Responding To And Defending Foreclosure

In this article, you can learn:

• What options you have available if you’re facing foreclosure.
• How filing for bankruptcy can help you during the foreclosure process.
• At what point you should involve an attorney to help with your foreclosure.

Once A Foreclosure Notice Is Received, How Long Do I Have To Respond?

If you’ve received a Foreclosure Notice, you may be wondering what to do next. While it can be incredibly disheartening to get a Foreclosure Notice, it’s helpful to know more about the process so you can understand your options. In most cases, properties in California are foreclosed non-judicially. This means that a notice of default is filed, which has to run for three months, followed by a notice of sale, which has to run for a minimum of 21 days. This is the non-judicial foreclosure process. If a bankruptcy is filed at any time during that process, it keeps the non-judicial foreclosure process from going forward. Creditors do have the option to judicially foreclose, which means that they can file a lawsuit and get a judgment. Then, they must seek a sheriff’s sale of that judgment. However, this is extremely uncommon in California, at least in residential cases.

Once My Lender Begins Foreclosure Proceedings, Do I Have Any Chance Of Saving My Home?

Chapter 13 bankruptcy is a powerful tool that allows us to stop foreclosure proceedings. From there, you have options that depend on various factors, such as:

• How far behind you are on your loan
• What your intent is with respect to the property
• Whether there’s equity in the property or not
• And more…

If you’re behind on your loan, one common option is to repay the arrears over five years, often at no interest. Another option would be to make no payments, but provide for the sale or refinance of the property within a matter of a few months. You could also propose a plan that would sell or refinance the property within a year or 18 months, which can sometimes get extended. During this time period, you would continue to make regular contractual payments. If the property is not your primary residence and the value of the property is less than the loan amount, we can reduce the loan amount to the value of the property and rewrite that loan over time. In chapter 13, you’re only allowed to rewrite over five years. In chapter 11, you can rewrite it over a much longer period of time, even 30 or 40 years.

Is Chapter 13 Bankruptcy An Effective Foreclosure Defense?

Chapter 13 bankruptcy is a very powerful tool that is often used to stay a foreclosure sale. This gives the debtor time to sell their equity or to refinance or restructure.

Could Filing For Bankruptcy In California Allow Me To Regain My Property After A Foreclosure Sale?

It is very difficult to regain a property after a foreclosure sale. There is a method where you file a lawsuit stating that the transfer of the property occurred within three months of the bankruptcy filing, and therefore is a preference. While not impossible, it is very difficult to prevail with this. You want to address this before the foreclosure auction actually takes place if it’s a non-judicial sale. If it’s a judicial sale, there are rights of redemption and you have a statutory right to redeem. However, judicial sales are uncommon in California.

Are There Other Possible Defenses For Foreclosures?

In a non-judicial foreclosure, the lender must follow the procedures set out in the statutes. If they don’t properly follow that procedure, then the foreclosure sale could be set aside. Typically, this is done in the state court and not in bankruptcy court, but it could be done in bankruptcy court under certain circumstances. Most of the foreclosure procedures are properly followed because the foreclosure trustees do this every day and they have procedures and processes in place. However, there are instances where notices are incorrect or didn’t go to the latest address on record, and then there are possible defenses.

When Should I Get An Attorney Involved In My Foreclosure? How Can A California Foreclosure Defense Lawyer Help Me?

The sooner you get an attorney involved, the more options you’ll have. They can help you strategize about when bankruptcy should be filed and what type of bankruptcy you should file. You can seek adjustments to your income to propose a feasible plan. The sooner you meet with an attorney, the wider the opportunity window is so you can get the best result. As soon as you receive a notice of default or, in rare cases, a lawsuit for judicial foreclosure, you should consult legal counsel. For more information on Foreclosure Defense In The State Of California, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (408) 295-5595 today.