Mortgage foreclosure defense may be available

There are homeowners facing the possibility of losing their home because they are behind on their house payments and are on the verge of foreclosure. Attorney Morton J. Grabel in his abbreviated primer says there may be options in defending against a foreclosure by using the very same law, lenders use, but to the homeowner’s advantage.

Grabel says, “there are more solutions for homeowners today than their have ever been.”

He gives possible solutions: Federal Laws that protect the homeowner including HAMP, HARP and HARDIST HIT FUND; State Laws including the California Homeowner Bill of Rights (HOBR) that helps protect homeowners from foreclosure and lender abuses if the home is owner-occupied, residential and has no more than four units.

He suggests that homeowners learn lawful options including injunctive relief (to halt the foreclosure), and (actual economic damages) if the foreclosure has already occurred and if there are lender violations such as breach of contract, fraud, negligence, dual tracking (while the loan modification is being considered a non-judicial foreclosure cannot occur) and statutory violations.

Litigation: may encourage a loan modification with a lower interest rate and/or principal reduction and/or extend the length of the term of the loan

Bankruptcy: may be the right option (Chapter 7 or Chapter 13) if it is needed to eliminate or reorganize debt

A refinance: if the mortgage is not underwater, if one spouse or both have sufficient credit and income to qualify for a refinance if there is equity in the property

A short sale: may be the right solution if there is not equity

A forbearance plan: an agreement between the lender and the borrower wherein a certain portion of the mortgage is deferred for a period of time

An exchange: of a deed in lieu of foreclosure

Please note the information identified above-and herein does not create an attorney-client relationship. Moreover, the information provided above and herein is general information and not legal advice nor shall it be relied upon as a particular answer to your particular legal needs. Grabel who is originally from Philadelphia, attended an ABA credentialed law school, is a lawyer in California good standing, has an MBA, an active nursing home administrator’s license and is a licensed real estate broker in California. For questions or to make an appointment call the Law Offices of Morton J. Grabel in Temecula at (951) 695-7700.

Disclosure: this office does not offer a loan modification service; although a loan modification may result from litigation.

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