Pleasanton, California, Loan Modification Lawyer
Advising Clients About Loan Modifications and Strategic Foreclosures
If you received a notice of default from your mortgage lender, or if you are anticipating the lender taking action for missed loan payments, you must be proactive if you want to keep your home. Many homeowners come to the Law Offices of Connie Yi, P.C., when they are in jeopardy of losing their home, and they are incapable of selling it due to an upside-down mortgage. Contact me for a consultation to discuss your legal options regarding loan modifications and strategic foreclosure.
I am San Francisco and Pleasanton, California, loan modification attorney Connie Yi. My law firm offers a complete range of legal services for individuals and families facing the loss of their homes due to financial difficulty. As an attorney with licenses as a certified public accountant (CPA) and a real estate broker, I am proud to provide legal services beyond the standard that most firms offer.
Facing home foreclosure? Timing is critical to keep your home.
In California, new laws have been enacted to regulate the mortgage industry. One of those laws, though temporary, requires lenders to make good faith efforts to modify loans prior to filing a notice of default. Unfortunately, the good faith efforts of many loan companies do not extend far enough to make an actual difference in the lives of homeowners in financial crisis.
If you have received a notice of default, you have 90 days from the default before you must be out of the house. You can attempt to contact your lender or to work through a HUD counselor to discuss loan modifications in order to reduce interest rates or reduce principle. If effective, a loan modification may enable you to save your home and stop foreclosure. However, mortgage companies are extremely limited in their ability to negotiate and, many times, are incapable of providing the relief homeowners need to save their home. In other situations, homeowners do not qualify for such reductions.
Have you attempted loan modification to no avail? You may have other options.
If you have been unsuccessful in obtaining a loan modification, I can help you understand the strategies available to protect your financial interests:
- Short sales : A short sale involves selling your home for an amount that is less than the amount owed to the lender. In order for the short sale to be effective, the lender must be provided with a short sale package and approve the short sale. Under a new law, effective January 1, 2011, first mortgage holders who agree to a short sale may not seek recovery of the deficient balance. Additionally, a law passed July 11, 2011, extends this protection to holders of second mortgages and third mortgages. Therefore, if your lenders approve the short sale, they cannot later sue you for the deficient balance that was forgiven in the short sale. However, not all borrowers are extended this protection; therefore, it is important to discuss your short sale option with an experienced real estate and tax lawyer. As a licensed real estate broker, CPA and lawyer, I know how to negotiate effectively to get short sales approved by lenders.
- Strategic foreclosures: When a homeowner or borrower is incapable of achieving relief through loan negotiation or short sale, or for those not wanting to keep their property, the best option may be to pursue a strategic foreclosure (let the home foreclose). With my comprehensive real estate and tax law experience, as well as my experience as a real estate broker and CPA, I know the ramifications of walking away from a home (and walking away from a mortgage). I can advise you of your rights and how to ensure expedited credit repair following your mortgage foreclosure.
My law firm can also help you explore other options such as filing for bankruptcy or returning the deed to the lender.
Important things to know when walking away from debt
Your credit: Walking away from your home will appear on your credit report and affect your ability to qualify for a loan at a later date. Therefore, it is important to make sure the foreclosure is listed on your credit report soon after it occurs so that you can qualify for a loan sooner. I can assist in making sure the process is completed accurately.
Your loan type: The type of loan you are walking away from will significantly affect the risks of foreclosure. If your loan is a purchase money loan, the lender cannot seek recovery of deficient loan balances following foreclosure. However, other types of loans, such as if you refinanced your home, do not offer this protection. I can advise you of whether foreclosure would be an appropriate option for you.
Your tax obligations: When walking away from debt through a short sale or strategic foreclosure, it is important to understand and resolve risk of tax liability that you may be exposed to in the next year. If you are issued a 1099 tax form, it is important not to ignore this tax liability concern. I can help you handle this complex income tax matter effectively.
San Francisco and San Jose foreclosure and loan workout attorney
I provide advice to minimize your tax liabilities and credit damage, and to fully preserve your interests when facing foreclosure. For one-stop real estate and tax law services in San Francisco, contact me to schedule a confidential consultation. For your convenience, I maintain four accessible locations in the Bay Area with free parking and accept all major credit cards. In addition, I speak fluent Chinese. Evening and weekend appointments are available.
