How to Stop Foreclosure
Homeowners in Los Angeles whose lives have been turned upside down by financial hardship stemming from unexpected job loss, a medical emergency or the death of a loved one may find it difficult to keep up with their mortgage payments. Our foreclosure attorneys at ibankruptcyattorneys.com understand how difficult it can be to face the threat of foreclosure, and we work hard to provide practical and effective debt-relief solutions for Southern California residents who have fallen on difficult times. If you and your loved ones are facing foreclosure, contact our foreclosure defense attorneys at ibankruptcyattorneys.com as soon as possible. We are committed to saving homes and properties from foreclosure in Los Angeles and throughout Southern California, and we can advise you on the options you have for stopping a foreclosure. With the right kind of assistance, nearly any foreclosure situation can be resolved, so don’t hesitate to call.
Compassionate and Honest Los Angeles Foreclosure Attorneys
If you are at risk for foreclosure, don’t lose hope. At ibankruptcyattorneys.com, we fight for the rights of individuals and families in crisis, providing creative solutions for even the most difficult financial situations. Whether you are facing the loss of your home or drowning in debt you can’t afford to pay, we believe that our clients deserve the very best legal counsel and representation, and we will work tirelessly to find a solution that helps you keep your home or get out from under crippling debt. When you hire our foreclosure defense team at ibankruptcyattorneys.com, you get a team of compassionate foreclosure attorneys who care about you, your family’s future, and your financial well-being. Contact our firm today to schedule a free initial consultation and find out how we can help.
Foreclosure in Los Angeles
Most people who buy a home take out a mortgage loan, which uses the purchased property as collateral. A mortgage is also known as a lien against a property, which means if you default on your mortgage loan, the lender can foreclose on your home. Once you fall behind on your mortgage payments, by one month, two months or more, it can be incredibly difficult to get enough cash together to catch up on the payments and stay current, especially if you are experiencing job loss, a serious illness or some other hardship. And until you do get caught up, the late fees, penalties and interest will continue to pile up, plunging you further and further into debt and making your situation seem more dire by the minute. We understand how stressful and traumatic the threat of foreclosure can be for you and your loved ones, and we will do everything in our power to help you keep your home and/or relieve your overwhelming debts. Thousands of hardworking Americans lose their homes to foreclosure every year and many homeowners in Los Angeles and across Southern California are struggling to stay current on their mortgage obligations and avoid losing their homes. If you are burdened by debt in Los Angeles and unable to pay your mortgage, you may still be able to avoid losing your home in a foreclosure.
Ways to Stop a Foreclosure from Happening
A foreclosure is a legal process in which a lender attempts to recover the balance owed on a mortgage loan by taking ownership and selling the property used as collateral on the loan. If you fail to make your mortgage payments, for whatever reason, it is likely that the lender will seize your home in an effort to recover a portion of the remaining balance on the mortgage loan. With people all over the country struggling with job loss, crippling debts, divorce and medical issues that keep them from working, foreclosure in not uncommon in the United States. Sadly, many homeowners facing impending foreclosure aren’t sure of what to do to avoid foreclosure, so they do nothing and simply hope for the best. We can assure you that that is a trap you don’t want to fall into. Taking immediate action is the best way to stop foreclosure and get your financial situation back on track. If you are more than a few months behind on your mortgage, it is possible your lender has already started foreclosure proceedings, which means you must act quickly to keep your home from being foreclosed on. The following are some meaningful steps you can take towards protecting your home against foreclosure.
One of the ways you can stop a foreclosure is by filing for bankruptcy. One of the biggest advantages of a Chapter 7 or Chapter 13 bankruptcy filing is that it automatically “stays” foreclosure proceedings, creditor harassment, wage garnishment and other distressing collection actions creditors may use to pressure you into paying the debts you owe. The automatic stay that goes along with a bankruptcy filing can delay the foreclosure process and give you the breathing room you need to contact your lender and make arrangements to catch up on your mortgage payments or explore other alternatives to foreclosure.
If you are being threatened with foreclosure, Chapter 13 bankruptcy can give you the opportunity to reorganize your debts, catch up on missed mortgage payments and repay your creditors through a court-approved repayment plan lasting three to five years. If you have a second or third mortgage on your home, Chapter 13 bankruptcy may even allow you to “strip” off the junior liens on the property, recategorize the debt as unsecured and discharge it at the end of your repayment plan.
A Chapter 7 bankruptcy filing will temporarily stop a foreclosure sale and allow you to discharge some or all of your unsecured debts, which may free up some extra cash to pay your mortgage payments and other secured debts. And most Chapter 7 filers in Los Angeles are able to protect their home using bankruptcy exemptions. However, since no payments are made in a Chapter 7 bankruptcy, you will have to find a way to continue making payments on your mortgage loan.
