oing through the foreclosure process can feel a lot like you’re being attacked by your mortgage company. In most cases, mortgage companies stand to make more profit off of selling your home at auction than modifying your loan so that you can make reasonable and affordable payments. Even if you are behind on payments, and you have been denied for a loan modification, there are still foreclosure defense strategies to help save your home.
The California’s Homeowner Bill of Rights now provides homeowners with more options for foreclosure defense than ever before. While the basic actions that you can legally take remain the same as they’ve been in California for years, the laws behind those options have improved for the homeowner. Many of these new laws apply specifically to how mortgage companies issue notices and communicate with homeowners during the pre-foreclosure process.
Despite these new laws being very clearly laid out for the lenders, wrongful foreclosures are still occurring. People in the middle of the loan modification process aren’t given a single point of contact, or are victims of “dual-tracking,” which occurs when a lender proceeds with foreclosure despite the debtor being in review for a loan modification. These are just a couple of examples of how the banks are still illegally foreclosing on homeowners in financial hardship.
Option 1: Sue the Mortgage Company
The most effective foreclosure defense strategy is to sue the mortgage company. Known in the legal world as “mortgage litigation,” lawsuits against lenders get the best results for our clients. Unfortunately, many lenders simply stop responding to homeowners that are facing foreclosure, and don’t take any action until a lawsuit is filed against them. Once they know that they are facing legal action from the best foreclosure lawyers in Los Angeles, they typically settle out of court for our clients.
The earlier in the foreclosure process that a client decides that they want to sue their lender, the more time our foreclosure attorney has to prepare claims against them. We scour the paperwork that our clients provide, as well as use our legal resources to discover everything we can about how the mortgage company has interacted with the homeowner.
Unfortunately, there are also times when homeowners call us with just 24 or 48 hours until the trustee sale date, and there simply isn’t enough time to file a lawsuit against the mortgage company.
Option 2: File Bankruptcy to Stop Foreclosure
When there simply is not enough time left to enter into mortgage litigation to stop foreclosure, filing for bankruptcy is the second best way to keep your home. Bankruptcy has been used as a foreclosure defense strategy for years, as the sale can be stopped as soon as paperwork is filed with the court. While many are hesitant to file bankruptcy because they think it will hurt their credit – the truth is that most of the time the homeowner’s credit is already damaged and can only benefit from filing.
Both Chapter 7 and Chapter 13 Bankruptcy will stop foreclosure in California, but it is important to consult an attorney prior to filing. While many people think that they can file pro bono, the procedural aspects of filing bankruptcy are often overlooked by individuals who don’t know the laws like an attorney.
Our Los Angeles Foreclosure Attorneys
Consumer Action Law Group has the very best foreclosure attorneys in Los Angeles, and we’ve won many lawsuits against mortgage companies for our clients. While other firms may only be able to offer one option, our foreclosure defense attorney offer the gamut of legal strategies for our clients. Call today for a free consultation to find out how you can stop the foreclosure process and save your home.