The Foreclosure Process and Your Best Options

foreclosure processTyping the words ‘foreclosure process’ into Google is something no one should have to do, but the harsh reality is this: one out of every 200 homes will be foreclosed upon.

If you feel like you haven’t been given proper notice, then check your state laws. Most states have strict regulations on what constitutes a proper eviction or foreclosure notice. Likewise, if you have not received ample opportunity to pay ahead of the property’s foreclosure sale, you might have cause to challenge the sale. But what if you have received a proper foreclosure notice? Then it is time to talk to a real state lawyer immediately.

While your lawyer will be able to advise you on your specific legal situation, you may also benefit from a deeper understanding of the foreclosure process, which can be stressful and downright terrifying.

The foreclosure process

Step 1. Notice of Default: This is the official notice that the creditor has defaulted on the mortgage loan. In this letter, you will get information about how much you owe, how long you have to pay, and what will happen if you can’t. If you pay the amount due in the time allotted, your house will remain yours. If not, you move to step two. Before you pay anything though, run the document by your attorney. He or she will work toward finding out whether there is anything that would delegitimatize the notice of default, such as failure to comply with state real estate laws.

Step 2. Assess your options: Even when you can’t afford to pay what you owe, you still have options, but they aren’t great. If the foreclosure notice holds up against the law, you can try re-negotiating your mortgage payment plan via a loan modification. This can be tricky, but your lawyer can help you through the process. The second option you have is exchanging the deed for the balance owed. Third, you can short the property for less than the loan. You will still be responsible for the remaining balance, however. These options are best explored with the guidance of a real estate attorney.

Step 3. The House Goes Up For Auction: After the deadline to repay has passed, you will be expected to vacate the premises, and fast. Your creditor, in hopes of recuperating your unpaid mortgage, places your house on an open auction. It is common for creditors to only accept cash at these auctions, so while they often don’t make a huge profit off your house, the bidding usually starts at what you owed.

In the end, foreclosure is never an enjoyable process, but if you get a lawyer you will be on a much better footing for the fight to come. To find out more about past personal property law cases and their outcomes, ask your lawyer or consult the public records in your area.

How Can I Avoid A Property Dispute With My Tenant?

property dispute mediationProperty disputes can be stressful for landlords and tenants alike. In some cases, a property dispute can even escalate to a court setting wherein the judge will hear the trial within 20 days of the filed request.

However, many landlords and tenants prefer to keep their disputes out of the court setting. This is what makes property dispute mediation an often preferred method of action.

Depending on the situation, a property dispute mediation may be necessary. However, there are ways in which you can help to prevent property disputes from occurring by avoiding the following disagreements.

  1. Cleaning the property
    One of the most common property disputes often involves the cleaning of the property. Should the tenant leave the property in a condition that’s worse for wear in comparison to the original state of the property, a dispute between the property owner and the tenant may result. To avoid this type of dispute, the property owner should supply the tenant with a copy of their lease agreement reminding the tenant of the condition of the property prior to their residence. This will help to provide a reference for the tenant.
  2. Property damage
    The second most common property law dispute involves damage done to the property. While tenants must take care to avoid causing property damage while they live in residence on the property, the property owner should always be reasonable in regards to wear and tear. To avoid disputes regarding property damage relating to hanging wall fixtures, etc, it’s recommended that property owners suggest alternative hanging options to their tenants.
  3. Cost of repairs
    Property repairs are often necessary, but the cost of the repairs are often disputed between tenants and property owners. For a property owner to touch the money in a tenant’s security deposit, they must have a significant case for claiming it. In order to avoid real estate law disputes involving cost of repairs, it’s best to be as transparent as possible regarding the price of the repairs.

Disagreements regarding property can’t always be avoided. Should your dispute escalate, property dispute mediation may be in your best interest. Contact a real estate lawyer today at DiJulio Law Group for more information regarding property law mediation.

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California Real Estate Law Requirements Every Home Seller Should Know

real estate lawThere are multiple legal requirements every homeowner should be aware of when selling a home in the state of California. Being aware of these real estate law requirements will help you avoid potential liability after the sale of the home, but it will also make the process itself much easier to understand.

Your real estate lawyer will most likely assist you during the sale of the home. However, it’s beneficial to be in the know about these property laws to ensure the procedures, disclosures, and transactions proceed as smoothly as possible.

You must disclose all adverse information about the property
According to California real estate law, property sellers must disclose any information about the property to the potential buyers that may make the property less appealing or may reduce property value in any way. For instance, should a death occur on the property within three years of the sale, you must disclose this information to the potential buyers under California real estate law.

A property seller may face severe legal consequences should they fail to disclose any adverse information about the property. If you’re unsure whether or not it’s necessary to disclose specific information, consult your real estate attorney or simply include the information to be safe. Additionally, this information must be handwritten.

Escrow agents are necessary for California home sellers
In the state of California, home buyers and sellers are required to use an escrow agent and company during the sale of the house. The home seller will place the deed of the house in escrow and the home buyer will deposit the funds for the home in escrow.

During this time, the escrow company will hold onto both the deed and funds until the legal conditions of the sale are complete. However, it’s important to know the differences of escrow according to the home seller’s location.

