Legal Options to Stop Foreclosure on Your Los Angeles Home
“I’m innocent.” “I don’t care.” That exchange between Harrison Ford and Tommy Lee Jones in The Fugitive takes place daily between delinquent mortgage holders and lenders. Most homeowners think the reason they’re behind on mortgage payments matters to their lenders, but it seldom does.
Whether they come out and say it or not, the vast majority of mortgage lenders don’t care why homeowners might lose their homes, they just want to do their jobs — collecting payment or foreclosing.
To stop foreclosure in California, you need to focus on exercising your legal rights, and working within the lender’s guidelines to get the sale date put “on hold” or cancelled altogether, rather than delineating the reasons (illness, unemployment, divorce, etc.) why you’re so far behind in your payments.
And if you’re a California homeowner who has fallen behind in your payments due to any number of reasons, it’s essential that you seek legal counsel with an attorney who thoroughly understands California’s legal system and can work within the law and with your lender to forestall the process.
Again, we can’t stress enough that to Stop Foreclosure in the state of California you need to shift your focus away from justifying and explaining the causes for your delinquency and start collaborating with legal counsel and your lender to manage your situation.
Some basic strategies to protect your home in Los Angeles include the seemingly obvious – but often overlooked – option of contacting your lender to initiate a loan modification.
Obviously, its more effective to begin a conversation with your lender earlier in the process, when your financial situation is about to change due to job loss, medical expenses, etc., but before you’ve actually fallen behind in your payments. However, most of us tend to follow our instincts; we hide from our creditors when during a financial crisis, thinking of our lender as “the enemy” and hoping the whole situation will somehow fix itself and just go away.
So, if you’ve been avoiding the lender who holds your home mortgage, reach out to them now—the sooner the better.
And even if you’re several months behind in your mortgage payments and face losing your property, it’s almost always a smart move to put in an application under the Homeowner Bill or Rights, which sent into effect early in 2013. Once the application is submitted, in many cases, California law requires the lender evaluate the application before proceeding with seizing your property.
The economy continues to be tight and homeowners still find themselves falling behind in their mortgage payments. If you’re beginning to fall behind the foreclosure eight ball, it’s important to handle the situation directly, as tough as that can be. If you are thinking about filing bankruptcy in Los Angeles, or if you have an issue involving home foreclosure or another litigation issue, please contact our Los Angeles foreclosure attorneys today at (888) 728 0044. We offer free legal consultations.
While some homeowners overspend on luxury cars, boats, jewelry and second homes, most homeowners who are in default aren’t living a lavish lifestyle. If you’re facing foreclosure and think you’re living on a tight budget, take a second look by documenting your spending for two weeks to a month. You may find additional budget areas that can be cut. While following this process, at second glance some of the bills on your list might qualify as luxury items, and, obviously, you should discontinue that spending.
And remember, meeting your mortgage is more important than just about any of your other expenses. Late mortgage payments will hurt your credit more than anything else, even car payments. So do what you can to keep up. If you’ve lost your job, consider taking temporary work to make ends meet until you find another higher paying position in your field.
Other viable options include initiating a mortgage litigation action, short selling, and bankruptcy.
If you have previously applied for a loan modification, with unsatisfactory results, you may have a good case for initiating mortgage litigation action. While a lender can deny a loan modification under the code, they must follow strict guidelines; if the lender’s process is mishandled, a forced sale can be stopped.
In California, bankruptcy typically stops collection proceedings. So, this is an effective option for most homeowners who haven’t filed a previous case. Also, if you’re willing to consider selling your property, a short sale is often an effective strategy as well!
McFarlin LLP offers prospective clients a free consultation with a defense attorney specializing in the complicated field of foreclosure. Call us today to set up a time to talk at (888) 728-0044 to learn more about short sales, bankruptcy, and various forms of lender negotiations that can help postpone or even prevent you from losing your property under California law.
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