How to Stop Foreclosure
Facing imminent foreclosure is a heartbreaking reality for many homeowners in Los Angeles and throughout Southern California, but even if you have fallen behind on your mortgage payments and a foreclosure sale seems unavoidable, there are still steps you can take to stop the foreclosure and save your home, and our attorneys can help. The best way you can save your home from foreclosure in Los Angeles is to be proactive and actively negotiate with the lender to delay or stop the foreclosure process so you can keep your home or property. At Resnik Hayes Moradi LLP, our mortgage foreclosure defense attorneys understand how devastating foreclosure can be, and we will do everything in our power to help you understand your rights and avoid a foreclosure on your property. If you are considering hiring a foreclosure defense attorney, or if you want to know how to stop foreclosure in Los Angeles or the surrounding area, contact Resnik Hayes Moradi LLP today to discuss the possible alternatives to foreclosure.
Reputable Los Angeles Foreclosure Defense Attorneys
If you are facing foreclosure in Los Angeles due to unpaid mortgage payments, your situation is not hopeless. Our attorneys at Resnik Hayes Moradi understand that you have invested a great deal of time, money and work into your home, and we want to help you do whatever it takes to avoid foreclosure, whether that means pursuing a mortgage lender lawsuit, applying for a loan modification, entering into a short sale or filing for alternatives such as bankruptcy. Our reputable attorneys at Resnik Hayes Moradi LLP have experience handling all types of foreclosure cases in Los Angeles and throughout Southern California, and we will take the time to personally evaluate your case and determine the best course of action to stop foreclosure in your particular situation. By providing a free initial consultation, we can offer you the opportunity to meet with an experienced Los Angeles foreclosure defense attorney and determine whether you have a valid claim against your lender or the means to stop a foreclosure proceeding, with no fee or obligation on your part. There is no substitute for speaking with an attorney who specializes in foreclosure, debt relief and bankruptcy in Los Angeles, and the sooner you contact our law firm, the sooner we can put our legal expertise to work for you.
What is Foreclosure?
Foreclosure is a legal process by which a lender attempts to recover the balance due on a mortgage loan. The foreclosure process in Los Angeles typically begins after a homeowner falls behind on his or her mortgage payments and involves the lender taking possession of the property used to secure the loan and forcing its sale to pay back the amount due on the loan.
California Homeowner Bill of Rights
The state of California’s Homeowner Bill of Rights was originally signed into law in 2012 after homeowners across the state were unfairly and unlawfully forced out of their homes in the wake of the Great Recession and the subsequent foreclosure crisis. The original bill expired in January 2018, but the bill that took its place established similar important protections for homeowners pursuing alternatives to foreclosure. For instance, under the new Homeowner Bill of Rights, when a homeowner requests a foreclosure prevention alternative, such as loan modification, the lender is required to establish a single point of contact to prevent the homeowner from getting lost amongst the other homeowners seeking alternatives to foreclosure. The bill also prohibits lenders from proceeding with the foreclosure process after a homeowner has been approved for a loan modification, so long as the homeowner observes the terms of the modification. Furthermore, pursuant to the Homeowner Bill of Rights, the state of California has the right to sue lenders and banks up to $50,000 for violating the laws contained within the bill.
How to Stop a Foreclosure Sale in Los Angeles
Foreclosure can be a lengthy, complicated and emotionally and financially devastating process for homeowners and their families, and if you hope to stop a foreclosure proceeding, it is imperative that you have the legal expertise of a skilled Los Angeles attorney on your side who can help you navigate the process of stopping a foreclosure sale. If you find yourself unable to afford your mortgage payments, the foreclosure process won’t begin until you have missed several payments, typically three or four, which gives you time to consider some alternatives to foreclosure that may allow you to keep your home. The following are some of the alternative options homeowners in Los Angeles can pursue to prevent a foreclosure on their property.
Attempting to negotiate with the lender may seem like an obvious first step to stopping foreclosure, but it’s one that many homeowners never even try. If you are falling behind on your mortgage payments and you think you could end up facing foreclosure, you can contact your lender directly and try to work out a more manageable payment arrangement. Some lenders are more open to working with borrowers who have a valid reason for not making their mortgage payments, while others have no interest in any solution other than foreclosure.
One of the first steps you can take to stop foreclosure is to apply for a loan modification, which is one of the easiest and most straightforward ways to avoid foreclosure. The process of loan modification involves renegotiating the terms of your mortgage loan so your payments are more affordable, and if you can get such a modification approved by the mortgage lender and stay current on the modified loan payments, you may be able to stop the impending foreclosure proceedings permanently.
Mortgage Lender Lawsuit
Filing a lawsuit against the mortgage lender to challenge the foreclosure sale is another way you can try to stop foreclosure, though this strategy will only work if the foreclosure process is nonjudicial, or taking place outside of the court system. In order to win your lawsuit against the lender and successfully stop a foreclosure proceeding, you must prove that the foreclosure should not proceed due to one or more of the following issues:
- The mortgage lender cannot prove it owns the promissory note,
- The lender violated the California Homeowner Bill of Rights,
- The lender failed to comply with California mediation requirements,
- The lender did not follow the required steps in the foreclosure process, or
- The lender made some other serious error.
