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California Real Estate Finance Attorney

Mortgages


The most common method of financing a real estate transaction is through a loan secured by a mortgage on the property. A mortgage involves the transfer of an interest in land as security for an obligation. A borrower typically repays a mortgage in installments that include both interest and principal payments.

 

Many homeowners are becoming unable to make their mortgage loan payments. When homeowners default on these payments, banks and other lenders are left with few options other than foreclosure.

In California, most foreclosures occur outside of the courtroom. In non-judicial foreclosure proceedings, the lender simply reclaims the property, without the need to obtain court approval.

Our Iranian Real Estate Finance Attorney Can Help You Avoiding Foreclosure

Depending on your financial situation and the specifics of your mortgage, one of the following may be your best option for avoiding foreclosure:

  • Loan modification
  • Short sale
  • Chapter 13 bankruptcy
  • Lien stripping

 

Chapter 13 Bankruptcy and Foreclosure

People who don’t qualify for Chapter 7 bankruptcy usually have to file under Chapter 13. Unlike Chapter 7 bankruptcy which wipes out unsecured debt, Chapter 13 may require you to repay a percentage of what you owe over a 3- to 5-year period, depending upon your net monthly disposable income. You will be required to submit a repayment plan for approval by the court and your creditors.

As part of your repayment plan, you can include past-due mortgage payments and reduce other monthly bills into one manageable payment. Consequently, people who file Chapter 13 bankruptcy are often able to avoid foreclosure. Additionally, once you file for bankruptcy, an automatic stay is placed on any foreclosure or collection actions on the part of banks and creditors.

 

First and Second Mortgages and Foreclosures — Some Considerations

If you have a second mortgage on your home or you have taken out a home equity loan, certain considerations come into play if you decide to pursue a short sale in lieu of a foreclosure. In general, if you decide to work out a short sale with your lender, the bank can ask you to pay the difference between what you sold your house for and what you owed on your original mortgage.

However, if you have a second mortgage and aren’t protected by anti-deficiency provisions, the lender can pursue you for any losses it takes on your second mortgage. Depending on your situation, your second mortgage may be dischargeable in bankruptcy.

Regardless of whether you own residential or commercial property, foreclosure may not be your best option. For foreclosure help and information on alternatives, please contact our Finance Attorney at Aria Law Group today to schedule an appointment and learn how we can help you.

 

Once Your Home Is Sold After Foreclosure

After your home is sold, its new owner must provide you with a three-day written notice to quit the property and initiate a formal eviction process. The new owner cannot change the locks on the doors or throw you out immediately. Typically, the eviction process takes 30 to 45 days in the State of California. This means the new owner cannot knock on your door and throw you out. After the eviction process has been initiated, you can — and should — file a response in court.

In some cases, the new owner — possibly the bank — may offer you money to move out rather than go through the eviction process. If you accept money to move out, you should get everything in writing.

Contact Our California Real Estate Lawyer:

If you have questions regarding the foreclosure process or the alternatives to foreclosure, please contact us or call us at (650) 391-9630. Even if the foreclosure process has already begun, we can evaluate your situation and help you protect your rights and interests.

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