Foreclosure Alternatives

Irvine Foreclosure Alternatives Attorney Realtor

Helping Homeowners in Los Angeles, Orange, and San Diego Counties Understand Their Options

When you are unable to keep up with mortgage payments and have no means of curing the default, foreclosure and eviction can seem inevitable. Whether you want to keep or sell your home, you have options. Many foreclosure alternatives can substantially reduce the negative consequences to your credit and finances. They can also limit or eliminate your exposure to taxation and deficiency liabilities. However, each foreclosure alternative carries crucial financial, legal, and tax implications that you must understand in order to adequately protect your interests.

It is unlawful for anyone other than a licensed attorney to give you formal legal or tax guidance. Still, many unscrupulous real estate agents or advisors will attempt to give you advice on how to handle these delicate situations. These bad actors will often attempt to exploit your situation and leave you vulnerable to further harm.

Our Irvine foreclosure alternatives attorney realtor is uniquely qualified to provide professional guidance at no cost to you. We have extensive experience handling matters of real estate law, taxation, brokerage, residential lending, litigation, and bankruptcy. Our team has leveraged this knowledge to help thousands of homeowners throughout California. We can review your unique situation, answer your questions, and provide the comprehensive analysis that you need to overcome any challenge.

We have over 50 years of professional experience. If you are concerned about foreclosure, do not hesitate to call (949) 264-0966 or contact us online.

Why You Should Avoid Foreclosure and Eviction

If you know with some certainty that you will not have the funds to pay your mortgage, you may be tempted to do nothing and let the foreclosure process play out. If you take no action, your lender will eventually initiate foreclosure. This involves selling your home at a public auction, after which you will be promptly evicted.

If you are not concerned with keeping your home, doing nothing might seem like an acceptable option. However, having a foreclosure and eviction on your record can cause serious damage to your credit and your ability to secure future housing.

Your foreclosure will appear on your credit reports, and you will be required to disclose the foreclosure on all future credit applications. You most likely will not be able to negotiate another mortgage for a minimum of 5 years. If you are ultimately evicted from the foreclosed property, you will also face difficulties renting. Most landlords will hesitate to rent to anyone with an eviction on their record.

In the state of California, you have a substantial amount of time to prepare for and avoid foreclosure. Most foreclosures take approximately 8 months to complete, and you will have a minimum of 6 months from the date of your first missed payment to cure your default. Whether you want to protect your home or safely exit your mortgage, our team can assist you in identifying a strategy that will help you avoid foreclosure.

Keeping Your Home

If you want to keep your home, you will need to either cures the default or find a way to modify your existing mortgage agreement to address the default and unaffordable payments. Many loan modification companies or litigation law firms will purport to help you “wipe out” mortgage-related debt or assist you in suing your lending institution as a method of “forcing” a modification. The truth is that these approaches simply don’t work: Even bankruptcy cannot eliminate residential mortgage debt. In order to remain in your home, you must resolve any default and find a way to continue making payments.

If you wish to keep your home, our Irvine foreclosure alternatives Attorney/Realtor can help you explore the following options:

  • Reinstatement. In California, you have the legal right to cure your default and stop foreclosure. Your lending institution must stop foreclosure proceedings if you can catch up on all missed payments (plus accrued interest and late fees) at least 5 days before a scheduled foreclosure sale. Once the default is cured, your mortgage agreement resumes as if nothing had happened. We can assist in facilitating the notification and payment process and help you understand how reinstatement works.
  • Refinancing. Refinancing involves replacing your existing mortgage with a new loan. In order for refinancing to be a viable and beneficial option, you will need to have substantial equity in your home. Current interest rates must also generally be lower than the rate currently associated with your loan agreement. We can help assess whether refinancing is cost-effective and assist you throughout the process.
  • Repayment Plan. Lending institutions will sometimes allow you to negotiate repayment plans.
  • Forbearance. Forbearance allows homeowners experiencing hardship to pause or temporarily reduce mortgage payments. Forbearance does not erase or lower the total amount owed on your mortgage. You will eventually have to repay whatever payments were deferred, so it is important to have a plan for safely exiting a mortgage forbearance. We can help you understand your options and develop a strategy that will help you keep your home.
  • Modification. A loan modification will adjust the terms of your mortgage agreement going forward. The process is designed to allow a homeowner to recover from a default and resume making payments more sustainably at the revised rate. If you meet the narrow eligibility requirements, we can negotiate with your lending institution and work to make your monthly payments more affordable.

Selling Your Home

If you do not necessarily qualify for any of the foreclosure alternatives that would allow you to stay in your home or you determine that remaining is not financially viable, you will need to consider options that allow you to efficiently sell your home and permit you to safely exit your current mortgage agreement. Pursuing these options will help you avoid the taxation and deficiency liabilities that come with foreclosure and eviction.

