Foreclosure Prevention Attorneys in Los Angeles
Legal Help for Avoiding Foreclosure
Saving homes and properties from foreclosure has always been the top priority
at Cal West Law. Over the last 25 years, we’ve saved over 7,000
homes on behalf of our clients. If you and your family are facing foreclosure,
all is not lost — we have several strategies we can use to help
you. Don’t let predatory lenders ruin your future as a homeowner.
Let us help.
One of the ways you can avoid foreclosure is through
Chapter 13 bankruptcy. Chapter 13 automatically stops foreclosure and allows you to reorganize
and consolidate your debts. This gives you a chance to catch up on your
missed mortgage payments.
Another way to avoid foreclosure is through loan modification. Also known
as restructuring, the idea of loan modification is to change the terms
of your mortgage to make it easier to pay. This can be accomplished by
lowering the interest rate, forbearance agreements, and principal balance
Following a decline in property value, a short sale can prevent foreclosure
in California. A short sale occurs when the lender agrees to accept a
sale price of the home at fair market value, rather than the full outstanding
balance on the mortgage. A short sale is a viable method of foreclosure
prevention because the lender agrees to take a loss and write it off.
This can stop mortgage foreclosure and avoid the negative impact on your
credit. It also gives you an agreement to follow, with a predictable date
to vacate the premises, rather than waiting for an eviction notice to
be served by sheriff's deputies. With your credit left mostly intact,
you will be in a much better position to obtain another residence, either
by purchase or rental.
Deed in Lieu of Foreclosure
If it appears there is no way to stop house foreclosure, the Deed in Lieu
of Foreclosure option allows you to transfer the title on the property
over to the lender, relieving you of all or most of your personal indebtedness
associated with the loan.
This option for avoiding foreclosure offers several advantages to both parties:
- Avoids formal foreclosure proceedings
- Prevents public filing of record, thus causing less harm to your credit record
- Eliminates foreclosure costs and legal fees for the lender
This process is fairly complex, requiring projections of the future home
value and the fair market value. It also requires us to convince the lender
to stop foreclosure sale, because although you can't afford to make mortgage
payments now, you didn't know this was going to happen when you took out
the loan. Otherwise, they may allege mortgage fraud and cause even bigger
problems for you.
Beware Forbearance Agreements!
We mention this "option" for avoiding foreclosure, because the
lender will often present it as an alternative to stop foreclosure sale.
In fact, if you have real financial problems, a forbearance agreement is
little more than a way to postpone foreclosure. It is often promoted as
a chance to catch up on your payments — but with stricter terms.
The lender often requires a huge lump sum (which you may not have) before
they will agree to stop mortgage foreclosure. Then, if you miss any subsequent
payments, the terms of the agreement usually permit more immediate action,
making it harder for you to stop foreclosure. In California, this is just
a way to squeeze more money out of a homeowner, under the guise of a workout
plan. Very rarely is it a viable option for the borrower.
Before you make any decisions regarding your future as a homeowner, it
is vital that you speak to the experienced foreclosure prevention attorneys
at Cal West Law by calling