Prior to a Notice of Default can be filed, the California house loan foreclosure laws demand that loan companies comply with Civil Code section 2923.5. This California mortgage foreclosure law requires the lender to make efforts to get in touch with the borrower to determine alternatives options to foreclosure, 30 days prior to submitting the Notice of Default.
Notice of Default Method
The California mortgage loan foreclosure laws also provides for the Notice of Default procedure in Civil Code section 2924.
“This California mortgage loan foreclosure law specifies that the Notice of Default is recorded in the workplace of the recorder of every county wherein the mortgaged or trust property or some part or parcel thereof is situated. The Notice of Default is also published in a newspaper of basic circulation inside the county.”
Furthermore, the California house loan foreclosure laws require that a copy of the Notice of Default is mailed or delivered to the property proprietor.
The language in the Notice of Default file itself is also specified in the California mortgage loan foreclosure laws. Even though this file appears to be quite cautiously worded, it has produced confusion for the several home owners who have obtained one, simply because this file indicates that the house might be sold at an auction. As a result, numerous house proprietors mistakenly believe that this report is a Notice of Trustee’s Sale. Nevertheless, the Notice of Trustee’s Sale will include the scheduled public sale date – the Notice of Default does not include an auction date.
Notice of Default and Loan Modification
Often property owners obtain a Notice of Default even though they are actively pursuing a loan modification with their lender. This often produces fear and panic simply because several property owners looking for loan modifications were direct to think that the negotiations were proceeding nicely. This event may also produce achievable appropriate issues because, obviously, the loan company is shifting forward with the foreclosure method before completing its evaluation of foreclosure alternatives – the authorized situation arises since Civil Code section 2923.5 demands this analysis 30 days before sending out a Notice of Default.
Unfortunately, loan modification approval rates are hovering well below 10 percent. It is becoming increasingly clear that the attorney-direct loan modification programs are failing horribly! Borrowers’ backs are in opposition to the wall and many are submitting lawsuits in an effort to avoid foreclosure. The only true winners are the attorneys.
The problem is that most legal professionals are employing lawful tactics in an effort to resolve financial problems. There is a major disconnect here! Lawyers generally carry out their appropriate maneuvering without really understands the borrowers’ (complicated) financial issues and the lenders’ financial stress factors.
Residence owners need an alternative to the typical lawyer-based mostly negotiations. Fortunately, a significantly better alternative does exist.
The borrowers’ financial problems and the lenders’ financial stress factors should be understood and then used in the negotiations with the loan companies to discover the middle ground. While the law firm-based method may be helpful for making delays in the approach, unless some financial creativity is injected into the process, you cannot expect your lawyer to force the lender’s legal professional to agree to something basically since you want them to.
You Need to Have a Foreclosure Avoidance Staff
Rather, property owners should work with a foreclosure avoidance team that understands the lenders’ financial stress factors and understand how to use them to your advantage. The process must also include a thorough financial evaluation to determine all the essential concerns. This leads to an evaluation of feasible possibilities to resolve the matter in a way that is helpful for you, the borrower, while convincing the financial institution that they are absorbing the minimum price compared to what they would encounter should they not approve the request. By approaching the subject in a way that tends to make sense for the loan company (minimizing their losses), you can get them to say “YES” to your proposal!
Lawyers are an important part of the team, as they have the experience to resolve authorized problems that might arise. Following carrying out a thorough analysis, an lawyer might be required to implement parts of the strategy. For example, a forensic loan audit may be advised based on your circumstances, and it might determine contractual defects in the loan file that violate State or federal laws. This is an critical stress point that should be included in any negotiation. Or, other authorized issues might be recognized that require the use of “big guns”.
In summary, think of your foreclosure avoidance group as a toolbox. You will need to have the appropriate set of tools (specialists) to do the right job. Most distressed borrowers need experts in finance, income taxes, real estate product sales, appraisal, legal, and so on. At this crucial juncture, it is completely important that you have a team of specialists to assist you be sure that you get the most favorable outcome possible, not just a legal professional.