For instance, an independent escrow company is typically used in Southern California, whereas in Northern California the escrow agent during the transaction is typically the same as the title company. Ultimately, who pays for and who performs the escrow services may be decided by the home seller and buyer.

A transfer tax may need to be paid by the home seller
A document proving the change of ownership of a property must be recorded at the California county recorder’s office when a property is transferred from a home seller to a home buyer. And, naturally, a transfer tax is imposed at this time by the county. In some cases, the tax may also be imposed by the city of the home seller.

The real estate industry standard typically requires the home seller to pay the transfer tax when the property is being sold in Southern California. The transfer tax is often paid by the homebuyer should the property be sold in Northern California. However, as in the case of the escrow services, who pays the transfer tax can be negotiated between the buyer and the seller before closing on the home.

It’s always beneficial to understand the real estate laws in your state, especially since these rules can vary widely across state borders. For more information on California real estate contracts and real estate law terms, contact DiJulio Law Group today.

My Agent Failed To Disclose Defects Of A Property To Me. Can I Hold Them Liable?

failure to disclose defectsAccording to the National Association of Realtors, up to 77% of home buyers will have an inspection of the house done before they agree to sign any documents and purchase the home. Home inspections are essential to ensuring you’re getting what you paid for and for avoiding nasty surprises in the future.

Fortunately, in the state of California, real estate law requires all residential real estate agents to disclose any defects or issues with the property before selling it to buyer. Failure to disclose defects of the property may result in criminal charges of misrepresentation, fraud, and/or deceit.

What laws protect me from an agent’s failure to disclose defects?
Laws pertaining to a failure to disclose defects regarding a property are the Common Law and the Statutory Law of California.

According to the Common Law of California, or Lingsch v. Savage 1963, the property seller and agent must inform the property buyer of all features or instances that may have impacted the value of the property.

These instances include deaths on the property, water damage, or pest infestations. Should the seller or agent fail to disclose this information before the signing of real estate contracts or in the contracts, they may then be held potentially liable for any damages.

Under the California Civil Code section 1102 in the Statutory Law of California, the seller of the property is required to procure a Transfer Disclosure Statement to the buyer in any document or real estate contract involving real property. The statement should include in-depth information about the property including natural hazard exposure, industrial use issues, dangerous conditions, physical burdens, etc.

Because of the extensive list of disclosures it may be in your best interest to have a real estate lawyer look over the document so there are no surprises later on.

Under what circumstances can I not hold the seller liable?
The seller of the property can’t be held liable for failure to disclose defects if the seller was not personally aware of the defects. However, there must be proof of an inspection having been performed in order to claim ignorance. If a reasonable inspection doesn’t reveal any property damage or issues and the property seller is unaware of the defects, they can’t be held liable in the future.

Additionally, it’s the property buyer’s responsibility to have the property inspected before purchasing. Under Loughrin v. Superior Court 1993, a seller can’t be held liable for failing to disclose defects of the property if the defects were easily visible or could be found during a regular inspection.

Only if the buyer has an inspection performed and the inspector is unable to locate anything wrong with the property and only if the seller is aware of the non-observable defects in the home can they be held liable.

Before signing a real estate contract with any property seller, it’s a good idea to have a real estate law firm look over the documents. Having an inspection performed on the property and a real estate lawyer California trusts analyze the finer details of the property transaction will grant you a better chance of being swindled.

What Defense Do I Have As A Commercial Tenant?

the role of property law in businessIn the case of eviction many Californians believe the rights of the tenant under state law only apply to those who are evicted from residential buildings such as apartments, townhouses, or houses. However, this isn’t true. The role of property law in business is quite resilient.

If you’re a commercial tenant in the state of California, you and your business have a number of affirmative defensive actions you can take against your commercial property owner in an eviction case. The following are some of the most common defensive actions a business can take when they are facing unlawful detainer action:

Defense against retaliatory eviction
In residential properties, the property owner must give the current tenant a total of 60 days notice before they must leave the property if they have been living there for over a year. During this time, the property owner cannot act in such a way that may be threatening as this not only breaks property law, but also may be taken into account as a part of retaliatory eviction. Retaliatory eviction is when the property owner evicts, or attempts to evict, the commercial tenant for an inappropriate reason as an act of retaliation against the tenant for previous actions.

That is, if the tenant cited problems with the property and the property owner followed this complaint with evicting the tenant or raising the rent considerably. Under the law of the California Supreme Court, both commercial tenants as well as residential owners have the ability to defend themselves in court in the case of retaliatory eviction.

Defense against construction eviction
A commercial tenant is granted the right to peaceful and beneficial possession of the property in which they rent. Because of this, a tenant can argue against their eviction by citing construction problems with the property that interfere with their ability to live peacefully.

For instance, if a commercial tenant requires parking for their business, but the parking is not available or is being used by the property owner and the tenant is given an eviction notice after complaining it may be safe to argue that the tenant is being faces with construction eviction.

The role of property law in business is alive and well. If you’re a business being faced with unlawful detainer action, you can challenge your eviction case against your property owner with retaliatory eviction and construction eviction claims should you have evidence of either. Property law and the rights of the tenant during the eviction process do not only apply to residential tenants or property owners. The role of property law in business is yours to use at your proper defense.

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