Los Angeles, CA -- (SBWIRE) -- 02/23/2016 -- Facing a foreclosure auction can be quite distressing, even for the most calm individuals. Ever since the economic recession, foreclosure auctions in Los Angeles have been very active. The prospect of losing a property in a foreclosure sale is frightening and many people don't know how best to prevent the loss of their property. There are several strategies to stop a foreclosure auction.
The following are a few legal and non-legal ways to prevent foreclosure auction:
Stop a Foreclosure Auction Legally
File a Lawsuit
When a lender is pursuing foreclosure, the owner have the option to delay or stop the foreclosure by filing a lawsuit against them, which may allow homeowner to stay in the home until the outcome of the suit. If the lender is violating California foreclosure laws, a lawsuit may be proper.
Declare Chapter 13 Bankruptcy
Declaring Chapter 13 bankruptcy allows homeowners to restructure their debts and pay them over a period of three to five years while still living in their home. As long as the homeowners are making payments on their mortgage, the lender is not allowed to sell or foreclose the property.
Non Legal Methods to Stop Foreclosure Action
One of the non-legal ways to stop foreclosure auction is by negotiating with the lender for a modification on the terms of the mortgage. Ideally the modification should lead to a lower mortgage payment but may also work by extending the repayment period. The lender may choose to lower their interest rate, extend the term of the loan or reduce the principal amount. Homeowners do not need to hire a lawyer for a modification.
In a short sale, mortgage lenders will agree to accept a smaller payoff on the outstanding amount to allow homeowner to sell off their home and avoid foreclosure auction. The short sale must be negotiated, and it is best to work with an experienced real estate agent that has a track record of closed short sales with lenders.
Deed in Lieu of foreclosure
As a last resort, if the homeowners are unable to sell their home via short sale, they may choose to surrender the title property to the lender, in return for a release from the obligation to pay the mortgage. A Deed in Lieu of foreclosure is an agreement that should be negotiated and/or reviewed by a lawyer.
When homeowners are threatened with the loss of their property, making the correct decisions can be difficult as their ability to think reasonably is compromised by the stress they are under. Further, homeowners might not have the legal knowledge to navigate through the court systems and come out triumphant in the end. Anyone who has received a notice of default in Los Angeles or anywhere in California, it is best to procure the services of a qualified and experienced foreclosure attorney. A good foreclosure lawyer can help to renegotiate the terms of mortgage with the lender, assist to file lawsuits and bankruptcies, and give the best alternatives advice to avoid foreclosure auction.
About Consumer Action Law Group
Consumer Action Law Group is a law firm dedicated to help consumers in consumer-related matters or consumers that experienced fraud and scam. Attorneys in the team are knowledgeable and experienced in the areas of eliminating debt, mortgages fraud, auto fraud, and foreclosures. They have direct experience in consumer fraud matters and helping consumers who are facing financial crisis, foreclosure, issues with employers, and problems with auto dealers.
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Contact Person: Lauren Rode, Esq.