Most homeowners believe the reason they’re behind on mortgage payments is important to their lender, but it is not. Stopping foreclosure in California really has very little to do with why the homeowner stopped making payments. It is much more about exercising legal rights, and working within the lenders guidelines to get the sale date put “on hold” or cancelled altogether.
Here are some strategies for stopping foreclosure in California:
- Contact your lender and initiate a loan modification. Even if you think it might be a long shot, there is benefit to simply putting in the application under the Homeowner Bill or Rights (effective as of January 2013). Once the application is submitted, the law requires the lender evaluate the application before proceeding with foreclosure in most instances.
- Initiate a mortgage litigation action. If you have previously applied for a loan modification, with unsatisfactory results, you may have a good case for mortgage litigation. A lender certainly can deny a loan modification under the code, but the process by which they do so can be scrutinized and if not done adequately, a mortgage litigation action can be very effective for stopping foreclosure in California.
- Other Options. As most people know, bankruptcy typically stops foreclosure in California, this will be an effective option for most homeowners who haven’t filed a previous case. Also, if the option of selling the property is considered, a short sale will, in most cases, is an effective strategy for stopping foreclosure in California as well.
To discuss these, and other important strategies for foreclosure defense in California, McFarlin LLP offers prospective clients a free foreclosure consultation with a foreclosure defense attorney. Call us today to set up a time to talk at (888) 728-0044.