West Los Angeles Foreclosure Attorneys
Avoiding Foreclosure and Saving Homes in Southern California
If you fall seriously behind on making mortgage payments, your lender will likely attempt to foreclose your home. While this can be frightening, relief options are available, even if you cannot immediately afford to bring your mortgage current. Filing for bankruptcy allows you to stop a pending foreclosure through the automatic stay. This court order halts all collection actions, including foreclosure.
Our West Los Angeles foreclosure lawyers can help you use bankruptcy to save your home. We are compassionate to the stress and uncertainty you are experiencing and are committed to providing you with the compassionate support and guidance you need in this difficult moment. Our team at the Ghanooni Law Firm has handled thousands of cases and is extensively familiar with a wide variety of foreclosure avoidance strategies. We will work closely with you to understand your specific circumstances and develop a strategy for getting your life back on track.
“Eliza is not only super knowledgeable on all legal issues, but she is also very good at negotiating with creditors to settling any outstanding debts.”
How Foreclosure Works in California
You do not need to necessarily worry about foreclosure if you miss a mortgage payment or two. Though you may be charged a late penalty or some other fee, lenders in California cannot initiate foreclosure proceedings until at least 120 days have passed from the date you first missed a payment.
If you are dealing with other financial difficulties, however, it may be difficult to catch up. Fortunately, you will have ample time to proactively prepare for the possibility of foreclosure.
Once at least 120 days have passed, your lender may choose to file a Notice of Default with the appropriate court. You will receive a separate notice alerting you to this development within ten days of their filing. You will also receive information on how to bring your mortgage current and avoid foreclosure. If possible, you should consider exploring negotiating with your lender. You may be able to secure a loan modification or some other solution.
The state of California allows both judicial and nonjudicial foreclosures. Nonjudicial foreclosures only minimally involve the courts and are generally more efficient, so they are far more common. Judicial foreclosures do involve the courts and can present additional complications if your home is sold for less than what you still owe on the mortgage. In these scenarios, you are liable for the “deficiency,” meaning you will still owe your lender the difference even after they have sold your home. In most cases, however, lenders will utilize nonjudicial foreclosures.
You will have three months from the date the Notice of Default was filed to bring the mortgage current. Otherwise, your lender will schedule a public auction and deliver you a Notice of Trustee Sale. Your lender will have to wait an additional twenty days before the sale can take place.
If you have not already consulted with a qualified legal professional by this point, now is the time to do so. This is your last chance to protect your home and file for bankruptcy. You cannot utilize bankruptcy to save your home once the public auction has taken place.
In most cases, you will have at least 200 days from the date of your first missed payment before the sale of your home can occur. If you have the means to do so, bringing your mortgage current will automatically stop the foreclosure process. If you are struggling financially, however, you may need additional forms of relief. Our West Los Angeles foreclosure attorneys can evaluate your circumstances and advise whether bankruptcy may be the best way forward.
Using Bankruptcy to Stop Foreclosure
Bankruptcy is a powerful legal tool that can allow you to reorganize and eliminate debt. Filing can also protect you from creditor harassment and stop imminent and ongoing collection actions.
Chapter 7 bankruptcy can help you efficiently discharge unsecured debts and give you a clean slate, but it will likely not be the most reliable or effective means of saving your home from foreclosure. The Chapter 7 bankruptcy process involves liquidation, meaning non-exempt assets are sold to repay creditors. California exemptions allow you to protect a certain amount of equity in your home, but you may not be able to ultimately keep the property.
How Bankruptcy Stops Creditor Harassment and Collection Actions
When you enforce your rights and ask a debt collector to no longer contact you, they may file a collection lawsuit against you. If you owe the debt, they are likely to receive a judgment against you, which allows them to garnish your wages. To avoid this outcome, you will need to meaningfully address the underlying debt.
Filing for bankruptcy may be able to provide you with the relief you need. The bankruptcy’s automatic stay will prevent creditors from contacting you. This court order will also stop any imminent or ongoing collection actions, including garnishments and collection lawsuits. Completing your bankruptcy case generally allows you to discharge unsecured debts, including credit card debt and medical debt.
When you choose to retain our services, our West Los Angeles creditor harassment lawyers will put a swift stop to all incoming debt collection communications. Our team at the Ghanooni Law Firm can then evaluate your financial circumstances and advise whether bankruptcy is right for you. We want to help you live a life free from burdensome debt, and our firm is ready to implement creative and effective solutions to make this possible.
Boutique Law FirmOur boutique law firm has been open for over a decade, providing clients with strategic solutions for their unique bankruptcy situation.
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