Best Foreclosure Lawyers in Calabasas

About Foreclosure Law in Calabasas, United States

Foreclosure is the legal process by which a lender can repossess a property when the homeowner fails to make mortgage payments. In Calabasas, as in the rest of California, foreclosure is primarily handled through nonjudicial means, meaning it does not usually require court supervision. However, judicial foreclosure is an option in some cases. The timeline and procedures can be complex, making it essential for homeowners to understand their rights and obligations.

Why You May Need a Lawyer

There are several scenarios where legal assistance in the field of foreclosure might be necessary:

• Loan Modification: To negotiate new loan terms with your lender.
• Foreclosure Defense: To challenge the foreclosure process or its validity.
• Bankruptcy: To explore how filing for bankruptcy might impact foreclosure.
• Short Sale: To manage the sale of your property for less than what is owed on the mortgage.
• Eviction: To navigate potential eviction after foreclosure.
• Litigation: To address any legal disputes arising from foreclosure actions.

Local Laws Overview

The foreclosure process in Calabasas adheres to California state laws. Here are some key aspects:

• Notice of Default: This notice initiates the foreclosure process, giving borrowers 90 days to rectify the missed payments.
• Notice of Trustee's Sale: If the default isn't resolved, a Notice of Trustee’s Sale is issued, setting the auction date at least 20 days later.
• Right to Reinstate: Borrowers have the right to bring the loan current until five days before the trustee sale.
• Redemption Period: Unlike some states, California does not offer a redemption period after the foreclosure sale for nonjudicial foreclosures.
• One-Action Rule: Lenders are required to exhaust the method to collect a loan, typically meaning they must pursue the collateral first before other assets.

Frequently Asked Questions

What is the first step in the foreclosure process in Calabasas?

The lender files a Notice of Default, which gives you 90 days to catch up on missed payments.

Can I stop a foreclosure in Calabasas?

Yes, you can stop a foreclosure by bringing your mortgage current during the reinstatement period, pursuing a loan modification, or filing for bankruptcy.

What is a Notice of Trustee's Sale?

This notice announces the date, time, and location of the foreclosure auction and is issued if the default isn’t resolved within 90 days of the Notice of Default.

What are my rights during the foreclosure process?

You have the right to reinstate your loan within five days before the scheduled auction and to receive all notices regarding the foreclosure process.

Does California have a redemption period after foreclosure?

California does not offer a redemption period after the foreclosure sale in nonjudicial foreclosures.

What happens if my home is sold at auction?

The new owner must serve you with a notice to quit, and you typically have a few weeks to vacate the property.

Can I sell my home before foreclosure?

Yes, you can sell your home before the foreclosure sale, potentially through a short sale if your home’s value is less than the mortgage balance.

Will foreclosure affect my credit score?

Yes, foreclosure significantly affects your credit score, often lowering it by 200 to 300 points.

Can bankruptcy prevent foreclosure?

Filing for bankruptcy can temporarily halt foreclosure proceedings through an automatic stay, but it may not be a permanent solution.

What is the One-Action Rule?

California’s One-Action Rule requires lenders to exhaust their method of collecting the loan, meaning they usually must foreclose on the collateral before pursuing other assets.

Additional Resources

For additional information and assistance, consider the following resources:

• California Department of Real Estate
• U.S. Department of Housing and Urban Development (HUD)
• The State Bar of California
• Legal Aid Foundation of Los Angeles
• NeighborWorks America

Next Steps

If you need legal assistance in navigating foreclosure, the following steps can be particularly helpful:

• Consult a Lawyer: Schedule a consultation with a legal professional experienced in foreclosure law.
• Gather Documentation: Collect all relevant documents, including loan agreements, notices of default, and any communication with your lender.
• Explore Options: Understand all available options, such as loan modification, short sale, and bankruptcy.
• Stay Informed: Keep updated on your rights and responsibilities through reliable sources and legal advice.

Taking proactive steps and seeking expert legal advice can help you navigate the complexities of foreclosure and protect your interests effectively.