Commonly asked questions by our clients



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A Foreclosure is the process in which the lender(s) takes possession of the mortgaged property when the homeowners fail to keep up with the mortgage payments. The lender(s) can seize the property, evict the homeowners, and sell the home at a public auction.*Do not panic, they are only able to do so after fulfilling two steps, which usually take a minimum of four months after the process is started.  You have time to figure out some strategies to postpone or avoid the foreclosure completely, and we can help you figure out your best approach.

2. How does the bank have a right to foreclose on my home?

There are two cases with different players and different processes. When you took out a loan to purchase your home, you had to sign a promissory note, in which you promised to repay the loan. You also may have either signed a mortgage or a deed of trust, in which you pledged your property as collateral. The mortgage or deed of trust is what grants the lender the legal rights to a foreclosure.

3. What is the difference between a mortgage and a deed of trust?

They are both debt instruments that serve the same purpose, but have different foreclosure paths. If you signed a mortgage to secure your home, you will most likely have a judicial foreclosure. If you signed a deed of trust, you will most likely have a nonjudicial foreclosure.  In the state of California, lenders will usually utilize a deed of trust.A deed of trust is an agreement where the legal title of your property is transferred to a neutral third-party trustee, who holds the property until you pay off your loan. If the deed contains a power of sale clause, which it usually will, the trustee can foreclose on your home without going to court (nonjudicial foreclosure).If you want to challenge a nonjudicial foreclosure, you will need an attorney to represent you and file a lawsuit against the foreclosure. This will bring the foreclosure before a judge, who will protect you against illegal tactics by the foreclosing party.  Contact us to find out ways we can help you postpone or stop the foreclosure on your home.

4. What does the trustee do?

The trustee acts as a neutral party between the lender and the borrower and has the right to foreclose on your property if you fail to make payments towards your loan. There are many limitations on who can act as the foreclosure trustee to ensure that the foreclosure process is in accordance with the law.The trustee is required by law to provide you with information on whom you owe money to, how much is needed for a reinstatement of your loan, and how to stop the foreclosure. It is especially important for you as a homeowner to get in contact with your trustee if you are actively trying to save your home.The process is complicated, and you may even have an improper trustee, but you have options.  We can help you figure out potential claims and defenses you may have to legally stop the foreclosure and keep you in your home.

5. What can I do without an attorney?

While it may be much more work by yourself, there are options that you can take to discharge the foreclosure. However, each option comes with its own benefits and downsides, so it can become confusing to figure out the best action for your future. You need a full grasp on your situation and what you can realistically afford.
Loan Modification
Forbearance Agreement
Deed in Lieu of Foreclosure
Sell your home
Standard Sale
Short Sale

We may be able to help you to find qualified real estate professionals and interested investors as well.If you choose to do nothing, your house will be sold at an auction and the foreclosure will be on your credit report for seven years. This will make it nearly impossible for you to get another loan.  It can also affect your ability to secure a job, since many employers will run credit checks.

*If you would like more information on each of the options above, please contact us.

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