If you’re facing a possible foreclosure on your home, you’re probably very stressed out and worried about a lot of complicated problems — from the daily tasks like getting dinner on the table, to the long-term possibilities of not having a home anymore. Your best option is to contact a real estate attorney with experience handling the foreclosure process. In the meantime, however, here are a few possible ways that you may be able to stop the foreclosure process on your home:
- Bankruptcy: Filing for bankruptcy is a pretty drastic measure to take if you’re faced with foreclosure, but it’s sometimes the best option if you’re dealing with a lot of debt to multiple lenders. It will hurt your overall credit score for quite a while but you’ll likely receive an automatic stay on your home until the court can decide how to proceed with your case.
- Loan Modifications: In the state of California there’s something called a Homeowner Bill of Rights, and this means that loan servicers must either grant or deny a first-lien loss mitigation application before the foreclosure process begins. This prohibits a practice called dual tracking, which is when the lender proceeds with a foreclosure even as a loss mitigation application is pending. This isn’t a long-term fix, but it can give you some time to make a plan while still living under your own roof.
- File a Lawsuit: If your lender isn’t processing the foreclosure while abiding by all state and federal regulations, you may be able to file a lawsuit to stop the foreclosure of your home. In this case, you’ll need to prove that the foreclosure is not valid and therefore shouldn’t take place because the lender is at fault. The specific reasons might include the lender’s violation of the Homeowner Bill of Rights, the lender neglecting to follow all steps in the foreclosure process, or the lender making a grievous error which has affected you.
It’s very important to understand that, if you’re facing a possible foreclosure, you don’t have to face it alone. It’s estimated that around one in every 200 homes is foreclosed upon (and this was even cut in half to one in every 96 homes back in 2013). Considering that the average Californian home costs around $393,000, you’re dealing with some pretty heavy financial stuff — and turning to a real estate lawyer for help is always a good idea.