Loan Forbearance Agreement
If you are experiencing a temporary hardship that prevents you from making your mortgage payments on time or at all, you may qualify for a forbearance, in which you and the mortgage lender would have to come to an agreement allowing you to make lower monthly payments for a period of time.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is a process by which a borrower voluntarily transfers the property title to the lender in order to prevent the lender from pursuing foreclosure. This process is common in situations where the amount due on the mortgage loan far exceeds the current value of the property and the borrower decides to just walk away. In return for the deed to the property, the lender will usually agree to release the borrower from any future obligation to pay the amount due on the loan.
Homeowners with good credit who are not yet late on their mortgage payments may have the option of refinancing their mortgage loan, a process by which borrowers can replace their current mortgage loan with one that offers more favorable terms, such as a lower interest rate. In essence, refinancing a mortgage loan means you take out a new loan to pay off your existing debt, thereby replacing the terms of your old mortgage loan with the updated loan agreement.
If you are unable to keep up with your mortgage payments, your lender will issue you a “Notice of Default,” after which you have a certain amount of time to pay the lender the amount you owe or sell your home for less than it’s worth, which is known as a “short sale.” Homeowners in Los Angeles who are experiencing financial hardship and who owe more to the bank than their home is worth may turn to a short sale to avoid a foreclosure or bankruptcy filing.
If the foreclosure sale has already been scheduled and you don’t have a lot of time to pursue other options, you can stop or delay the sale immediately by filing for bankruptcy. With a bankruptcy filing in Los Angeles comes the “automatic stay,” which is an injunction that prohibits the lender from foreclosing on your home or pursuing other collection actions against you for a period of time. Filing for bankruptcy can give you the breathing room you need to communicate with your lender and explore alternatives to foreclosure. If you file for Chapter 7 liquidation bankruptcy, you can buy some time by delaying the foreclosure sale for months, or if you want to keep your home and you meet the eligibility requirements, you can file for Chapter 13 reorganization bankruptcy instead. With Chapter 13 bankruptcy, you may even be able to “strip off” a second or third mortgage and recategorize the debt as unsecured, which you may not have to pay back at all.
How Our Attorneys Can Help
Homeownership is a big part of the American dream, but for Los Angeles homeowners who experience an unexpected financial crisis, such as losing a job or suffering a serious illness or medical condition, that dream can be crushed by the threat of foreclosure. Homeowners put a lot on the line when they take out a mortgage loan with the promise of paying it back, and a sudden drop in housing prices or unforeseen economic downturn can leave a borrower in a difficult financial situation, possibly with a home that is underwater and no clear way to keep up on mortgage payments and avoid foreclosure. Homeowners who contact Resnik Hayes Moradi LLP are typically looking for ways to save their home from foreclosure, or are trying to determine whether it makes sense to fight for their home or enter into a short sale to avoid foreclosure. We have helped homeowners in Los Angeles and throughout Southern California stay in their homes and we can help you put a stop to foreclosure, too.
If you are facing an imminent foreclosure sale and you are considering filing for bankruptcy, filing a lawsuit against the mortgage lender, or taking any other action to stop the foreclosure, it is in your best interest to contact a knowledgeable foreclosure defense attorney for legal help. Having an experienced legal representative on your side is the key to avoiding foreclosure, and the best way to choose the right foreclosure defense attorney to represent your case is to make sure the attorney has a clear understanding of foreclosure laws in California and how these laws can work in your favor. Our seasoned foreclosure defense lawyers at Resnik Hayes Moradi LLP have represented clients in the Los Angeles, Riverside, San Fernando Valley, San Bernardino and Orange County communities looking for an alternative to foreclosure, and we will help you find the best possible solution to your specific financial situation. Contact our firm today to schedule your free initial foreclosure defense consultation with our knowledgeable Los Angeles attorneys.
Contact Our Los Angeles Foreclosure Defense Attorneys Today
Foreclosure is something that no homeowner wants to have to consider, but it is an unfortunate reality for many homeowners in Los Angeles and the surrounding area who find themselves facing mortgage payments they can’t afford to pay. Whether you are currently in foreclosure, facing foreclosure or falling behind on your mortgage payments, it is imperative that you understand how the foreclosure process works and what you can do to stop or delay foreclosure proceedings. At Resnik Hayes Moradi LLP, our Los Angeles foreclosure defense attorneys have a clear understanding of the foreclosure process in California, the consequences of foreclosure and the defenses available to you as a homeowner facing foreclosure on your property. Consult our reputable team of attorneys as soon as possible to find out how we can help you put a stop to foreclosure proceedings.
“The bankruptcy attorneys at Resnik Hayes Moradi LLP provided us the peace of mind I so desperately needed. I was not sure what to do and I felt like I was at the end of my rope. They were there the entire step of the way and gave me the necessary information I needed to make the right choice for my family.” – Dave B.