Van Nuys Foreclosure Protection Lawyer
The thought of losing your home is extremely frightening. Still, it is not uncommon for homeowners to get behind on their mortgage payments from time to time. This does not necessarily mean your lender will start foreclosure proceedings but if you miss many months of mortgage payments, they may. Even if your lender has started the foreclosure process, you do still have options. Below, our Van Nuys foreclosure protection lawyer explains what these are.
What is Foreclosure?
Simply put, foreclosure is a legal process through which a mortgage lender tries to recover the debt on a loan that is in default. To do this, the lender takes ownership of a property with a defaulted mortgage and tries to sell it. Default typically refers to when a homeowner fails to pay their home loan for many months. Under federal law, no lender can start the foreclosure process until a borrower is more than 120 days delinquent in payments. Foreclosure can also occur when a homeowner fails to meet other terms of a mortgage loan, such as failing to pay property taxes.
What is the Foreclosure Process in California?
The foreclosure process can be lengthy and expensive, which is why even lenders try to avoid it when possible. However, lenders will foreclose when they feel as though homeowners cannot pay their mortgage and when they do, a number of steps must be taken. These are as follows:
- Alternatives: Your lender will contact everyone named on the mortgage loan to review the financial situation and determine if there are any alternatives to foreclosure.
- Notice of default: The notice of default officially begins the foreclosure process. Your lender must record a notice of default in the same county as your home. The notice of default must occur 30 days after your lender initially contacted you. After receiving the notice of default, you have 90 days to pay the amount owed.
- Notice of sale: If you do not repay what is owed within 90 days of receiving the notice of default, your lender will record a notice of sale. If a notice of sale is recorded, it means your home will be sold at auction in 21 days.
- Public auction: After at least 21 days have passed from the notice of sale, a public auction may be held, at which your home may be sold. Your lender will likely make a bid for the same amount as the outstanding balance, as well as the costs of foreclosure. If no one makes a higher bid, the lender will take the home.
Our Foreclosure Protection Lawyer in Van Nuys Can Help You Keep Your Home
Receiving notice that you are in foreclosure is extremely stressful. At Wadhwani & Shanfeld, our Van Nuys foreclosure protection lawyer knows the defenses available in these cases and can help you determine which option is right for you. Call us now at 818-658-2669 or chat with us online to request a consultation and to learn more about the legal options available to you.
