Every day, thousands of homeowners in California face foreclosure. The foreclosure laws in California require lenders to send a notice of foreclosure to a borrower who defaults on a loan. If you have received a notice of default or notice of trustee sale, it is best to call our foreclosure attorney and learn how to stop a foreclosure.
There are several ways of stopping a foreclosure. You can apply for a loan modification, short sale, deed in lieu, or a forbearance agreement directly with your lender and they should stop the foreclosure process; at least temporarily. You can also file a bankruptcy to immediately stop a foreclosure sale.
If your lender is not offering any alternative to foreclosure or any type of assistance, our foreclosure lawyer will research your case to see if it makes sense to take legal action to save your home. Lenders are required to follow the California foreclosure laws very strictly and to give borrowers the opportunity to pursue alternatives prior to selling a home at auction.
In January 2013, Governor Gerry Brown enacted the Homeowner Bill of Rights [SB 900] to help borrowers in California to avoid foreclosure. The law was designed to stop mortgage fraud practices that were allowing lenders to foreclose without first trying to help borrowers in distress. Governor Brown himself had this to say – “People should not have to suffer due to the abusive tactics of lenders who would push a foreclosure behind an unsuspecting homeowner’s back”.
Here are the benefits of the California Homeowners Bill of Rights:
- Prohibits Dual Tracking: Lenders cannot move forward with foreclosure without first contacting a borrower and offering an alternative. Lenders cannot continue with the foreclosure process while simultaneously offering to provide an alternative [such as a loan modification, short sale, deed in lieu, or a forbearance agreement].
- Creates a single point of contact with homeowners in loan modification negotiations.
- Expands notice requirements to borrowers prior to taking action or pursuing foreclosure.
- Allows injunctions against foreclosure violations to be corrected and permits civil penalties against servers who file multiple, inaccurate mortgage documents as well as engage in willful or reckless law violations.
Federal laws are also in place to protect borrowers against unfair lending practices that are associated with residential mortgages:
- TILA (Truth in Lending Act)
- HOEPA (Home Ownership & Equity Protection Act)
These laws allow borrowers to sue lenders for money damages. That includes a refund on any financing costs that you’ve paid. These laws also let you cancel the mortgage under specific circumstances [although extremely rare].
Filing a lawsuit requires violations of the law that are serious enough to warrant a judge to take action. Inconsequential errors are typically not actionable. To put it simply, if the violation of the lender didn’t harm you there may not be any actual damages. An experienced foreclosure attorney will be able to advise you on this. Our foreclosure lawyers take the time to research your claims and tell you whether you have a case or not. If you are facing foreclosure, you should call today and talk to one of our foreclosure lawyers for free, just to know what your options are.
Contact our foreclosure attorney All you have to do is contact us and we’ll show you how to Stop a Foreclosure.