The prospect of losing one’s home is enough to fill any person’s mind with dread. The equity in your family home may be one of your most valuable assets. Federal law creates the procedures by which a lender can foreclose on a home. Lenders and homeowner’s associations can begin foreclosure proceedings by recording a notice of default after three missed payments. When a bank or other lender issues a notice of foreclosure, it is essential to act quickly to protect your future.
A Rancho Cucamonga foreclosure lawyer could help you to stay in your home by filing for bankruptcy. Whether you wish to seek out a refinancing option or declare your home as a protected asset during bankruptcy, an experienced attorney could help you pursue the option that is best for you.
Working on Behalf of Homeowners to Renegotiate Loans
Many banks and lenders have no desire to take possession of the property, even if they send notices of their intention to foreclose. Often, the notice presents a great opportunity to negotiate new loan terms.
Renegotiating the terms of a loan can be beneficial to all parties. Refinancing the loan can result in lower payments that stretch over an increased period of time. If current loan rates are low, the monthly payments can be significantly more affordable. A Rancho Cucamonga lawyer could represent a debtor’s interests during these negotiations to prevent foreclosure.
Filing Bankruptcy to Avoid Foreclosure
Anyone facing a potential foreclosure could file for bankruptcy to remain in their home. Chapter 13 allows for the naming of a family home as an exempt asset. This means the court-appointed trustee cannot seize and sell this to raise funds to pay back creditors.
Additionally, merely filing a request for bankruptcy protection in a local court will result in the creation of an automatic stay. This stay puts an immediate hold on any current foreclosure case and prohibits a lender from filing a new request in the future. A foreclosure attorney could provide more information about bankruptcy as a means to retain ownership of a home.
Contact a Rancho Cucamonga Foreclosure Attorney Right Away
If you have received notice that a bank or lender intends to begin foreclosure proceedings, it is essential that you act quickly. This letter is the first step in the legal process that could cause you to lose your home along with all accumulated equity.
A Rancho Cucamonga foreclosure lawyer could help you avoid this outcome. Our firm could help you refinance your loan through negotiations with a lender or protect your home by declaring bankruptcy. Contact us today to schedule a consultation and get started on your case.