Q: What is a foreclosure?
A: Foreclosure is a legal process that allows a lender to sell a property in order to repay a loan after a default. In simple terms, a foreclosure allows the bank to sell the home to collect the money that they loaned.
Q: How to stop a foreclosure?
A: The lender must stop the foreclosure process if the past-due balance is paid or if there is a court order or a written agreement signed by the lender. A court order can either be the result of a lawsuit or a bankruptcy filing. A lawsuit requires a hearing and a written order from the court. A bankruptcy filing automatically stops a foreclosure from moving forward [as long as there have not been prior bankruptcy filings within the year]. Common agreements that stop a foreclosure: short sale, deed in lieu of foreclosure, loan modification (for those who can demonstrate hardship).
Q: How to stop a California foreclosure?
A: To stop a California foreclosure it is best to file a bankruptcy or to obtain a court order stopping the sale, otherwise known as a temporary restraining order[TRO].
Q: How can I stop my foreclosure sale date in California without filing bankruptcy?
A: To stop a California foreclosure without filing bankruptcy you will need to obtain a court order stopping the sale, otherwise known as a temporary restraining order[TRO].
Q: How to avoid foreclosure?
A: As a rule, the lender cannot foreclose if a borrower continues to make monthly mortgage payments. If a borrower defaults and misses more than 3 monthly mortgage payments, the lender is legally entitled to start the foreclosure process. Once the foreclosure process starts, the borrower can stop the foreclosure by either catching up and paying the past due balance, or taking other action.
Q: How to prevent foreclosure?
A: The best way to prevent foreclosure: don’t miss any mortgage payments. If you are struggling to prevent foreclosure after missing mortgage payments it is best to call and discuss your situation with an experienced attorney. It may be possible to file a lawsuit against a mortgage company or lender if they are violating the law.
Q: What is a deed in lieu of foreclosure?
A: A deed in lieu is an agreement between the lender and the borrower to avoid the foreclosure process. The borrower agrees to give a title to the lender and the lender agrees to allow the borrower to walk away from the property without any additional obligation. The agreement determines whether the borrower will owe any additional amount to the lender [if the property is upside down or if there is any past due amount that the lender will not forgive].
To obtain a deed in lieu of foreclosure, it’s best to contact a specialized attorney that practices Real Estate law or a foreclosure attorney.
Q: What is a loan modification?
A: A loan modification is an agreement between the lender and the borrower to modify the loan terms [usually lowering the monthly payment and/or the interest rate]. There is no requirement for the lender to modify the loan. In general, a loan modification is a voluntary restructuring of debt by the lender to make it possible for a borrower to remain in the home and to make payments to the lender under new terms.
A borrower must demonstrate hardship in order to qualify for a loan modification. The lender must be willing to voluntarily modify the loan after reviewing the borrower’s application. In most cases, in addition to past hardship, the borrower must demonstrate the ability to make payments to the lender before a loan will be modified.
Q: Where to find an affordable foreclosure attorney?
A: Consumer Action Law Group is the firm most homeowners in California turn to when looking for an affordable foreclosure attorney. Clients located outside of California, Consumer Action Law Group often refer to affordable foreclosure attorneys for homeowners in need.
Q: More information on the Foreclosure Process
A: To stop a California foreclosure it is best to file a bankruptcy or to obtain a court order stopping the sale, otherwise known as a temporary restraining order[TRO].
Q: How to stop a California foreclosure?
A: If you’re looking for more information on the foreclosure process and a look at the timeline here is a good resource: https://www.propertyshark.com/info/foreclosure-process-california/
