How to fight a foreclosure

The current real estate market is inundated with foreclosed properties.  With so many “help programs” advertised it’s no wonder borrowers are left in unchartered waters.  Where do you begin if you find yourself in a foreclosure situation?

Who – any borrower who is in default, who is trying to work out a solution through a loan modification, who is in a trial payment plan, who is ready to fight to keep his/her home, and who has had his/her home sold at a trustee sale.

What – can you do?  You can file a law suit for breach of contract, promissory estoppel and wrongful foreclosure.

What – to expect.  Be prepared for the cost of a law suit which could range from $20,000 to $50,000 over a 3 to 5 year period.  Be prepared to pay a retainer to start the law suit of $3,500 to $5,000.  Be prepared to provide every piece of documentation regarding the loan, trial payment plan, loan modification, notice of default, notice of trustee sale, trustee deed and any eviction process.

When -- you should act.  You should act as soon as you are in default, when you have received a Notice of Default, when the trustee sale has been scheduled, right after a trustee sale has taken place, and when you have been served an unlawful detainer action.

Where – the law suit will be filed in the county where the property is located.  It is possible that the lender will try to remove the case to federal court.  But there are steps to get the case remanded back to State Court if necessary.

Based on my recent experiences in front of judges in both Placer and Sacramento counties, I believe that the legal viewpoint of the bench is to look at the whole picture and not just the fact that the borrower is in default.  See my article “David v. Goliath” for additional information on the legal process.