foreclosure Defense Attorneys in Los Angeles
Effective Foreclosure Defense Strategies in Your Area
Several options may be available to save your home from foreclosure. The option best for you will depend on your individual circumstances and objectives.
These can include:
- Negotiate a repayment plan with the lender in which the missed payments are spread out over a set period of time and added to future mortgage payments until the default is cured. This generally requires lender approval and can also come with additional fees and interest.
- Seek a loan modification through the lender. This involves changing the terms of the original loan to make it more affordable. This could involve reducing the interest rate, extending the term of the loan, or even reducing the principal balance owed. To successfully negotiate such a modification, it is extremely advantageous to have an experienced attorney working on your behalf.
- File for bankruptcy. As soon as your file for bankruptcy, the court will issue an immediate stay in which your creditors can no longer seek payment while you are under the protection of the court. With a Chapter 13 filing, you reorganize your debts and set up an affordable repayment plan while also protecting your assets, such as your home. Your repayment plan is based on your income and expenses and is designed to make your debt payments more affordable. The repayment plan typically lasts three to five years, during which time you will make regular payments to the bankruptcy trustee, who will then distribute the funds to the creditors. The repayment plan can include the arrears owed on your mortgage. However, you must maintain your regular mortgage payments to your lender once your bankruptcy case has been filed. As long as you continue to make these payments, you will be protected from foreclosure.
- Sell your home in a short sale. If saving your home is not possible, you can work with your lender to sell the property for less than the mortgage amount owed. The proceeds will then be used to pay off as much of the outstanding balance as possible. The lender must agree so that the lien on your property can be released. A short sale prevents foreclosure and generally results in less credit damage than a foreclosure.
- Deed in lieu of foreclosure. This is a legal agreement between you and your mortgage lender in which you voluntarily transfer ownership of the property to the lender in exchange for being released from the mortgage debt. Essentially, it is a way for homeowners to avoid going through the foreclosure process. However, it may have potential downsides, such as still being liable for a deficiency balance remaining after the property has been sold.
What Is Foreclosure Defense?
Foreclosure defense refers to the legal strategies and tactics used by homeowners to protect their homes from being foreclosed upon by their mortgage lenders. Foreclosure is a legal process by which a lender takes possession of a property after the homeowner has defaulted on their mortgage payments.
In California, the foreclosure process typically begins when the lender sends you a Notice of Default (NOD) stating that you have defaulted on your mortgage payments. You then have 90 days to “cure” the default or risk having the lender initiate a foreclosure sale of the property.
To "cure" the default on a mortgage loan means to bring the loan current by paying all the missed payments and any associated late fees or penalties. Essentially, it means catching up on the payments that were missed to avoid foreclosure proceedings.
If you do not cure the default, the lender will then send a notice of trustee sale (NTS), which informs you that the property will be sold at auction within 21 days. At this point, you may have options to successfully resolve the situation.
However, we recommend that you take steps earlier than this to stop the foreclosure when you have begun to miss mortgage payments or immediately after receiving a Notice of Default.
How Papian & Adamian Can Help
As soon as you realize you may not be able to continue making timely mortgage payments, you need to act to optimally resolve the situation. Our Los Angeles firm can analyze your case to help determine the best plan for you. We can ensure that you understand the pros and cons of any option.
Once we determine how best to proceed, we can help you implement the solution and follow the appropriate legal steps. Our goal is to do everything possible on your behalf to help you avoid the loss of your home or property.
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Foreclosure Defense Options in Los Angeles
Several options may be available to save your home from foreclosure. The option best for you will depend on your individual circumstances and objectives.
These can include:
- Negotiate a repayment plan with the lender in which the missed payments are spread out over a set period of time and added to future mortgage payments until the default is cured. This generally requires lender approval and can also come with additional fees and interest.
- Seek a loan modification through the lender. This involves changing the terms of the original loan to make it more affordable. This could involve reducing the interest rate, extending the term of the loan, or even reducing the principal balance owed. To successfully negotiate such a modification, it is extremely advantageous to have an experienced attorney working on your behalf.
- File for bankruptcy. As soon as your file for bankruptcy, the court will issue an immediate stay in which your creditors can no longer seek payment while you are under the protection of the court. With a Chapter 13 filing, you reorganize your debts and set up an affordable repayment plan while also protecting your assets, such as your home. Your repayment plan is based on your income and expenses and is designed to make your debt payments more affordable. The repayment plan typically lasts three to five years, during which time you will make regular payments to the bankruptcy trustee, who will then distribute the funds to the creditors. The repayment plan can include the arrears owed on your mortgage. However, you must maintain your regular mortgage payments to your lender once your bankruptcy case has been filed. As long as you continue to make these payments, you will be protected from foreclosure.
- Sell your home in a short sale. If saving your home is not possible, you can work with your lender to sell the property for less than the mortgage amount owed. The proceeds will then be used to pay off as much of the outstanding balance as possible. The lender must agree so that the lien on your property can be released. A short sale prevents foreclosure and generally results in less credit damage than a foreclosure.
- Deed in lieu of foreclosure. This is a legal agreement between you and your mortgage lender in which you voluntarily transfer ownership of the property to the lender in exchange for being released from the mortgage debt. Essentially, it is a way for homeowners to avoid going through the foreclosure process. However, it may have potential downsides, such as still being liable for a deficiency balance remaining after the property has been sold.