You have certain rights against your lender/servicer upon receiving a foreclosure notice in California.
Since the crash in the housing market in 2008, a growing number of homeowners have explored their legal options in response to the foreclosure process. The legal strategy employed by homeowners in response to the foreclosure process is known as "foreclosure defense." The foreclosure defense strategy explores whether a lender/servicer has a right to foreclose on your home. Call the Property Lawyer now for a free evaluation of your case.
California Homeowner Bill of Rights
Under California Civil Code Section 2923.6 a lender/servicer may not record a notice of default or conduct a trustee’s sale without first providing a written determination on a borrower's pending loss mitigation application, such as a loan modification application.
One way of avoiding foreclosure is by modifying the mortgage. In a loan modification, the lender reviews the homeowner’s finances to determine whether they qualify for a restructure of their loan terms. Sometimes this restructuring or renegotiation of the loan terms makes the monthly mortgage payments somewhat affordable. However, in some instances where the homeowner has a significant amount owed in past due balance, it may temporarily increase the borrower’s monthly mortgage payment in order to give them an opportunity to get back on track without having to come in with a lump sum to reinstate their loan.
Another way of avoiding foreclosure is by way of a short sale. A short sale is the sale of your home to an arms-length buyer in which the net proceeds from selling the property will fall short of the debts secured by the liens against your home. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished. The advantages of a short sale far exceed a foreclosure. However, not all homeowner's qualify for a short sale.
If you feel that you have been wrongly denied an opportunity to be reviewed for a loan modification or short sale you may want to contact The Property Lawyer™ to explore your options.