Hi, this is Derik Lewis with Lawyers Realty Group here in Southern California. At Lawyers Realty Group, we have attorney and broker experience to help you with all of your short sale transaction needs. If you’ve watched the video on the foreclosure timeline and processing, you know that the lender is required to reach out to you, attempt to make contact and determine if there is an alternative to foreclosure, such as a short sale.
After you’ve stopped paying, but before the notice of default, pay attention to what the lender is saying and doing. If they are reaching out to you but they’re just talking about the default and not giving you the appropriate information and trying to make contact, essentially they have violated the law with respect to filing the notice of default before completing those tasks.
If you can prove that they didn’t follow the law, you have a private right of action against that lender. We’ve handled a couple of these and they’ve gone fairly well. Your only recourse is that the lender has to postpone the sale and foreclosure process and they have to sit down with you and talk to you about the alternatives to foreclosure.
This doesn’t necessarily mean that they are going to give you a loan modification or find you some other alternative; it just means that they are going to follow the law and sit down with you. What the county is doing is giving you a 90 day postponement of the sale. If a loan modification is an option, they should discuss it with you. If a loan modification is not an option, it’s my belief that the next best thing for them to talk to you about would be a short sale. They should give you a certain amount of time and incentives to do a short sale because it saves them money in the long run.
If you feel you have a claim to file or have a question, please send me an email or submit a question via our website. Lawyers Realty Group can help you with all of your real estate and short sale needs, so please contact us today.