STOP YOUR FORECLOSURE SALE NOW!

Preventing and postponing the Trustee auction is your first necessity. Once your property is sold at the Trustee Auction either to a Third Party or back to the Beneficiary (bank) the action is nearly impossible to reverse.

If your lender/servicer did not follow Federal and California State Law including the California Homeowner Bill of Rights they may be liable and an injuction my be filed to stop the foreclosure action.

California Homeowner Bill of Rights
The State of California recently reinstated and amended its Homeowner Bill of Rights, which previously expired on January 1, 2018. The Homeowner Bill of Rights contains various foreclosure protections for borrowers pursuing loan modifications or similar foreclosure prevention alternatives. The law becomes effective on January 1, 2019.

The Homeowner Bill of Rights provides for a variety of requirements and prohibitions in connection with foreclosures. These provisions generally apply to first lien loans secured by owner-occupied homes. Among other things, entities that foreclosed on more than 175 homes during the prior reporting year are prohibited, following submission of a complete loan modification application, from recording a notice of default or notice of sale, or conducting a trustee’s sale (if an application is submitted at least 5 business days prior to a scheduled sale) until the borrower: (i) is provided a written denial of an application (including the reasons for denial and foreclosure prevention alternatives) and the 30-day period to appeal the denial expires; (ii) does not accept a written offer to participate in a modification within 14 days; or (iii) defaults under an accepted modification. Further, prior to recording any notice of default: (i) the borrower must be given written notice of protections that may be available under the federal Servicemembers Civil Relief Act and the right to request copies of the evidence of indebtedness and security instrument, any assignment, and payment history since the borrower was last less than 60 days past due; and (ii) 30 days must pass after contacting the borrower or after making diligent effort to do so. In addition, a notice of default also may not be recorded if the borrower is approved in writing for a foreclosure prevention alternative, and certain other specified conditions are met.

If a foreclosure prevention alternative is offered, a servicer must generally send written communication providing specified information about the alternative within 5 days after recording a notice of default. If an alternative is approved, a servicer is prohibited from recording a notice of sale or conducting a trustee’s sale if specified conditions are met. A notice of default must be rescinded, and a pending trustee’s sale canceled, upon execution of a permanent foreclosure alternative. The law prohibits fees from being charged in connection with a modification or foreclosure prevention alternative, and requires that modifications and prevention alternatives previously approved must be honored following transfer or sale to another servicer. The law also requires that a notice of default must include a specified declaration regarding contact with the borrower, and provides that a mortgage servicer satisfies specified telephone contact requirements in this regard if the borrower makes a written request to cease communications. Certain technical changes have also been made to provisions requiring a servicer to establish a single point of contact for a borrower requesting a foreclosure prevention alternative. The law also defines what it means for a loan modification application to be “complete.”

Violations of the above provisions may result in liability to borrowers, as well as awards of the greater of treble damages or statutory damages of $50,000 for intentional or reckless violations. Violations of certain provisions by CFL, CRMLA, and REL licensees may be deemed violations of those respective licensing laws. Mortgage servicers engaging in multiple and repeated filings of unsubstantiated foreclosure documents may be subject to a civil penalty of up to $7,500 per lien and further administrative enforcement.

Additionally, the law provides that any amendment, addition, or repeal of a section of the Homeowner Bill of Rights does not release, extinguish, or change any liability under a previous section that was in effect at the time of an action. The law also generally subjects entities that foreclosed on fewer than 175 properties during the prior reporting year to similar, but in some cases less stringent, requirements and restrictions.

A copy of the reinstated California Homeowner Bill of Rights, as amended, is available here.

Chapter 13 Bankruptcy

When a Homeowner Files for Chapter 13 Bankruptcy, the court puts an automatic stay in place that prohibits the lender from continuing collection actions against you.

A homeowner who is behind on a mortgage payment can pay the arrearages over three to five years and keep the house (the same holds true for an overdue car payment).

What Are the Chapter 13 Debt Limits?
Effective April 1, 2016 and valid for all of 2017 and 2018, the debt limits for filing chapter 13 bankruptcy as prescribed by section 109(e) of the Bankruptcy Code are as follows:

Unsecured debt limit: $394,725

Secured debt limit: $1,184,200

These limits adjust every three years and the next chapter 13 debt limit adjustment will occur on April 1, 2019.

The secured debt limit of $1,184,200 includes the total of all debt that is secured by personal and real property owned by the debtor including mortgages secured by real estate (i.e., residential homestead mortgages as well as mortgages on rental or commercial properties, if any) and other collateralized debts such as vehicle loans, equipment loans, etc. The secured limit may also include tax liens.

The unsecured debt limit of $394,725 includes the total of all amounts owed on unsecured lines of credit, credit cards, medial debts and other consumer debts, some taxes owed and even disputed debts in most cases. This unsecured debt limit is calculated per person in the event that a married couple files a joint chapter 13 bankruptcy case.

Any individual that is either employed or self-employed in business is eligible for chapter 13 bankruptcy relief provided the individual’s unsecured debts are within these limits of $394,725 unsecured / $1,184,200 secured.


Steps in an Emergency Bankruptcy Filing
The average bankruptcy petition can easily consist of upwards of fifty pages once completed. But when you’re facing a foreclosure auction getting all of the paperwork done might not be feasible.

You have another option. You can file an Emergency Bankruptcy Filing with or without the assistance of an bankruptcy attorney.

For an emergency filing, you’ll want to follow these steps:

Step 1: Check with the court clerk or the court’s website to find out exactly what forms you must submit for an emergency filing.

Step 2: Fill in the Voluntary Petition for Individuals Filing for Bankruptcy.

Step 3: On the list of creditors, you’ll include the names and addresses of everyone you owe money to, as well as collection agencies, sheriffs, attorneys, and others who are seeking to collect debts from you. You’ll want to use the address on the most recent billing statement or court filing.

Step 4: Fill in Your Statement About Your Social Security Numbers form.

Step 5: Complete any other papers the court requires (for instance, in some jurisdictions you must file a cover sheet).

Step 6: Complete an online credit counseling course and include the credit counseling certificate in your filing.

Step 7: File the originals and the required number of copies with the court clerk, accompanied by your fee. Check the court’s website for acceptable payment methods to pay your fee.

Step 8: File the remaining required forms within 14 days to avoid dismissal of your case.

Call me at 323-327-6829 and I will do everything I can to help you Stop the Trustee Sale.

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Disclaimer: This site does not give legal advice nor make any claims to be a law firm. The information on this website is for general information purposes only. Should you need legal advice and/or services, you should seek an attorney/law firm of your choice, or you should contact your local and/or State Bar Association. Every borrower has the right to dispute and properly validate that correct and legal procedures were employed by the lender/trustee in the foreclosure action. No advance fees are collected prior to the postponement of the trustee sale. No warranties or guarantees are given. A trustee sale postponement will not permanently prevent foreclosure. All clients realize that their lender can foreclose while in this service.

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