Foreclosure Defense in Sacramento, CA
Are you currently facing a threat of foreclosure in Sacramento, California or are already going through proceedings? Consult with an experienced foreclosure defense lawyer to find out what your options are to save your home.
What Is Foreclosure?
The process begins when an Sacramento, CA homeowner does not make a mortgage payment. Homeowners in Sacramento have a grace period of 10 to 15 days extended to them once they default on a mortgage payment. If the breach of the mortgage contract is fixed after a period of 120 days, the lender can begin to foreclose. If after this time, the homeowner has not resolved the payment issue, the lender can begin to foreclose on the house. The home is sold to recover the losses caused by the owner being unable to pay their mortgage as stipulated in the mortgage contract.
Foreclosure By Power of Sale
The power of sale is a clause in the mortgage or deed of trust. It states that the lender can foreclose without court oversight. If you are a resident of Sacramento, The Judicial Branch of California states that you must be served by the lender with a letter stating that you are in breach of the loan. Once the loan agreement has been breached, you will receive a notice of default. You’ll have 3 months to make your payments and bring everything back into order.
If you fail to do this, the lender will post a notice of sale on the property, and deliver a notice of sale to you. In addition, they must publish the sale in a Sacramento paper for 3 consecutive weeks. However, your lender must contact you about loss mitigation options, and try to avoid foreclosure if possible. If the lender can prove that you meet these criteria, they can sell the foreclosed home.
Foreclosure By Judicial Sale
Foreclosure by judicial sale involves the sale of a mortgaged property under the supervision of the court. The court proceedings work first to satisfy the mortgage, then to satisfy the lien holders, and then to the lender. Foreclosure by judicial sale requires the lender to navigate the legal process carefully to ensure anyone who buys the foreclosed property legally owns the title.
Types of Foreclosure Defenses
If you’re in the process of foreclosure, you’ll want to do everything in your power to stop the foreclosure. Here are common foreclosure defenses your Sacramento attorney might recommend.
The Bank Didn’t Follow State Procedures
The foreclosure process is complicated and time-consuming; oftentimes, that leads to errors. If the bank or other lender didn’t follow Sacramento, California foreclosure procedures, you might have a good case for stopping the foreclosure.
The Mortgage Servicer Made Mistakes
It is possible for mortgage services to make mistakes when handling homeowners’ accounts. Here are some of the most common mistakes to look out for:
- Dual tracking, which means pursuing foreclosure at the same time a different loan modification is pending
- Sending your mortgage payments to the wrong party
- Overstating the amount of money you owe for your mortgage payments
- Imposing excessive fees for late payments that weren’t stipulated in the mortgage contract
If you think the mortgage servicer made these or other mistakes, contact an attorney in Sacramento, CA right away to help you stop the foreclosure process. This is one of the best options available to help you save your home.
You’re on Active Duty
The Servicemembers Civil Relief Act (SCRA) provides special protections to people who are on active duty. This prevents lenders in Sacramento from being able to foreclose your home without a proper court proceeding. It allows you to provide a defense with the help of an experienced foreclosure attorney.
The main protection is if you took out your mortgage prior to being on active duty, the foreclosure proceedings must occur in court even if that is not the norm unless you sign a waiver for the lender.
The Foreclosing Party Lacks “Standing”
The foreclosing party is the party that owns the loan. If the lender can’t prove that they own the loan, then that means they lack “standing”. They then can’t foreclose the home.
This actually happens a lot because banks often bundle your loan with other loans and sell them to other banks or investors. This can make it difficult to track who exactly owns the loan for your house.
The Statute of Limitations Has Passed
The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed since they stopped making their mortgage payments. Believe it or not, some mortgages or missed payments do slip through the cracks.
The California Department of Real Estate explains that there is no set statute of limitations in regards to foreclosure in California. It mainly comes down to the language and provisions laid out in your mortgage contract. Some properties may have a statute of 10 years, some may extend as far as 60. The best way to ascertain what the statute of limitations is, if any, for your property would be to seek the help of an attorney. They can help you review your mortgage agreement.
Additional Foreclosure Defenses
Here are some less common foreclosure defense options:
- You’re already making payments on a loan modification, which means the foreclosure should not have been initiated.
- You believe the lender violated federal regulations if you have a VA, USDA, or FHA loan.
- You never received a breach of contract letter from the lender informing you of the violation of your mortgage contract or deed of trust.
Preparing for the Foreclosure Defense Process
When an attorney takes on your case in Sacramento, California, it’s important to remember that there are no guarantees that you’ll win, but your chances just climbed higher. Each foreclosure case is unique and requires a deep understanding of your state’s foreclosure laws. A good attorney knows how to navigate the court system. And will help you find any and all loopholes that can work to your advantage.
If you live in a state where foreclosures always happen in civil court, your attorney will simply bring any issues with the foreclosure up to the judge. If you live in a state where foreclosures typically happen outside of the court system, you and an attorney may have to start the judicial process by filing a lawsuit against the at-fault party. Many foreclosures in Sacramento are non-judicial. But if your attorney files suit to stop the foreclosure, the civil division of the Superior Court of Sacramento hears many of these cases. Even if you cannot stop the case, the attorney can help you stall the process while you get your affairs in order.
Work with an Experienced Foreclosure Defense Lawyer in Sacramento, California
Even if you feel you don’t have a viable case, an attorney may find solid grounds for fighting the foreclosure. Consulting with an Sacramento, CA attorney is an objective way to find out if your case is worth going to court. Most first-time consultations with a lawyer are free, which means there’s no risk involved.
Take the first big steps toward fighting to keep your home. You can also delay the process for as long as possible until you find a new one. We can even help you connect with an attorney across California state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!