Legal Question in Real Estate Law in California

Re: Letting a house go to foreclosure

There is no form available for this. I am a lawyer and a real estate broker -- i.e., a real estate attorney and I do specialize in loan modifications and actually initiating suit against lenders for predatory loans, truth in lending, and other issues. I negotiate loan modifications and can likely assist you for a reasonable fee. Sometimes, if the violations are bad enough, we can completely negate the loan. Contact me to schedule an appointment and thank you for your consideration.

Christopher Brainard, Esq.

310.266.4115

Re: Letting a house go to foreclosure

You may have any number of options you may not have looked at. First, have you considered a short-sale of the property? Banks in certain circumstances may be willing to agree to take less than they are owed to let you sell the house. You would not receive any cash when it sells, but you would get out (if properly negotiated) of the house and debt clean. Alternatively, you can attempt to keep the house by negotiating a loan modification. You will generally want help with this, but I caution you against using any of the firms you see or hear advertised on television and radio. Its best to work with an attorney skilled in this area. Take a look at my website for an article about loan modifications and foreclosure consultants. Finally, if there is no way out, you can walk from the house. First, stop making your payments on all but homeowners dues (if you have them), utilities and homeowners insurance. If you don't have insurance, get it now. Depending upon the loan or loans on your property, you may be able to walk away without any further liability, or you may have the potential for a deficiency (the bank coming after you post-foreclosure for money it didn't receive in the foreclosure and subsequent sale of the property). I have a good article discussing the California Foreclosure Prevention Act on my website that discusses timing for foreclosures. Feel free to call or email me to discuss whether you have exposure for a deficiency, in which case you may need to file bankruptcy in the end to discharge that obligation if you cannot pay it. Good luck.

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