If your income takes a hit or your financial circumstances change, you may have a hard time keeping up with your mortgage. Unfortunately, your lender may start the foreclosure process if you fall too far behind on your mortgage. Getting a foreclosure notice can be very frightening, but there are steps you can take to help you keep your home.
If you received a foreclosure notice, contact our Irvine foreclosure defense attorneys today at (949) 570-5025 to schedule a consultation!
# 1: Seek Legal Guidance
With proper legal counsel, many homeowners are able to avoid losing their homes or work out a favorable arrangement with their lender. Before getting started, it is important to go through every step of the foreclosure process with an experienced attorney. An attorney can guide you through the process to maximize your chances of keeping your home.
#2: Contact Your Bank or Mortgage Lender
Soon after receiving your foreclosure notice you should contact your bank or mortgage company. You should verify that the foreclosure notice was in fact sent by your lender. This is a chance for you to ask questions and get more information.
#3: Compose a Hardship Lender
It is possible that your lender will help you if you’ve suffered financial hardship. A financial hardship occurs when you’ve lost your job or have suffered a serious illness that has kept you from working and making monthly payments on your mortgage.
You can explain your circumstances by writing a hardship letter. Your lender will review your letter when deciding whether to modify your mortgage loan to one with a lower monthly payment.
#4: Send Paperwork
To prove that you have suffered financial hardship, you will need to make copies of your financial papers. This will include your last two paycheck stubs, your last two federal tax returns, your credit card statements, and statements from any student or personal loans you have.
You want to show your lender that while your monthly debt obligations have not changed, your gross monthly income has plummeted, making it impossible for you to pay your mortgage bill each month. Showing proof of this may get your lender to agree to reduce your interest rate and lower your monthly payments.
What Happens After I Receive a Foreclosure Notice?
Typically, your lender will issue a “Notice of Default.” This means that you will then have a grace period in which to pay the lender the amount owed or sell the property for less than its value. This is called a “short sale.”
If you and your lender can’t work out an agreement, the house will be sold to the highest bidder at auction. If the property doesn’t sell, you will be evicted, and your lender will assume ownership.
Learn more about the pre-foreclosure process here.
How Long Does the Foreclosure Process Take in California?
It generally takes no less than 120 days to process, and that’s the estimate for uncontested non-judicial foreclosures. Procedures may be longer if the borrower pursues litigation, files for bankruptcy, or seeks delays and adjournments of sales.
Irvine Foreclosure Defense Attorney
If you are facing foreclosure, you need an experienced attorney on your side. Foreclosure is a complex and unpredictable process, so guidance from skilled attorneys can greatly improve your likelihood of keeping your home. Our team at McFarlin LLP has the experience and knowledge needed to help you obtain your desired outcome. We can help to formulate a plan, work directly with your lender or bank, and take every legal step necessary to help you from start to finish. Let our team guide you through the process to help you keep your home.
Contact us today at (949) 570-5025 to schedule a consultation!