Many people think there aren’t many ways to put up a defense to a foreclosure that a bank is pursuing.
For one‚ if the bank can’t show who actually owns the note on the house — through years of sales to investors — or if illegal paperwork has been filed‚ there may be a chance a homeowner could get out of foreclosure.
But there is an easier and more likely option of Los Angeles bankruptcy to consider. Many people struggling with foreclosure don’t realize that bankruptcy stops the process immediately.
Whether a homeowner is only one month behind in payments or the houses is about to be sold at auction‚ a Los Angeles bankruptcy lawyer can help homeowners stop the foreclosure in its tracks. That means no more calls by creditors and no more wage garnishments.
As MSNBC.com reports‚ the number of foreclosures are increasing. Banks are again making a big push toward filing foreclosures after they spent more than a year reviewing their faulty procedures.
RealtyTrac‚ a foreclosure tracking service‚ reports that first-time default notices increased 14 percent from July to September compared to the April to June period before it. This shows that banks are now moving more aggressively against homeowners who have fallen behind on payments.
Experts believe that the faster homes are taken away from borrowers and put on the market and re-sold‚ the sooner the real estate market can recover. But these experts are highly paid and aren’t living in the trenches like the rest of the country. They don’t realize that it’s pretty difficult to move an entire family when they have fallen behind on one payment.
Banks care about making money‚ giving little regard to homeowners who want to try to work something out that is beneficial to both parties. But sometimes‚ negotiations don’t mean much. When jobs are lost or major medical illnesses result in big bills‚ bankruptcy may be the only way to get back on track.
By wiping out other debts‚ such as credit card bills‚ loans or other expenses‚ sometimes families can restructure their monthly payments to again afford a house they wish to stay in for a long time. This can be beneficial to both the homeowner and the bank holding the note.
Some people think there are no answers when they are saddled with debt. They have no credit‚ so they can’t get a loan. Their family members‚ too‚ are jobless and unable to provide any money and they aren’t likely to get a raise if they are lucky enough to have work right now.
So‚ they continue paying the minimum on credit card bills or medical bills in the hopes that the economy will miraculously turn around. But the reality is this country is in tough financial shape and it’s going to take a long time for things to turn around.
Waiting may not be the best action — it may be moving forward aggressively with bankruptcy in order to give your family a chance for a brighter future‚ not one held down by bills and debt.
Cal West Law will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale‚ and Los Angeles‚ just call (800) 568-0707.