San Diego Foreclosure Defense Attorney – 888.875.9190
Foreclosure is not a simple process by any means, especially if you are not well-versed
in the laws that govern how it is carried out. It can also be intimidating
to know that your future financial stability is potentially on the line.
All in all, foreclosure can lead to confusion among the best of us.
In order to try to cut through some of the uncertainties, our San Diego
foreclosure defense attorneys at San Diego Legal Pros have compiled a
helpful list of frequently asked questions about foreclosure in general.
Be sure to give it a review if you are entering foreclosure or think it
could reasonably be on your horizon. You can also
contact our firm by calling
888.875.9190 to set up a
free consultation if you would rather speak directly with our friendly and knowledgeable
team about your foreclosure.
Frequently Asked Questions About Foreclosure
Can I use a
short sale when my house is facing foreclosure?
When you use a short sale to sell your home, you are asking for a sale
price that is actually less than you owe to the lender or the bank. Before
you can complete a short sale, you need to get permission from that lender
and ask them to wipe the lien off the property. With a lien in place,
you will be hard-pressed to find a buyer, who would then inherit that
lien and effectively your debt. You should also be aware that in some
circumstances, the lender can file a claim against you for the difference
between the sale price of your foreclosed home and your owed loan if you
do complete a short sale.
bankruptcy stop a foreclosure, or just delay it?
Filing for bankruptcy will not end a foreclosure but it will freeze it
automatic stay. As a bit of temporary cure-all, an automatic stay tells all creditors
and collection agencies, including banks, to cease their actions against
you in pursuit of a debt, such as foreclosure. Generally, an automatic
stay buys you a few months to breathe and create a plan in peace.
I’ve heard about deeds in lieu of foreclosure –
what is that?
In an uncommon occurrence, you might be able to hand control of the deed
directly back to your lender if your home is being foreclosed. If this
is something you are considering, talk to a bankruptcy attorney about
including a clause in your deed in lieu of foreclosure agreement that
will drop all deficiencies so you cannot be sued later for what you didn’t pay.
I rent out a property that is being foreclosed – what will happen
to my renters?
Typically, when a foreclosure occurs, any leases being fulfilled by renters
or tenants will also be closed out. In California, tenants are still owed
at least 60 days to know about the foreclosure and the lease’s end,
giving them time to look for a new home or office location.
Can I ask my bank to help me avoid foreclosure?
Sometimes a bank understands that a foreclosed home and a bankrupted lien
holder brings them no money. Instead of pursuing foreclosure at once,
you may be able to negotiate the terms of your loan with the bank to keep
you both financially stable. A bankruptcy lawyer in your corner can make
this process simpler.
Is my foreclosure going to hurt my credit?
A foreclosure on your home will probably lower your credit score considerably.
While this is not ideal, it is also not the end of your financial situation
by any means. With the right tools and preparation, you can
rebuild your credit after a while.
Remember to reach out to our San Diego foreclosure defense attorneys the
moment you have uncertainties or questions about foreclosure. We would
be happy to explain more during a
free initial consultation.