Pre-foreclosure is a critical period for homeowners. During this time, the property is in the process of being foreclosed on, but you still legally own the home. You may have received phone calls from the lender or missed payment notices in the mail, but the bank has not delivered an official foreclosure notice yet.
An overview of California’s pre-foreclosure process
In California, lenders must adhere to strict guidelines during the pre-foreclosure process. To begin, they must contact the borrower within thirty days before recording a notice of default. The purpose of that contact should be to assess the borrower’s financial situation and explore ways to avoid foreclosure. From there, the lender needs to serve the homeowner with a notice of default to officially begin the foreclosure process. In order to prevent the auction of the property, the homeowner will need to cure that default.
While you’re still in pre-foreclosure, there are a number of actions that you can take to stop or postpone the process. Our Los Angeles foreclosure defense lawyers at RA & Associates can work with you to determine which strategy will keep you in your home for as long as possible, whether it’s attempting to stop the sale or filing a lawsuit against your lender for fraud or negligence.
How to file a lawsuit against your lender
During the pre-foreclosure process, you may be entitled to file a lawsuit against your lender. If they have violated the law or committed a procedural error while handling your mortgage, a lawsuit may hold them accountable while stopping the foreclosure and allowing you to stay in your home until the matter is resolved. This can be a viable option if:
Accounting errors are discovered
There are delays associated with the loan modification process
The lender is in violation of the California Homeowner Bill of Rights
The lender behaves in predatory or unscrupulous ways
If it is discovered that your lender has violated the law when handling your mortgage, a lawsuit against them may offer the ideal solution, as it can stop or postpone the foreclosure, giving you the time you need to remedy the situation.
If the bank is attempting to foreclose on your home, there are a number of legal ways to postpone or stop the sale altogether. For example, you can apply for a loan modification, initiate a short sale or file for bankruptcy to stay in your home and prevent the foreclosure process from progressing.
However, it’s important to note that these are complex strategies that must be performed precisely to ensure that your actions are legal and in your best interest. As such, it’s important to work with a foreclosure defense attorney who is experienced in foreclosure and lending matters, and can make sure you’re acting lawfully while also protecting your rights.
With over a decade of experience in real estate litigation and foreclosure defense, the attorneys at RA & Associates have successfully resolved countless cases for our clients. For help with your legal issue, contact our Los Angeles office today for a preliminary analysis of your case.