califonia-title

Foreclosure Options

Predatory Lending

From 2000 to 2005, anyone that came into our office seeking bankruptcy help but owning real estate, generally was advised not to file for bankruptcy protection. This was because they almost always had too much equity in their property and would lose it should they file. So instead, a refinance was in order, money was then pulled out, and the personal debt was traded for a higher mortgage. However, this only works in an appreciating real estate market where money is still available for loans.

Things have now changed. The money is no longer available by lenders for a refinance. Many lenders themselves now have filed for Bankruptcy. Interest rates have increased. Most people have exploding option adjustable rate mortgages where payments nearly double after 2 to 5 years. The home values are dropping. Its the "Perfect Storm" for real estate bankruptcy.

Nowadays, more than 70% of our bankruptcy clients have real estate and nearly all of them are letting their house go. And its not their fault! They are victims of the housing bubble and predatory lending. Many of the loans these people have are Illegal! So generally the best option for the homeowner is surrender. This is primarily because the home that is costing $4000 per month (first mortgage, second mortgage, HOA, taxes, insurance, etc) can easily be rented for $2000. It's a no brainer. Why keep a home when you can rent the same home in your neighborhood paying 1/2 the money, which has little if no equity, which has an interest rate that is only going up, and which is generally a maintenance and upkeep money pit?

When we see these situations, we engage our "Housing Rehabilitation Program" to help clients recoup what they may have lost as a result of predatory lending and the housing bubble. Strategically, using Bankruptcy and other laws, we have developed a program that allows the homeowner legally remain in their home generally 6 months to a year, PAYING NOTHING. This is all totally legal and the lenders know this! At $4,000 per month for 12 months, thats nearly $50,000 back in our client's pocket, which they never would have netted in a sale! Moreover, our after bankruptcy credit repair program then prepares them for the purchase of a new home once the market changes. Bankruptcy atorney Michael Doan is also a Mortgage Broker and works hand in hand with Young Mortgage and First Platinum Properties to put them back in a new home in the future.

Foreclosure Options

A foreclosure occurs when a lender repossesses a debtor's home. In order to foreclose in California, a mortgage lender must comply with State Law and file with the County Recorder a document known as a Notice of Default, or NOD. This must be served upon the homeowner. Such notice gives the homeowner ninety days to bring the delinquency current. If the delinquency is not cured or other arrangements are not made, the house will typically either get sold at a subsequent auction or taken back as real estate owned by the lender.

At times, foreclosure can be the best option for some debtors depending upon their unique circumstances. Careful analysis must take place and timing is extremely important.

Chapter 13 Bankruptcy

One should also carefully consider Chapter 13 Bankruptcy, which allows mortgage arrearage to be repaid over a three to five year period. In some cases, judgment liens and second and third mortgages which are wholly unsecured can be avoided and classified as unsecured debt. An experienced attorney will help you decide if Chapter 13 Bankruptcy is right for you. For more information on Chapter 13 Bankruptcy, click here.

Loan Modification

Lenders are now more willing than ever to modify your loan to avoid them having to report another foreclosure. Mortgage lenders have "Loss Mitigation Rules" which allow them to reduce the interest rate, forgive arrearage, reduce the principal, move payments to the back of the loan, etc. However, trying to speak to someone who has the authority to enter into a loan modification can prove very frustrating for the average homeowner. Doan Law Firm has partnered with experts in loan modification programs. If you are interested in our Loan Modification & Foreclosure Workout Program, contact us today.

Short Sale

A "short sale" takes place when a debtor sells his/her property for whatever the market will bear, and a lender agrees to accept less than what is owed them. The lender is "shorted" out of some money, hence the name. Several Doan Law Firm attorneys are also real estate brokers who have experience with short sale transactions. If you are interested in our short sale services, click here for more information.

Deed In Lieu of Foreclosure

Sometimes a lender would rather you deed the property back to them rather than go through the foreclosure process. This saves them money and allows you to avoid a foreclosure. However, there may be debt forgiveness and capital gains tax consequences which should first be carefully examined.

 







  •          

    Laguna Hills Bankruptcy
    25401 Cabot Rd.
    Suite 113
    Laguna Hills, CA 92653
    Call 888-362-6529

    Santa Ana Bankruptcy
    930 West Seventeenth St.
    Suite C
    Santa Ana, CA 92706
    Call 714-795-3536

    Corona Bankruptcy
    1411 Rimpau Ave.
    Suite 108
    Corona, CA 92879
    Call 909-708-4597

    Moreno Valley Bankruptcy
    24490 Sunnymead Blvd.
    Suite 101
    Moreno Valley, CA 92553
    Call 951-579-4756

    Watsonville Bankruptcy
    444 Airport Blvd.
    Suite 109
    Watsonville, CA 95076
    Call 888-362-6529

    Oceanside Bankruptcy
    1930 S Coast Hwy
    Suite 206
    Oceanside, CA 92054
    Call 760-450-3333

    Chula Vista Bankruptcy
    333 H Street
    Suite 5000
    Chula Vista, CA 91910
    Call 619-500-6535

    Escondido Bankruptcy
    320 East 2nd Ave.
    Suite 108
    Escondido, CA 92025
    Call 760-746-4476

    La Mesa Bankruptcy
    4817 Palm Ave.
    Suite I
    La Mesa, CA 91942
    Call 619-462-362

    San Diego Bankruptcy
    185 West F St
    Suite 100
    San Diego, CA 92101
    Call 619-234-3626