San Diego Foreclosure Defense Lawyer
Foreclosure & Bankruptcy
If you are facing the possibility of foreclosure and don't see how you can recover from the situation, don't despair. You actually have many options available and a San Diego bankruptcy attorney can help you to understand these and the rights you have. One of these options is a Chapter 7 bankruptcy. In California, your home is protected during such an action if you meet certain requirements. If you are single and have less than $50,000 equity in your home, or married and have less than $75,000 equity, your home is not at risk from a Chapter 7. The same applies if you are over 65, disabled, and have less than $150,000 in equity.
At San Diego Legal Pros, we can help you with the following:
- How foreclosure affects your credit
- Predatory mortgage services
- Short sale
- Loan modification
- Strategic default
- Wiping out 2nd mortgages
Facing bankruptcy is never easy, but having an experienced lawyer figure out what bankruptcy options are best for your financial situation can help. Many times, filing for bankruptcy is intimidating and full of uncertainty – people are afraid that they will lose all of their belongings. However, Chapter 7 bankruptcy allows for some property to be exempt. For instance, if your house meets certain qualifications it may be exempt from liquidation. Your car and other belongings may be exempt as well. Bankruptcy laws are enacted to give people a fresh financial start, not necessarily to liquidate all of their personal belongings.
If you do not qualify for a Chapter 7, a Chapter 13 may be a viable solution. As your mortgage payments can be included in the payment plan of this action, you have a chance to get back on top of these payments. You are also assisted by having your other payments arranged to a more affordable level. In this situation, the bank may not foreclose on your house if you continue to make your post-petition mortgage payments.
Options for Avoiding Foreclosure
There are also other approaches to your financial situation that may help you to avoid foreclosure. At San Diego Legal Pros, we can review these with you and help to determine which would be the best option according to the specifics of your case and your financial goals. A loan modification may be enough to make your mortgage manageable and we can help you to pursue fair and advantageous terms. In some cases, debt settlement or debt consolidation that addresses your unsecured debts can make enough of a difference to allow you to meet your mortgage obligations.
In short, a loan modification allows the debtor the opportunity to modify their mortgage so that it differs from the original agreement – usually giving the debtor more time to pay off their financial obligations. Loan modifications may involve a variety of changes, including a principal reduction, reduction of late fees, or lengthening of the amount of time the debtor has to pay off the loan. Loan modifications may also result in reduced interest rates or capping of the monthly payment that the debtor owes. In many cases, loan modifications involve reassessing the debtor’s situation in terms of percentages to see how much of their monthly income they can reasonably devote to paying their mortgage.
Debt consolidation may be another viable option for families or individuals facing financial hardship. In essence, debt consolidation takes all of the debtor's individual debts and blends them into one, more manageable debt. This reduces the number of smaller bills you have to pay each month, and hopefully reduces the monthly amount that you owe towards your debts. Speak with a lawyer from our firm to learn more about your debts, loans, or other financial obligations.
Contact a San Diego debt lawyer to
review possible options for avoiding foreclosure.