If you wish to sell your home, our Irvine foreclosure alternatives Attorney/Realtor can assist you with:

  • “Regular” Sales. You have the legal right to list and sell your home, even if foreclosure proceedings have been initiated. If you have considerable equity, you may be able to use the proceeds of the sale to pay off your loan and any liens. We can assist you with any necessary renovations and help you efficiently sell your home at the best possible price.
  • Assumption Sales. You can theoretically sell your home to someone with the understanding that they assume responsibility for the outstanding mortgage loan and any liens. Most buyers will not accept these terms, so these types of sales are extremely rare. If someone has approached you about an assumption sale, reach out to our team. We can determine if the inquiry is a scam or outright fraud.
  • Deeds in Lieu of Foreclosure. This process involves transferring the deed of a property to the lender and voluntarily departing the home as a means of avoiding foreclosure. While this “walk away” strategy can look good on paper if you do not have equity in the property, very few lenders will accept a deed in lieu. Lenders that accept the transfer assume responsibility for all liens, judgments, and other encumbrances impacting the property.
  • Short Sales. A short sale functions as a legal settlement of mortgage default that allows you to sell your home at a price that is less than the outstanding mortgage balance. A short sale is subject to your lender’s approval, but the practice has become a popular and effective foreclosure alternative that tends to benefit all parties. Homeowners who agree to short sales may even receive a cash incentive from their bank.
  • Chapter 7 Bankruptcy-Short Sale Combinations. If you are in danger facing imminent foreclosure, filing for Chapter 7 bankruptcy can protect you and your property via the automatic stay. We can help you combine bankruptcy with a short sale to maximize the incentives and benefits offered by each practice.

Schedule a free initial consultation with our team at Lawyers Realty Group to learn more about how we can help you sell or keep your home. Call (949) 264-0966 or contact us online today!

Have You Experienced Trouble With the Following Lenders, Banks or Servicers?

  • 21st Mortgage
  • Acqura Loan Services
  • Ally Bank
  • American Home Mortgage Servicing
  • Assurant, Inc.
  • Astoria Bank
  • Aurora Loan Servicing
  • Avelo Mortgage
  • Bank of America
  • Bayview Loan Servicing
  • BSI Financial
  • Caliber Home Loans
  • California Housing Finance Agency
  • Carrington Mortgage Services
  • Chase
  • CIT Bank
  • Citi Mortgage
  • Citi Residential
  • Citigroup
  • Countrywide
  • Countrywide Home Loans
  • Ditech
  • EMC Mortgage Corporation / Bear Sterns
  • Fay Servicing
  • FCI Lender Services
  • First Franklin Loan Services
  • First Horizon Home Loans and First Tennessee Home Loans
  • Flagstar
  • FNF Servicing
  • Foothill Financial
  • Freedom Mortgage
  • GMAC Mortgage
  • Home Loan Services
  • Homecomings Financial
  • HomEq Servicing
  • HSBC Finance-Beneficial
  • HSBC Finance-HFC
  • HSBC Mortgage Corporation
  • HSBC Mortgage Services
  • Indymac
  • JP Morgan Chase
  • Kondaur Capital Corporation
  • Litton Loan Servicing
  • LoanCare Servicing Center
  • M&T Bank
  • MetLife Home Loans
  • MidFirst Bank
  • Morgan Stanley
  • Mr. Cooper
  • National City Corporation
  • National City Mortgage
  • NationPoint Loan Services
  • Nationstar Mortgage
  • NewRez
  • Ocwen Loan Servicing
  • PennyMac Loan Services
  • PHH Mortgage
  • Planet Home Lending
  • PMI Mortgage Insurance Co.
  • PNC Bank
  • PNC Mortgage
  • Residential Credit Solutions
  • Resurgent
  • RoundPoint Mortgage Servicing Corporation
  • Rushmore Loan Management Services LLC
  • Santander
  • Saxon Mortgage Services
  • Select Portfolio Servicing (SPS)
  • Selene Finance
  • Seneca Mortgage
  • Servis One
  • Shellpoint Mortgage Servicing
  • SN Servicing
  • Specialized Loan Servicing (SLS)
  • State Farm
  • Statebridge
  • Sun West
  • SunTrust Mortgage, Inc.
  • Taylor, Bean & Whitaker
  • U.S. Bank
  • Vericrest Financial
  • Wachovia
  • Washington Mutual
  • Wells Fargo Bank
  • Wells Fargo Financial
  • Wells Fargo Home Mortgage
  • Wescom Central Credit Union
  • Wilshire Credit Corporation
  • IndyMac
  • JP Morgan Chase
  • National City Mortgage
  • State Farm
  • U.S. Bank
  • Wells Fargo
  • HSBC
  • 21st Mortgage
  • PNC Bank

Committed to Going Above & Beyond for Our Clients

  • “He worked with us in our case and we felt as if he was on the front battle lines with us taking charge.”

    - Julia R.
  • “His commitment and professionalism handling complex and critical real estate matters is top notch!”

  • “A short-sale can be a long, unpleasant dance with the banks, but this team makes it so much easier.”

    - Arnold B.
  • “I can't emphasize how important it is to have legal representation on your side in dealing with the banks, but if you want real representation that's tenacious, honest, professional and successful, you must work with Derik and his team.”

    - Macko M.
  • “I have used several realty companies before and Derik is by far the most professional and exceptional businessman I have dealt with.”

    - Jeremy S.
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