How to Stop Foreclosure: Know Your Options

California homeowners have been hit hard with toxic mortgages, declining property values and under employment. Many of these homeowners thought they could refinance their adjustable rate mortgages into a fixed rates, or sell their homes for profit. No one expected what we have seen in the real estate market.

Government Programs

The governments HAMP program doesn't appear to be helping the people who need it most, and with so many foreclosures and short sales it's impossible to take advantage of today's low fixed interest rates. Many of theses troubled homeowners are searching desperately for means to avoid foreclosure and save their homes. So, how do you stop a foreclosure?

Legal Options for Stopping Foreclosure

The only for sure way is to file bankruptcy or sue your lender and hope you get a TRO (Temporary Restraining Order). If you are in foreclosure and file a chapter 7 bankruptcy you can delay the foreclosure process with an "automatic stay" but your lender can get a "relief of automatic stay" and foreclose. If you want to save your home from foreclosure and repay the past due mortgage payments you can file a chapter 13 bankruptcy and repay them through the chapter 13 plan.

Lender Lawsuit

If you feel you have been a victim of mortgage fraud, predatory lending or unfair business practices, you can sue your lender. While a lawsuit could tie up the property with a lis penance for some time, it could run thousands of dollars.

There have been recent cases of "produce the note" and "mortgage fraud" that have challenged the lenders ability to foreclose. There has also been some cases where these people might have received significant principal balance reductions.

Chapter 13

Stopping a foreclosure with Chapter 13 bankruptcy is a fairly simple process if you hire the right bankruptcy attorney. If you are trying to stop a foreclosure with bankruptcy, or think you are a victim of mortgage fraud the attorneys at Zhou & Chini offer free & confidential consultations. We will be happy to see if you qualify for Chapter 7 or Chapter 13 bankruptcy and explain all your options. Call us today at (800) 972-9600.