrowers from harassment by the lender. Once a borrower receives a notice of foreclosure, or learns about the foreclosure sale date, it is best to contact our foreclosure defense attorney to discuss your situation.
There Are Several Options to Avoid Foreclosure:
File a lawsuit to stop the foreclosure
If the lender is using a non-judicial processes to foreclose (i.e. trying to complete the foreclosure outside of the court system), then you can put a stop to the foreclosure by filing a lawsuit against the lender challenging the foreclosure.
To prevail in the lawsuit against the lender, our attorneys must convince the court that the foreclosure should not take place. Our foreclosure attorneys file lawsuits on behalf of borrowers based on SB900 violations and mistakes that the lender commonly makes. We argue that the lender did not comply with the California’s foreclosure law requirements. There are several other grounds of argument including misrepresentation [when a lender tells the borrower that their documents are lost or their application for a modification was lost] and breach of contract [when a lender offers a modification and later revokes the offer or refuses to convert from a trial modification to a permanent modification]
Apply for Loan Modification
Another option to stop foreclosure is to apply for loan modification. If your application is accepted, the lender is usually restricted from dual tracking (where the lender proceeds with the foreclosure while also reviewing an application for a modification). A loan modification application, if successful, permanently stops the foreclosure as long as you keep up with the modified payments.
Moreover, the Californian Homeowner Bill of Rights prohibits dual tracking on foreclosures, further protecting the homeowner. Our foreclosure attorney will explore your rights under the California foreclosure laws and Federal laws to stop the foreclosure.
Options to Avoid Foreclosure Immediately
A borrower can also stop a foreclosure by filing for bankruptcy. This has proven very effective even when a notice of foreclosure has been served. Once a borrower files for bankruptcy, an automatic stay goes into effect that functions as an injunction, effectively stopping and prohibiting foreclosure. In addition, filing for bankruptcy eliminates debts; this method has helped many people save their homes from foreclosure.
There are many other benefits to filing bankruptcy, such as stripping second liens, getting rid of HELOCs, stopping automobile repossessions, stopping wage garnishment, getting rid of IRS debt more than 3 years old, and wiping out all personal loans, credit card loans and medical bills. In addition to stopping foreclosure, bankruptcy often benefits a borrower to regain control of their finances and get back on their feet.
Deed in Lieu of Foreclosure and Short Sale
A borrower can also stop a foreclosure by requesting a Deed in Lieu or Short Sale. A lender must approve a Deed in Lieu of Foreclosure and Short Sale. In either instance, a borrower must take steps to make sure that they do not have liability for the loan after the deed in lieu or the short sale is complete. It is always best to consult with an attorney to discuss the best options for avoiding foreclosure.
Contact a foreclosure attorney today
If you’ve been served with a notice of foreclosure, a notice of default or a notice of trustee sale, you need to take action! Contact the foreclosure attorneys at Consumer Action Law Group today: (818) 254-8413 and we will take action to put a stop to the foreclosure.