The legal framework for foreclosures is often complicated and requires a great deal of specialized knowledge. This is because rules and regulations vary significantly from region to region. Hence, the need to work with a foreclosure lawyer Los Angeles to achieve a desirable outcome.
For instance, in California, the foreclosure framework is defined by civil code 2924. It allows for both judicial and non-judicial foreclosures. However, judicial foreclosures are rare in California since they allow for the right of redemption for delinquent borrowers. Non-judicial foreclosures, on the other hand, do not have this borrower-friendly option.
Another characteristic of California foreclosures is its “one-action” rule. This allows lenders to pursue only one specific avenue against defaulting borrowers. Overall, California is considered a consumer-friendly state due to an extensive set of rules and laws that govern the foreclosure process.
The Three Phases of Foreclosure
The Pre-foreclosure Phase
The pre-foreclosure phase is the first phase that you will encounter when dealing with foreclosure. It is the period after you fall behind in payments but before a foreclosure officially starts. In pre-foreclosure, the lender files a notice of default on the property because the borrower has exceeded the contractual terms for delinquent payments. A notice of default is used to notify the borrowing owner that the lender is pursuing legal actions toward foreclosure.
Pre-foreclosure can be an important phase. This is because it gives the lender a last-rights negotiation on delinquent debt for the borrower. The borrower often has a final opportunity to potentially reverse the default status by making up late payments, negotiating a modification, or possibly opting to sell the property before it reaches a final foreclosure eviction.
The Foreclosure Process
In the case of a mortgage, the home is used as collateral. The moment the borrowing owner signs the closing documents, the borrowing owner recognizes that the lender has the right to foreclose on the home if they default on the loan. This is also known as putting a lien on the title of the home. Once the mortgage is paid off, this lien on the title of the home is removed.
After the foreclosure, the mortgage lender will take control of the property and attempt to sell it to recoup the money lost from the mortgage default. The lender will have to repossess the home because a mortgage is a secured loan. That means the borrower guarantees repayment by providing collateral. If they can’t pay back the loan with money, they use the collateral instead.
The notice of sale will be given to the borrower in the foreclosing process, especially when they fail to meet with the outstanding payments within 90 days. The lender can send the notice of sale to the borrower through email. The content of the mail must contain the date, time, and address of the property.
The notice of sale will be posted on the property and must go around all local newspapers for three weeks. After then, the lender can proceed to sell the property and recoup their money.
The Eviction Process
When the entire foreclosure process has taken place, the current owner is expected to leave the property. Since the new owner cannot chase the current owner out of the property, they must serve him a 3-day quit notice.
If the former owner does not leave, a formal eviction process commences. Although cases like these often take several weeks to be sorted, the borrowing owner will have to leave the property in the end.
However, when the former owner has rented out the foreclosed property, the new owner must honor the lease agreement until it has expired. When the lease has expired, the new owner can terminate all existing binds to the former owner and create a new lease agreement with the tenants.
Going through a foreclosure process without a foreclosure Lawyer in Los Angeles is not an easy process. It does not always end well. From the pre-foreclosure process down to the main foreclosure and eviction process, everything has its way of putting pressure on you when you do not know what to do.
When you are dealing with a case like this, it is advisable that you work with the Law Offices of R. Grace Rodriguez, a heart-centered legal practice. We are dedicated to providing quality legal services at an affordable price. We understand your condition, and we are ready to work diligently with you to provide a comprehensive analysis of your specific situation. In the end, we will devise a workable strategy to resolve any problems you have.