TENANTS LEGAL CENTER
INFORMATION AND PROGRAMS
NOTE: Due to the rapidly changing political and legal approach to foreclosures, any Federal or State program and their details may change or be set to expire or be extended. Therefore be sure to check that any program you seek assistance from is still in effect and is applicable to you and your situation.
Keep your Home California
FEDERAL PROGRAM OFFERS ASSISTANCE AND POSSIBLE COMPENSATION
Certain Homeowners who were impacted by a foreclosure mat seek an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations, or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy
REFINANCE YOUR LOAN BUT BEWARE OF UNETHICAL LENDING PRACTICES
Beware of unethical or fraudulent lenders. These predatory lenders take advantage of people unfamiliar with loans and those put in crisis by impending foreclosures. They claim to be able to save your home but many times they really are working to take it away from you. Have any deal to save your home reviewed by an attorney or financial professional that you trust before you sign any loan modification or refinancing agreements.
BEWARE OF BUSINESSES PROMISING LOAN MODIFICATION ASSISTANCE
Consumer Tips for Avoiding Mortgage Modification Scams and Foreclosure Rescue Scams
Many homeowners have been taken in by such offices promising to help modify the loans facing default,. They target desperate and frightened homeowners with promises to save the home with a new loan. They charge hefty fees of $2,000.00 and much more. The truth is that we have seen many homeowners coming to us for assistance with an eviction who have paid these fees and received nothing. No new loan. No loan modification. Sometimes, no more communication with that office after the money is paid. Be very careful before hiring such an office. Try to work with eth lender yourself. If they are not responsive, have a real estate, loan or legal professional simply call them for you. Many times, that is all that is needed to get the process stated. California has s STOP MORTGAGE FRAUD program to protect homeowners seeking loan assistance.
Bankruptcy may assist in limiting liability or debts. For some people, Bankruptcy may be used to buy some time in the effort to save their home from foreclosure. Strict Federal laws on the subject have made saving the home using this procedure more difficult than it used to be. These laws are complex and subject to changes and modifications at any time, Bankruptcy laws are complex and there are many considerations to review before taking this step. You should absolutely seek the guidance of a competent bankruptcy attorney for advice before planning or taking any such action.
LOSING THE PROPERTY BY FORECLOSURE
IMPACT ON CREDIT
A foreclosure or short sale can have a negative impact on your credit for some time to come.
IMPACT ON TAX CONSEQUENCES
A foreclosure or short sale can have tax consequences due to a loan "forgiveness" being considered as taxable income. The law varies in different States. The Federal Government has addressed this issue in the past and continues to do so with proposed laws, amendments, extensions of prior laws, potential new laws etc.. Therefore, you are urged to seek the advice of a tax professional when making any decisions about any property loan.
This is where the lender comes after the borrower in court after a foreclosure for the remaining balance owed on a loan. That is called a deficiency judgment. Generally, in California, first money home loans are protected from this in nonjudicial foreclosures. Be advised that you may not be protected with refinancing that first loan, second mortgages and Home Equity Lines of Credit. Lenders may try and use a judicial foreclosure to get a judgment. The rules in other states vary. The lender may also seek a deficiency balance owed after a short sale unless you get that debt released in writing. You should seek the advice of a real estate professional before making and decisions regarding foreclosure or signing any sale agreements.
NOTE: We are not tax attorneys. We cannot and do not give tax advice. Any tax law or regulation referenced or examples given may or may not apply to you and that is why we urge you to seek the advice from a tax professional before making any financial tax related decisions or taking any actions which may have tax and/or financial implications.
This is where a nonjudicial foreclosure auction sale occurs. If your home makes it to a foreclosure (Trustee) sale, and you could not prevent it, then you should appear to witness what happens. You will see who buys the home and for how much. These are important pieces of information that will come in handy.
California law for San Diego is applied in these pages. Such laws may or may not be applicable in other jurisdictions. The information provided herein is of a general nature and is not intended to be taken as specific legal advice. For legal advice in a particular situation,