The final step for people struggling to make mortgage payments can be a foreclosure on the property by the lender. This is the process whereby the lender takes possession of the land and attempts to make good on their losses by selling it to another buyer. However, there are strict steps that a lender must take before seizing your land. This applies regardless of whether the sale will be taking place in court or is possible under a power-of-sale clause.
A Marin County foreclosure lawyer at our firm recognizes that property owners have rights under the law. In fact, mortgage companies and other lenders may not follow the law when attempting to seize land. This may offer you the opportunity to fight back against the proposed foreclosure. Talking with a qualified attorney now allows them to evaluate your situation and formulate a defense against the loss of your land.
What Does it Mean for a Lender to Foreclose on Property?
Taking out a mortgage on a piece of land obligates the borrower to make all payments on time according to their payment schedule. Making these payments secures the homeowner’s or business owner’s right to remain on the property. Failing to make a payment, on the other hand, can justify a lender to initiate foreclosure proceedings.
Lenders pursue foreclosure with the intent of seizing the property. It does not matter if the borrower is only a single payment behind or if they have reliably made payments in the past. The goal is to take possession of the land and resell it to cover the lender’s losses. A knowledgeable Marin County foreclosure attorney could provide more information about the concept of foreclosures and why lenders may take such drastic action.
Two Versions of Foreclosure Proceedings
There are two types of foreclosures in Marin County and throughout the rest of the state. Each version has its own processes but also significant protections for borrowers.
The most common is a non-judicial foreclosure. This is possible when a mortgage loan has a power-of-sale clause that allows for a direct sale in the event of a default. If a borrower misses a payment, the lender can issue a notice of default that gives the borrower 90 days to make up all overdue payments. It is only when a borrower does not make these payments that the property can be sold on the court house steps.
Marin County also holds judicial foreclosures. These move through the courts, but similar rules concerning 90-day notice under California Civil Code § 2924 still apply. The main difference is that the lender must file a formal lawsuit in court and obtain a legal judgment to take the land and the homeowner would be responsible for all attorney fees and costs.
Defending Property Owners Against Foreclosure
Whether a foreclosure is taking place in the courts or not, it is vital that landowners recognize their rights under the law. This includes receiving proper notice of a failed payment, time limits on when a lender may act, and the right to cure a default.
If it appears that a lender has failed in their obligations under the law or the foreclosure is moving forward based on erroneous information, an experienced foreclosure lawyer in Marin County could help. Our team of seasoned attorneys have successfully defended the rights of landowners to remain in their homes or to continue doing business.
Contact a Marin County Foreclosure Attorney Immediately
Foreclosure is a devastating process that can have a significant financial and emotional impact on you and your family. The simple fact is that a single missed mortgage payment may motivate a lender to begin proceedings, and a non-judicial foreclosure can finalize in a matter of months. It is crucial that you act swiftly to protect yourself.
Speaking with a Marin County foreclosure lawyer at Estavillo Law Group may be your best option. Our dedicated legal professionals will explain the state’s foreclosure laws, evaluate the actions of your lender, and fight to protect your rights as a landowner. Reach out now to learn more.