Legal Question in Real Estate Law in California
I am stuck. I own a property which is upside down. I was kicked out of it because after buying it with a pre approval from the HOA that I could have a dog over 25pounds, the HOA changed their mind and penalized me as well as threatened to put a lien on my property. My dog and I moved out then (2006) and now five years later after paying mortgages that have never been covered by the rent, I am upside down and have stopped making my mortgage payments. I'm also out of a job. I have been advised my a real estate firm to go ahead a shortsell with them and on the other hand by another real estate agent to keep it and ride the market. I need some good neutral advice that will give me the realistic picture. What is the best way for me to go and are there any attorneys out there that are local to me?
1 Answer from Attorneys
First, your Zip code is in an area swarming with lawyers. By contrast, I believe I'm the only attorney in my entire Zip.
My advice is kind of incomplete because of limited facts (values, dates, job prospects, etc.) and I do agree you should try to find a lawyer you can pay what you can afford for the advice he or she is able to give.
My advice is first, to consider the alternatives, their relative realism, and their up- and down-sides. The alternatives would be (1) short sale, (2) deed in lieu of foreclosure, (3) foreclosure, and (4) bankruptcy. There is also (5) loan modification and (6) paying off the arrearages and reinstating the loan, but these may be farfetched thoughts in your circumstances.
None of these alternatives is horrible. Lots of good people get foreclosed, and lots of them have filed for BK under current conditions. None of the alternatives casts and permanent doubt upon you, or will get you thrown in prison.
Lenders are now supposed to offer borrowers some limited counseling before recording the notice of default, pre-foreclosure. Have you been contacted yet? This is an opportunity to discuss deed in lieu, short sale, restructuring, etc. without paying anybody. Take advantage of it, even though it's your bank you're talking to. It's free.
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