In California, there are a number of ways to stop or postpone a foreclosure sale. However, all of these strategies require the assistance of a lawyer who is experienced in these complex matters and can keep you in your home for as long as possible.
How to postpone or stop the sale of your home
Many homeowners believe that there’s no way to stop foreclosure in Los Angeles once the process has begun. However, this simply isn’t the case. The reality is that there are many ways to postpone or stop the sale altogether and keep your home with you, its rightful owner. Here’s how:
Negotiate with your lender
If you’re facing foreclosure, the first thing you should do is call your lender and attempt to negotiate. Provide valid excuses for not paying your mortgage, and ask if they can work with you to remedy the situation.
File a lawsuit against your lender
The California Homeowner’s Bill of Rights became a law in 2013 as a way to provide homeowners with the strategies they need to avoid foreclosure. If your lender is in violation of this law, you may be able to sue them for monetary damages – which could result in you staying in your home.
Initiate a short sale
A short sale occurs when you sell your property for less than the balance owed on the mortgage. The lender takes a loss, but is still able to recover some value from the property. If you initiate the short sale, you will walk away from your home and the mortgage. Your credit will suffer as a result, but less so than it would with a foreclosure or bankruptcy.
Apply for a loan modification
A loan modification is one of the best solutions for homeowners facing foreclosure. If your financial situation has drastically changed, the original terms of your loan may no longer be feasible. A loan modification changes the terms so that you can pay what you owe in a more realistic manner. This isn’t a quick or easy process, but lenders can’t move forward with the foreclosure process while your application is under review.
File for bankruptcy
When you file for bankruptcy, all creditors and debt collectors must stop attempting to collect from you – including your mortgage lender. This gives you time to sort out your finances and work with your lender to negotiate a realistic payment plan. This may result in you staying in your home, but the tradeoff is that your credit will suffer for many years. As such, bankruptcy should be considered a last resort.
Which option is right for you?
Our Los Angeles attorneys at RA & Associates will work with you to determine which of the above legal strategies is in your best interest, based on the specifics of your case and your history with your lender. Once we’ve settled on the right course of action to postpone or stop foreclosure in Los Angeles, we will do everything within our power to keep you in your home for as long as possible.
Contact our office today
With over a decade of experience in real estate litigation, 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.