Southern Californians have to struggle through living in some of the most expensive places in the world. The cost per living across SoCal is among the highest in the country, and this makes it difficult for many homeowners to keep up with mortgage payments. A loss of income, stay in the hospital or other large expense that wasn’t anticipated can quickly put a family behind on their monthly payments with their lender. What can homeowners to do stop their mortgage company from turning late payments into a foreclosure situation?
The answer to this question varies with each homeowner and individual situation, but there are some common foreclosure prevention options that many of our clients have used. While no homeowner aims to get put into the foreclosure process after falling behind on payments, there may be options to get you help.
Our Southern California Foreclosure lawyers offer a free legal consultation to determine what your situation is, what options may be available for you, how much those options would cost, and how long those options would take. We can’t tell you which route would be best for you without hearing your story, but here are some options that others have used to stop foreclosure in California.
Mortgage Litigation – Sue The Lender
Many people who are currently going through foreclosure are in that situation due to a predatory loan, or misinformation from their bank at one point. Oftentimes, homeowners seeking a loan modification are told to fall behind on their payments for three months in order to qualify only to then be denied for lower payments and pushed into the foreclosure process. This is just one of many reasons why you may want to file a lawsuit against your mortgage company.
New California foreclosure laws took effect on January 1st, 2013, and are aimed at protecting consumers from many of the issues they faced with their mortgage companies in recent years. Unfortunately, some of the lenders still have not caught up to the new laws, and are still illegally foreclosing on homes in Southern California.
The California Homeowners Bill of Rights stops foreclosures from going through if the owner is in the process of a loan modification review, and demands that they be given a single point of contact during this process. This violation, among countless others, is enough to sue your lender and get the results you deserve.
Short Sale – Sell the Home Now
If approved by the lender, short-selling the home before foreclosure is an option that some decide to go with. This is often reserved for homeowners who have mortgages that are entirely underwater, and it is unlikely that they will reclaim their original value in the near future. As with most large transactions, there is a considerable amount of paperwork with legal jargon throughout which may require an experienced lawyer to make the deal go through.
Most times, families want to stay in their homes and choose not to go this route unless it is the only logical option based on their current financial situation.
Bankruptcy – Save the Home
Filing for bankruptcy is the only guaranteed way to stop a Trustee Sale Auction Date. Both chapter 7 and chapter 13 bankruptcy will do the job for you, but our foreclosure lawyers would need to learn more about your financial situation before suggesting how to file. While many people are afraid of the word “bankruptcy,” filing often results in the family being able to keep their home and move forward.
Stop Your Foreclosure Now
Consumer Action Law Group has the best Foreclosure Attorney in Southern California, and we can help save your home too. Call us today for a free consultation with our law firm.