Foreclosure Defense Attorney San Jose
Stop Home Foreclosure with Real Estate Attorney
Over the last five years, the number of foreclosure filings in California has more than doubled. Santa Clara County has seen one of the sharpest increases in foreclosures, and many people throughout the state who are at risk of losing their homes are afraid that they have run out of options. Thankfully, that is not necessarily the case. An article in the California Law Journal in 2010 highlighted the fact that numerous defenses against foreclosure have been upheld in courts throughout the state in recent years. In addition to deed in lieu, loan modification or short sale, the following foreclosure defense strategies have effectively helped homeowners protect their home, and they may help you as well:
- Damages for failing to obtain the legal right to enter a defaulted borrower's home
- Damages for the unreasonable and overreaching language of a mortgage agreement
- Unconscionable practices during loan medication negotiations
Explaining Foreclosure: What does it mean?
Foreclosure occurs when a mortgage holder falls behind on their payments. This is done through a highly specific legal process which allows for the lender to recover the money that they are owed by seizing the home, selling it and using the profits to satisfy the debt that they are owed. At this point, the foreclosure process will begin, which can be confusing to understand. Below, Capital Law Offices has provided a very basic breakdown of how the foreclosure process works. If you would like to know more or would like to discuss your case in details, please do not hesitate to call.
- If the borrower has failed to make payments for several months (usually between three to six months), the lender will record a Notice of Default (NOD).
- During the default, the borrower has the ability to repay and catch up. By repaying or reaching an agreement with the lender, the borrower can dodge foreclosure. This period usually lasts five days.
- If nothing occurs, foreclosure will proceed. After this, the borrower will receive a Notice of Sale from the lender, which will let them know about the sale date that has been determined. This is recorded publically and may even be published in local newspapers and other publications.
- If a Trustee Sale occurs, the property will be publically auctioned to the highest bidder. The winner will have to pay for the property, in cash, within 24 hours of the auction.
Protecting Your Home with San Jose Attorney Against Foreclosure
Just because you have been notified of a possible foreclosure does not mean that you will lose your home. There are steps that can be taken to help save your home against the possibility of foreclosure. At Capital Law Offices, our legal team is well-versed in all aspects of foreclosure defense and will go above and beyond in their efforts to helping you protect yourself. Even in cases where we are not able to prevent you from losing your home, we may be able to help you avoid the negative blemish that a foreclosure can leave you record. Below, we have listed out just some of the options that we have to help you with foreclosure defense:
Deed in Lieu
One popular form of avoiding foreclosure is what is known as a deed in lieu. Should a homeowner choose this option, they will simply turn over their deed to the home over to the lender, thus releasing themselves of all responsibility to pay anything back. The lender will then sell the property and keep all of the profit. This will still result in you avoiding the negative mark of a foreclosure on your credit report.
Should a homeowner pursue a loan modification, it will allow for them to come to an agreement with the lender. This could be a lower balance, lower interest rates or even lower monthly payments. In some cases, it may eliminate what you previously owed. This can help you begin making payments regularly and can help the lender to ensure that they will begin to get paid once more.
For homeowners who are upside down or underwater in their mortgage, the best option may be in pursuing what is known as a short sale. By entering into a short sale, both lender and borrower agree to sell their home, with the profits going to satisfy the debt that is owed – even if it is less than the total amount. They will thus release the borrower of all need to pay off the debt, while still gaining some of the profit.
Notice of Foreclosure
Have you received a letter indicating that you may be in a foreclosure proceeding? Most lenders send out this warning notice before the foreclosure process begins. If you are served with a Summons and Complaint in foreclosure in person, you only have 20 days to respond by filing a Formal Answer to every allegation the complaint brings against you. Due to a new law that took effect in California in 2008, you may now be able to settle your foreclosure case before the court without filing for bankruptcy or losing your home. The Civil Practice Law and Rules 3408 requires banks to renegotiate loans and in many instances, to fix interest rates and incorporate the money owed into a loan. With the firm's deep understanding of the law and how mortgages work, they will explore every avenue including this one to provide the relief that you need to stay in your home.
If you have any questions or would like to schedule a FREE initial consultation with one of our experienced attorneys, please Contact Us online or call at (408)627-4898 today!