Many people are facing severe financial situations due to the tough economy. For this reason, many hard-working Californians are forced to face foreclosure. This can put homeowners under a lot of stress.
Fortunately, there are ways you can fight against foreclosure and save your home from being sold by your creditors. The California foreclosure defense attorneys at The Bankruptcy Group invite you to keep reading as we explain the possibilities for saving your home from being foreclosed.
Can I Save My Home from Foreclosure?
A foreclosure is a legal process where a creditor or lender tries to recover what is owed to them by going against the debtor’s property (secured debt). This is what happens most of the time with people who cannot meet their monthly mortgage obligations due to financial hardship. Fortunately, there are ways a debtor can protect their home against their creditors. This means you can stop a foreclosure process against your house by employing one of the following alternatives:
Filing for Bankruptcy
Filing for bankruptcy is one of the best options to keep your home when facing foreclosure. Many people may believe that the only benefit they can get out of a bankruptcy is a discharge. While bankruptcy allows debtors to have a new financial start, they can also help in financial emergencies.
When you file for bankruptcy, you obtain the protection of an automatic stay. The automatic stay is a legal recourse that can protect debtors against collection actions from their creditors. This powerful legal tool can help you keep your home while your bankruptcy process is pending. In other words, your creditors are prevented from taking your home away during the lifetime of your bankruptcy.
The automatic stay, while effective against collection actions, cannot go against public policy. For instance, the state will always keep a child’s welfare its top priority. Therefore, if you have child support debt, you cannot stop making your payments on time. The automatic stay is ineffective in this situation. The same goes for any restitution penalty imposed due to the commission of a criminal act.
Filing a Lawsuit
It is possible to stop a foreclosure by filing a lawsuit. However, certain conditions must be met for a lawsuit to work on your favor. For instance, there are ways your lender can go against your property using an out of court procedure known as a “non-judicial process.” If your lender is trying to foreclose your property by employing this process, you may be able to challenge the foreclosure action.
One of the things you can challenge when filing a lawsuit under these circumstances is your lender’s foreclosure actions. If your lender intends to foreclose your property, they need to meet the state requirement for such a process. If they didn’t follow the rules and regulations set forth by the statute, you would have the upper hand. Keep in mind, proving your case requires following the normal lawsuit process, which can be costly, especially if you are already going through a period of financial hardship.
Using a Loan Modification
In some cases, you can negotiate with your lenders and ask for a loan modification. This process can help you stop a foreclosure proceeding against you. The state of California and the federal government both prohibit what is known as “dual tracking.” Dual tracking happens when your lender tries to foreclose your home while you are trying to apply for a loan modification or are otherwise trying to find a way to protect your home from foreclosure. Using a loan modification may be a good option for those looking to defend their homes.
There are other alternatives to foreclosure that may work for you depending on your specific set of circumstances. However, the ones discussed above are among the most common ways to fight foreclosure.
Why Should You Fight a Foreclosure?
Now that you understand some of the tools available against foreclosure, it is essential to know why you should prevent your home from being foreclosed. The main reason to fight off foreclosure is to protect your home. This should be the driving force behind your efforts. After all, you don’t want to lose the house you worked so hard to get.
Another reason to fight against foreclosure is your credit score. Your already bad situation can worsen if your creditors foreclose your home. A foreclosure will negatively impact your credit score, making things such as renting an apartment almost impossible. It is of utmost importance to get help from a knowledgeable and skilled foreclosure defense lawyer who can guide you through the entire process.
California Foreclosure Defense Lawyers Offering Free Consultations
Facing foreclosure can be an overwhelming and scary process, especially for those who have never been involved in this type of situation. Our California bankruptcy attorneys understand how difficult this trying time can be. That is why we dedicate all our efforts to defending and upholding your rights through the entire foreclosure defense process. Do not let your creditors take away the home you have fought so hard to obtain. Turn to the help of our skilled California home foreclosure lawyers today. To learn more about your case in a free, confidential consultation, call The Bankruptcy Group at 1-800-920-5351.