Los Angeles, CA; 08, May 2015: The California Home Owner Bill of Rights law [SB900] requires the lender to send a letter offering assistance to a borrower prior to foreclosure when a borrower is late on mortgage payments. The same law also protects borrowers from harassment by the lender. Once a borrower receives a notice of foreclosure, or learns about the foreclosure sale date, it is best to contact an experienced foreclosure attorney to discuss the situation and options available.
Legal Ways of Stopping a Foreclosure
File a lawsuit to stop the foreclosure
If the lender is using a non-judicial processes to foreclose (i.e. trying to complete the foreclosure outside of the court system), an individual can stop foreclosure by filing a lawsuit against the lender to challenge the foreclosure.
To prevail in the lawsuit against the lender, borrowers must convince the court that the foreclosure should not take place. Experienced foreclosure attorneys file lawsuits on behalf of borrowers based on SB900 violations and mistakes that the lender commonly makes. Foreclosure lawyers argue that the lender did not comply with the requirements under California’s foreclosure law. There are several other grounds of argument including misrepresentation [when a lender tells the borrower that their documents are lost or their application for a modification was lost] and breach of contract [when a lender offers a modification and later revokes the offer or refuses to convert from a trial modification to a permanent modification]
File for Bankruptcy
A borrower can also stop a foreclosure by filing for bankruptcy. This has proven very effective even when a notice of foreclosure has been served. Once a borrower files for bankruptcy, an automatic stay goes into effect that functions as an injunction, effectively stopping and prohibiting foreclosure. In addition, filing for bankruptcy eliminates debts; this method has helped many people save their homes from foreclosure.
There are many other benefits to filing bankruptcy, such as stripping second liens, getting rid of HELOCs, stopping automobile repossessions, stopping wage garnishment, getting rid of IRS debt more than 3 years old, and wiping out all personal loans, credit card loans and medical bills. In addition to stopping foreclosure, bankruptcy often benefits a borrower to regain control of their finances and get back on their feet.
Apply for Loan Modification
Another option to stop foreclosure is to apply for loan modification. If a borrower’s application is accepted, the lender is usually restricted from dual tracking (where the lender proceeds with the foreclosure while also reviewing an application for a modification). A loan modification application, if under review by the lender, stops the foreclosure as long as home owners keep up with the modified payments.
Moreover, the Californian Homeowner Bill of Rights prohibits dual tracking on foreclosures, further protecting the homeowner. Experienced foreclosure attorneys will assert all of the borrower’s rights under the California foreclosure laws and Federal laws to stop the foreclosure.
Deed in Lieu of Foreclosure and Short Sale
A borrower can also stop a foreclosure by requesting a Deed in Lieu or Short Sale. A lender must approve a Deed in Lieu of Foreclosure and Short Sale. In either instance, a borrower must take steps to make sure that they do not have liability for the loan after the deed in lieu or the short sale is complete. It is always best to consult with an attorney to discuss the best options for avoiding foreclosure.
Recommend Foreclosure Attorney
If home owners have been served with a notice of foreclosure, a notice of default or a notice of trustee sale, it is best to take legal action! Contact the foreclosure attorneys at Consumer Action Law Group at (818) 254-8413 and their experienced foreclosure and bankruptcy lawyers will take action to put a stop to the foreclosure and save the home immediately.
About Consumer Action Law Group:
Consumer Action Law Group is a law firm dedicated to help consumers in consumer-related matters or consumers that experienced fraud and scam. Attorneys in the team are knowledgeable and experienced in the areas of eliminating debt, mortgages fraud, auto fraud, and foreclosures. They have direct experience in consumer fraud matters and helping consumers who are facing financial crisis, foreclosure, issues with employers, and problems with auto dealers.