Many homeowners struggle to keep up with mortgage payments and fall behind because of sudden job loss or illness. In California, there are several options available to stop a foreclosure. Some of the ways to stop foreclosure are listed below:
- Litigation – If there is evidence of illegal foreclosure, our attorney will file a lawsuit and stop the foreclosure to save your home. The most common form of Illegal foreclosure is called “Dual Tracking” when the lender does not stop the foreclosure process while reviewing a borrower for a modification.
- Filing for Bankruptcy – Filing bankruptcy will stop the foreclosure process immediately and give you time to catch up with the mortgage payments over the next 5 years.
- Apply for a loan modification – It is best to apply for a loan modification yourself, or with help from a non-profit that does not charge for their services. Under the foreclosure laws in California, when a borrower applies for a modification, the foreclosure process must be stopped and suspended until there is an outcome.
- Short sale – For a borrower willing to walk away from their home, a short sale will typically buy time and stop foreclosure until the lender has made a decision. Our attorney will discuss your options and refer you to an experienced real estate agent to help you process the short sale.
- Deed in Lieu – We will negotiate with the lender for an agreement with the lender to stop the foreclosure process and deed the property back to the bank.
After missing more than three mortgage payments, your lender can legally foreclose on your property. Before the foreclosure process starts, the lender is required by California law to offer foreclosure assistance: The lender cannot legally foreclose if they do not first contact the borrower to discuss alternatives to foreclosure.
In California there are very strong foreclosure laws passed in 2012 to help avoid foreclosure. The California Homeowner Bill of rights [SB900], effective in January 2013, protects homeowners from foreclosure while they are modifying their mortgages or waiting for approval of a short sale by the lender. Under the laws in California, mortgage lenders must respect the borrower’s rights or face strong penalties, with statutory damages up to $50,000. If your lender is violating your rights, our foreclosure attorney will file a lawsuit to stop illegal foreclosure. Once a judge signs the order to stop the sale, the foreclosure cannot go forward. Our foreclosure attorneys will advise you regarding different ways to avoid foreclosure and what is the best option for you.
The Law prohibits Dual Tracking, lenders cannot continue with the foreclosure process when a modification application is pending or a short sale has been approved. When a borrower requests a foreclosure avoidance alternative, the mortgage lender must provide a single point of communication. The mortgage company must provide one or more ways to communicate with the borrower. It is important for the borrower to keep all emails and letters for any future lawsuits. If the borrower is violated in any of these matters they can file an injunction and sue for any damages. Our foreclosure attorney can help you with any of these matters.
If you applied for a loan modification under foreclosure assistance from your loan issuer and were denied because you didn’t meet the qualifications you can appeal. You must appeal within 14 days of your denial date. The mortgage company must give a reply in writing within thirty days of your appeal. Our foreclosure lawyers can help you in all these matters.
Our Los Angeles bankruptcy attorney can help you with Filing a Chapter 7 or Chapter 13, which will stop the foreclosure immediately. Chapter 7 is a short term solution, compared to Chapter 13 which allows you to pay the past due payments in a repayment plan. You will need to talk to our Bankruptcy Attorney to help you decide if filing bankruptcy makes sense for you.