A foreclosure attorney is an ideal person to hire to stop foreclosure. They can stop a foreclosure sale even if there is a default in mortgage payment.
Los Angeles, CA November 19, 2015 — A Foreclosure involves a civil lawsuit in which a bank, Mortgage Company or other lien holder engage in a civil lawsuit asking the court to issue an order to sell your property by way of the auction in order to satisfy a defaulted debt or mortgage payment. The result of this foreclosure is the loss of not just the property but any rights in that property as the mortgage holder gain total ownership of the property.
Before now, once there was a default in mortgage payment by mortgagors, the mortgage company often times called the mortgagee could claim automatic ownership of the property. With the development in the law, time is now given to mortgagors to pay off their mortgages before there can be any claim on the property by the mortgagee. Any default in the payment thereafter and the subsequent claim on the property due to this default is what foreclosure sale is all about.
How to stop a foreclosure
Though unknown by many, it is possible to stop a foreclosure sale even if there is a default in the mortgage payment. Below are the ways to stop foreclosure:
Filing for Bankruptcy
Filing for Chapter 7 or Chapter 13 bankruptcy stops the foreclosure sale date immediately [at the time of the first filing].
The time while the bankruptcy is pending can be used as a time to negotiate with the bank for modification of the loan terms.
Filing a Lawsuit
Filing a lawsuit for illegal foreclosure can also stop the foreclosure sale date. The lawsuit must have valid grounds, such as a violation of the California foreclosure laws [SB900] or breach of contract, negligence, or misrepresentation. Lawsuits filed for illegal foreclosure often lead to negotiations with the lender to re-start loan payments and wipe out the arrears. In this case, a good foreclosure lawyer is strongly advised for drafting a filing a complaint to increase the chances of saving the home and stopping the foreclosure.
There is no need to hire a foreclosure lawyer for the purpose of modifying your loan in an effort to stop a foreclosure sale. The decision to modify a loan is based on the income and the arrears of the borrower. It is in the best interest of the borrower to work directly lender in order to apply and submit financial documents needed to get the loan modified.
Deed-in-lieu of foreclosure
In deed-in-lieu of foreclosure is an agreement in which all interests in the property are transferred back to the lender to forgive any default payments and avoid a foreclosure sale.
A deed-in-lieu once completely releases the borrower from the debt and can reduce the time and cost of repossessing the property through a trustee sale.
A short sale is a last resort if the intention of the borrower is to save the home. Here, the lender accepts less than the amount owed for the balance of the loan.
A short sale is considered to be an alternative to a foreclosure sale where the homeowner stays in the property and cooperates with the lender to sell the home and leave it in good condition, with some relocation fee paid to the homeowner at the completion of the sale.
It is noteworthy to mention here that hiring a good foreclosure lawyer is the most important step to stop foreclosure sale. Once a foreclosure sale notice is received, the next step is very important. It is best to contact a foreclosure lawyer who will provide the best plan and method to stop the foreclosure sale and save the home from foreclosure.
Anyone who wants to hire a foreclosure attorney to stop foreclosure sale can contact Consumer Action Law Group. They can be reached at (818) 254-8413 or visit their website, http://ConsumerActionLawGroup.com.
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