Best Foreclosure Lawyers in West Covina

About Foreclosure Law in West Covina, United States

Foreclosure is a legal process that occurs when a homeowner is unable to keep up with mortgage payments, and the lender seeks to recover the owed amount by taking ownership of and selling the property. In West Covina, California, foreclosures are governed by both state and federal laws, with most falling under the category of non-judicial foreclosure. This means that, in many cases, the lender does not have to go to court to foreclose on a home, making the process relatively fast. Understanding your rights and responsibilities under these laws is crucial if you are facing foreclosure or at risk.

Why You May Need a Lawyer

There are several situations where seeking legal advice or representation in foreclosure matters is beneficial or necessary, including:

• If you have received a Notice of Default or Notice of Trustee Sale and are unsure of what to do next.
• If you believe there has been a mistake in your mortgage servicing, such as incorrect accounting of your payments.
• If you want to negotiate a loan modification, short sale, or other alternative to foreclosure with your lender.
• If you suspect predatory lending, fraud, or violations of state or federal consumer protection laws.
• If you wish to file for bankruptcy as a strategy to avoid or delay foreclosure.
• If you need assistance understanding your rights and exploring all available options for keeping your home.

A lawyer experienced in foreclosure law can help you protect your interests, communicate with lenders, and present your case in the best possible light.

Local Laws Overview

Foreclosure in West Covina is primarily governed by California state law. The following key aspects are particularly relevant:

• Non-Judicial Foreclosure: Most foreclosures in California are handled outside of court according to the procedures set out in the Deed of Trust.
• Notice of Default: The process begins with the lender recording a Notice of Default, giving the homeowner at least 90 days to cure the default (bring payments current).
• Notice of Trustee Sale: If the default isn’t cured, the lender may issue a Notice of Trustee Sale at least 20 days before the auction date.
• Right to Reinstate: Borrowers have the right to reinstate the loan (pay back money owed and fees) up to five business days before the sale.
• Redemption Period: In most cases, homeowners in California do not have a right of redemption after the sale, meaning they cannot reclaim the property by paying off the debt post-auction.
• Tenant Rights: Renters in foreclosed properties are protected under both California law and, in some cases, federal law, requiring advance notice of eviction.
• Anti-Deficiency Laws: For non-judicial foreclosures on residential properties, lenders generally cannot seek a “deficiency judgment” for remaining debt after the sale.

Frequently Asked Questions

What is the difference between judicial and non-judicial foreclosure?

In California, including West Covina, most foreclosures are non-judicial, meaning the lender can foreclose without going through the court system. Judicial foreclosures are rare and typically used if specific circumstances dictate.

How long does the foreclosure process take in West Covina?

The process can take about 120 days or longer, starting with the Notice of Default and culminating in a trustee sale. Timelines can vary based on specific circumstances, lender actions, and any borrower responses.

Can I stop a foreclosure once it has started?

Yes, you may be able to stop foreclosure by reinstating the loan, applying for a loan modification, negotiating a short sale or deed in lieu of foreclosure, or filing for bankruptcy. Legal advice can help determine the best strategy.

Will I owe money after my home is foreclosed?

Generally, for non-judicial foreclosures on residential properties, California law prevents lenders from pursuing borrowers for deficiency judgments. There may be exceptions, so consult with a lawyer about your specific situation.

What are my rights as a tenant if the property I am renting is foreclosed?

Tenants have rights to receive at least 90 days’ notice before being required to move, and leases may remain valid until their expiration under certain circumstances. State and sometimes federal protections may apply.

What happens to my credit if I go through foreclosure?

A foreclosure will significantly impact your credit score, and the information may remain on your credit report for up to seven years.

Can I negotiate directly with my lender to avoid foreclosure?

Yes, homeowners are encouraged to reach out to their lenders as early as possible to explore options for loan modification, repayment plans, or other foreclosure alternatives.

I think there was a mistake in my foreclosure process. What should I do?

Contact a foreclosure attorney immediately. Errors in the process, such as improper notice or accounting mistakes, can sometimes invalidate the foreclosure and provide remedies.

What should I do after receiving a Notice of Default?

Do not ignore the notice. Review it carefully, gather your documents, and seek legal advice right away to understand your options and respond appropriately within required deadlines.

Is bankruptcy a good option to stop foreclosure?

Bankruptcy can temporarily halt foreclosure through an automatic stay and may provide a way to keep your home, but it has serious financial implications. Speak with both a foreclosure attorney and a bankruptcy attorney to weigh your options.

Additional Resources

If you need information or assistance with foreclosure in West Covina, consider these helpful resources:

• California Department of Consumer Affairs: Information on foreclosure prevention and consumer rights.
• Housing Rights Center: Offers free counseling and resources for homeowners and tenants, including foreclosure-related matters.
• Legal Aid Societies: Local legal aid organizations provide low-cost or free legal advice for foreclosure and housing issues.
• U.S. Department of Housing and Urban Development (HUD): Approved counselors for foreclosure assistance.
• City of West Covina Housing Division: Local resources for homeowners in distress.

Next Steps

If you are facing foreclosure or have concerns about your mortgage in West Covina:

• Read all correspondence from your lender and respond within deadlines.
• Gather all your mortgage documents, payment records, and notices.
• Reach out to your lender right away to discuss your situation and possible alternatives.
• Consult with an experienced foreclosure or real estate attorney in West Covina to review your options, rights, and responsibilities.
• Seek assistance from reputable nonprofit organizations or legal aid services if you cannot afford private counsel.
• Take action promptly-delays can limit your available options.

Remember, while foreclosure can be overwhelming, understanding the process and getting legal support can help you make informed decisions and protect your interests.