Facing Foreclosure in California?

The number of Foreclosures in California and across the Nation are on the rise. If you are facing foreclosure in California we can help. The foreclosure relief department at Doan Law Firm, LLP is comprised of a dedicated team of highly trained professionals, attorneys, underwriters, and brokers in the mortgage and loan industry. Our team will work diligently with your lender and/or invoke Federal Court Remedies to facilitate a solution that fits your budget and goals. The following are the most common ways we assist homeowners facing foreclosure.

Loan Modification Program:

The loan modification program allows homeowners who can make payments keep their house. Often times an upward payment adjustment or "reset" will cause homeowner to fall behind on their monthly payments. By actively counseling our clients and negotiating with their lender we are capable of modifying the original loan to give our clients a fresh new start in managing their homes. Such modifications can range from a simple interest rate reduction resulting in a lower monthly payment to what is known as a "recapitalization agreement." A Recapitalization agreement takes all the arrears, interest, fees, and missed payments and adds it to the principal of the mortgage loan. Though it results in a higher principle balance, it terminates the foreclosure proceeding and allows the homeowner to resume making their regular monthly payments. Finally, we may be able to extend the life of your loan such that your payments are more easily manageable.

Chapter 13 Bankruptcy:

The Chapter 13 program, often called “reorganization,” allows you to consolidate all your debts into one low monthly payment.  The payment amount is tailored to your budget.  Chapter 13 Bankruptcy consolidates all missed mortgage payments or “arrears” and then spreads the repayment out over 3-5 years.  The net result is that your mortgage is legally reinstated by Federal Court Order and you continue to make your normal mortgage payments.  The lender is also under strict scrutiny to account to the Federal Court any fees they attempt to assert over your normal mortgage payments.   For example, if you are $9,000 in arrears on your mortgage and your monthly mortgage payment is currently $3,000, your Chapter 13 payment would be approximately $150 per month.  (60 months x $150 =$9,000) The new total monthly house payment would be $3,150.  The Chapter 13 program results in a more realistic repayment plan than the short term plans currently offered by most lender outside of Bankruptcy, and you maintain all your rights under TILA, RESPA, HOEPA, FDCPA, FCRA, etc. 

Short Sale:

With our short sale program we are able to market and sell your property for at or below market value even though you may owe substantially more than that on the mortgage(s).   A short sale will not only stop the foreclosure but will prevent the adverse credit implications associated with a foreclosure.  If the short sale is done in conjunction with a bankruptcy filing the results are even more beneficial to the homeowner.   Not only will the tax consequences be completely eliminated, but any shortage or “deficiency” will be discharged in the bankruptcy.  The sale is generally easier to do since the lender knows there is no longer any personal recourse against the homeowner.  Finally, with the filing of the bankruptcy, you are generally able to extend the length of time remaining in the property.  Its not uncommon to remain a year of longer in your property without paying using a short sale combined with a bankruptcy.

Equity Recoupment:

The Equity Recoupment program allows our clients to recoup what they may have lost as a result of predatory lending and the current mortgage crisis.  Strategically, by using a combination of the above programs and state consumer protection laws, Doan Law Firm. LLP developed and pioneered a program that allows homeowners to legally remain in their home for 8-12 months or even years without making a single payment!  Though it may sound to good to be true, the program is rooted in both California and Federal consumer protection statutes and the civil code, and the illegal shortcuts lenders have been taking over the past decade.   Many homeowners are not aware of the vast state and federal laws that have been created over the last 20 years to address the very issues we are facing today with widespread foreclosures and predatory lending.   For example if your monthly payment is $3,000 per month, in 8 months you will recoup $24,000, in 16 months that is nearly $50,000.  Your recoupment will continue to grow the longer we are able to keep you in your home.

Deed In Lieu of Foreclosure:

If you are behind on your monthly mortgager payments and are unable to sell your home at the current market value, a deed in lieu of foreclosure may be an option to prevent a foreclosure from tarnishing your credit.  The process involves giving the property directly back to the lender, or "deeding it back in lieu of foreclosure."  The lender benefits as they are able to mitigate the additional losses they would incur from having to proceed with a lengthy foreclosure.  Often times the lender will offer this option at the onset of a foreclosure proceeding, however in our experiences lenders will seldom follow through and effectuate the transfer without Attorney intervention.  By stepping in and advocating for our clients we are able to  1) Get the homeowner released from most or all of the personal indebtedness associated with the defaulted loan 2) Prevent the homeowner from experiencing the public notoriety of a foreclosure and subsequent credit implications, and 3) Put money in our client’s pocket via "Cash for Keys".  Though it may appear to be a viable means of walking from your home unscathed, it is a complicated process requiring competent legal and tax advice.

Resource Links on Foreclosure:

IRS questions and Answers on Home Foreclosures and Debt Cancellation:

Sample 1099C Cancellation of Debt for issued by lenders to borrowers:  (Download file 1099f)

Advanced Reading:

How did we get to this Subprime Mortgage mess (Download Subprime files)

Understanding Securitization (Download Securitization files)

Consumer Home Mortgage Information, provide by California Department of Real Estate:

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