Another way to avoid foreclosure is by modifying the terms of your mortgage loan to make it easier to afford payments. This is known as loan modification, restructuring or a “workout” plan, and it can make your monthly mortgage payments easier to manage. Some of the ways you can make your mortgage loan more affordable is by negotiating a lower interest rate or reducing the principle balance on the loan. If you expect your financial situation to improve significantly in the near future, you can request a forbearance. However, if you are experiencing serious financial problems, a forbearance likely won’t prevent a foreclosure so much as postpone it. Since the theory behind a loan modification is that changing the terms of your mortgage loan will allow you to make consistent payments moving forward, the lender will likely consider the following factors before making a decision about approving a modification:
- Your income
- Financial hardship
- Account balances (checking and savings)
- Additional mortgages
- Additional debts (car loans, credit card debt, student loan debt)
If your home is worth less than what you owe on your mortgage loan and you are facing foreclosure in Los Angeles, you may be able to avoid foreclosure by negotiating a short sale. In real estate, a short sale is a property sale in which a lender agrees to allow the borrower to sell the property to a third party for less than what the borrower currently owes on the property. By allowing a short sale, the lender agrees to accept the sale proceeds and release the lien on the property, thus avoiding a costly and time-consuming foreclosure. In return, you have more control over when you vacate the property, and once the sale is complete, you can walk away without having to pay the remaining balance due on the loan. If you are considering a short sale in Los Angeles, you may be wondering if the lender will be able to come after you for the rest of the amount due on the mortgage loan, known as the “deficiency.” Fortunately for California homeowners, it is against the law for lenders who agree to a short sale to hold the borrower liable for the deficiency resulting from the short sale.
If your home is “underwater,” meaning you owe more on your mortgage loan than the property is worth, and a foreclosure is inevitable, you could consider signing over the deed to the property to the lender as an alternative to going through the foreclosure process. This is known as deed in lieu of foreclosure and it offers several advantages that make it an attractive solution for both parties. As a borrower, you can relieve yourself of a debt you can’t afford to pay while avoiding a foreclosure and the negative impact it can have on your credit. The lender can take control of the property, write off the debt and avoid the expense and delay associated with the foreclosure process. Deficiency judgments are also a concern with Los Angeles deed in lieu agreements. However, most lenders who agree to a deed in lieu of foreclosure will waive their right to pursue the borrower for future deficiency liabilities resulting from the deed in lieu agreement.
How a Foreclosure Defense Attorney Can Help
It is easy to feel powerless when faced with financial hardship and what seems like insurmountable debt, but there is almost always a way to get the results you want, whether that means a loan modification, short sale, deed in lieu, bankruptcy or some other debt-relief solution. Many of these alternatives to foreclosure require you to act quickly, which is where a knowledgeable foreclosure defense attorney comes in. A reputable attorney who specializes in foreclosure defense can provide you with detailed information about each option available to you and advise you on the best course of action for your specific financial situation. Our attorneys will stand by your side through every step of the process, guiding you towards a satisfactory resolution.
We know that banks and other lending institutions are not always willing to work with borrowers, especially if it means accepting less than the full amount they are owed on your mortgage loan. However, with a little patience, persistence and negotiation by a skilled foreclosure attorney, lenders often come to terms with the fact that agreeing to a loan modification or negotiating a short sale or a deed in lieu of foreclosure and closing out your account is a more favorable alternative to enduring the expense of a foreclosure or losing it all in a bankruptcy proceeding. No matter what combination of factors led to the foreclosure you are facing, we can help you find the strategy or combination of strategies that best suits your needs and your financial goals.
Find Out How iBankruptcyAttorneys.com Can Help
Stopping a foreclosure isn’t easy. It helps to have excellent negotiation skills as well as in-depth knowledge of the laws in California pertaining to foreclosures and fair debt collection practices when searching for the solution that is right for you. If you have fallen behind on your mortgage payments in Los Angeles and you want to know how to avoid a foreclosure, it is a good idea to discuss your debt-relief options with a knowledgeable foreclosure defense attorney licensed to practice in California. At ibankruptcyattorneys.com, it is our number one goal to help you save your home and get your finances back on solid footing, whether that means modifying the terms of your mortgage loan or using some other legal remedy to make your mortgage more affordable. If your mortgage has become unmanageable and you want to give up the property, we can help you negotiate a short sale or a deed in lieu of foreclosure agreement. If you want to discharge your debilitating debts and get a fresh start, we can guide you through the process of filing for bankruptcy. However impossible your situation may seem, our Los Angeles foreclosure attorneys will work tirelessly to protect your best interests and help you get the outcome you want.