California homeowners facing foreclosure have many options to stop notice of trustee sale.
A Notice of Trustee Sale [NTS] refers to a notice issued by the lender to let you know that they will auction your property to recover the amount of money you owe on the loan. In addition to issuing a copy to the property owner, the notice is published in the local newspaper and displayed at the courthouse. The notice contains the contact information of the trustee entrusted with the sale and is intended to serve as the final auction notice or final foreclosure notice and last warning to take action before the home is sold.
How to Stop Notice of Trustee Sale
Here are some methods that can be used to stop a notice of trustee sale:
Filing Bankruptcy
When a homeowner receives the NTS, it is possible to automatically stop the sale by filing for bankruptcy. Filing bankruptcy requires very specific steps and preparation that are best handled by an experienced foreclosure attorney. Bankruptcy can offer immediate protection from foreclosure, however, it is a complicated legal process that can have long-lasting effects, both beneficial and detrimental depending on the borrower’s circumstances.
Filing a Lawsuit; Lender Misconduct
Any experienced foreclosure attorney can file a lawsuit to stop a foreclosure if it is apparent that the lender violated the agreement or negotiated in bad faith including failure to keep promises to you, failure to call back, and failure to give notifications in time, thus giving you insufficient time to address them. Our foreclosure attorneys can effectively argue your case to get a court order stopping foreclosure.
Modifying; Compelling Hardship
Applying for a modification based on a compelling hardship can also stop a trustee sale and save your home. Circumstances that stop a trustee sale include factors such as illness and job loss. Documented proof is usually required to verify the kind of hardship you are experiencing, but this option is not a legal course of action and does not require an attorney. To be certain that the sale will be stopped it is best to contact a foreclosure attorney that will take legal action instead of relying on the lender to modify.
Short sale
In the event that you receive a notice of trustee sale, your may request a short sale to stop foreclosure. For a short sale approval, you must find a third party to purchase the property and the lender must agree to accept less than the total amount of debt that is still owed. The lender may agree to such an offer if the amount from the short sale is more than they expect from the trustee sale. In order to be approved for a short sale, the seller is required to submit an application that’s inclusive of a hardship letter, bank statements, most recent tax returns, proof of income, and financial statements.
Deed in Lieu
In the event that you receive a notice of trustee sale, you can also opt for a deed in lieu. This simply refers to the voluntary transfer of the title deed to the mortgage lender in exchange for the borrower leaving the home in good condition. Most lenders will require that you try to sell the property at least 90 days before they can consider approving your application for a deed in lieu.
Our foreclosure lawyers stop trustee sales and help you save your property. Our track record includes many lawsuits against various servicers and lenders such as Ocwen’s illegal foreclosure practices for dual tracking. Contact us today for more information.
