Avoiding foreclosure is our top priority when you visit our offices in Los Angeles or Encino - and we never charge for the consultation.

There are numerous ways of avoiding foreclosure, or at least taking control of the situation to lessen the impact it has on your life. We can explain how to stop foreclosure sale in the manner that's best for your circumstances. These may include:

Filing Chapter 13

After detailed analysis of your situation, filing a chapter 13 to re-organize and consolidate your debts may be the best option. This is especially true when your Second Mortgage can be eliminated to avoid foreclosure. In California, filing for Chapter 13 debt consolidation is a powerful and legal way to stop foreclosure sale immediately.

Sometime our clients reach us too late in the foreclosure process and we file a Chapter 13 in order to stop house foreclosure and buy time to exercise any other viable options, including Loan Modification.

Timing is everything when you want to avoid foreclosure. The more time we have the better we can prepare and more options are available.

Short Sale

Following a decline in property value, a short sale can prevent foreclosure in California. A short sale occurs when the lender agrees to accept a sale price of the home at fair market value, rather than the full outstanding balance on the mortgage.

A short sale is a viable method of foreclosure prevention because the lender agrees to take a loss and write it off. This can stop mortgage foreclosure and avoid the negative impact on your credit. It also gives you an agreement to follow, with a predictable date to vacate the premises, rather than waiting for an eviction notice to be served by sheriff's deputies. With your credit left mostly intact, you will be in a much better position to obtain another residence, either by purchase or rental.

Deed in Lieu of Foreclosure

If it appears there is no way to stop house foreclosure in California, the Deed in Lieu of Foreclosure allows you to transfer title on the property over to the lender and be relieved of all or most of your personal indebtedness associated with the loan. This option for avoiding foreclosure offers several advantages to both parties:

• Avoids a formal foreclosure proceeding.
• Prevents public record filing, causing less harm to your credit record
• Eliminates foreclosure costs and legal fees for the lender

The process is complex, requiring projections of the future home value and the fair market value. It also means we must convince the lender to stop foreclosure sale because although you can't afford to make mortgage payments now, you didn't know this was going to happen when you took out the loan. Otherwise they may allege mortgage fraud, and cause even bigger problems for you.

Beware Forbearance Agreements!

We mention this "option" for avoiding foreclosure, because the lender will often present it as an alternative to stop foreclosure sale.

In fact if you have real financial problems, a forbearance agreement is little more than a way to postpone foreclosure. It is often promoted as a chance to catch up on your payments -- but with stricter terms.

The lender often requires a huge lump sum (which you may not have) before they will agree to stop mortgage foreclosure. Then if you miss any subsequent payments, the terms of the agreement usually permit more immediate action, making it harder for you to stop foreclosure. In California, this is just a way to squeeze more money out of a homeowner, under the guise of a workout plan. Very rarely is it a viable option for the borrower.

As with all legal options, you should seek qualified legal advice on foreclosure prevention. When excessive debt is causing problems in your life, Contact our bankruptcy attorney for a free consultation to explore options that can get you back on track.