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.
How to Stop Foreclosure in Los Angeles
Filing for bankruptcy is one of your options when it comes to stopping foreclosure. When you file, an automatic stay is triggered, which requires creditors to stop attempts to collect debts. It also requires mortgage holders to cease any foreclosure activities. The sooner you file for bankruptcy, the better.
Chapter 7 vs Chapter 13
For most people, the best choice is filing for Chapter 13 bankruptcy. This allows the individual to pay off the late payments over a specified period of time. Chapter 7 bankruptcy will allow you to cancel debt associated with our home, however the exemptions will not allow you to protect your home from being liquidated. If you are looking for lawyers for foreclosure, contact our bankruptcy firm, Ghanooni Law Firm.
Call Ghanooni Law Firm For Foreclosure Help
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 foreclosure 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.
Continue reading below to learn more about how foreclosure works in California.
“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. In those circumstances a California foreclosure may be your best option. Fortunately, you will have ample time to proactively prepare for the possibility of foreclosure.
Notice of Default
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.
Judicial vs Non-Judicial Foreclosure
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.
Notice of Trustee Sale
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.
Work With a Los Angeles Foreclosure Lawyer
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.
What Types of Debt Can Be Eliminated?
Upon completing your Chapter 13 plan, you will generally be allowed to discharge – or eliminate – any remaining unsecured debts. This means that any remaining credit card debt, medical bills, personal loans, or unpaid utility bills will be forgiven.
Certain types of debt cannot be discharged through Chapter 13 bankruptcy, including most types of tax debt, student loans, and missed spousal support payments. Mortgage arrears and some types of tax debt must also be paid in full over the course of your plan.
At Ghanooni Law Firm, our Los Angeles Chapter 13 lawyers are familiar with the intricacies of the U.S. Bankruptcy Code and can work with you to develop a plan that meets all requirements while maximizing available relief.
Call (213) 429-7749 or contact us online to learn more about your options.
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