You have certain rights against your lender/servicer upon receiving a foreclosure notice in California.
Since the crash in the housing market in 2008, a growing number of homeowners have explored their legal options in response to the foreclosure process. The legal strategy employed by homeowners in response to the foreclosure process is known as "foreclosure defense." The foreclosure defense strategy explores whether a lender/servicer has a right to foreclose on your home. Call the Property Lawyer now for a free evaluation of your case.
California Homeowner Bill of Rights
Under California Civil Code Section 2923.6 a lender/servicer may not record a notice of default or conduct a trustee’s sale without first providing a written determination on your pending loss mitigation application.
One way of avoiding foreclosure is by modifying the mortgage. In a loan modification, the lender reviews homeowner’s finances to determine whether they qualify for renegotiation of their loan terms. Sometimes this renegotiation or restructuring of the loan makes the monthly mortgage payments more affordable. However, in some instances where the homeowner has a significant amount owed in past due balance, it may temporarily increase the borrower’s monthly mortgage payment in order to give them an opportunity to get back on track without having to come in with a lump sum to reinstate their loan.