When facing foreclosure with two mortgages, the second lien holder will not likely foreclose on you. Instead they’ll wait to pursue you in civil court under a breach of contract claim, where they can seize wages and assets or even force you into bankruptcy. A skilled Los Angeles foreclosure defense attorney can negotiate with second lien holders.
Trusted Foreclosure Lawyers in Los Angeles
Oaktree Law attorneys can develop a sophisticated strategy to ease your burden and assist with second mortgage foreclosure in Los Angeles. A negotiation may pave the way for your eventual loan modification or short sale.
Contact us or call 800-535-1627 if you have questions about your obligations to a second lien holder.
Settlements for Pennies on the Dollar
Due to the California anti-deficiency law, second lien holders are at risk of losing their entire investment during a second mortgage foreclosure. Los Angeles residents holding this kind of lien need to be aware of their options. In certain cases, they are more than willing to accept a short payoff, a one-time payment for less than the full amount.
In the case of a short sale, all liens need to be addressed. Your second lender may release the lien for just pennies on the dollar. The same can be considered before a loan modification. Satisfying the second lender can improve negotiations with your first lien holder.
In some cases, filing for Chapter 13 bankruptcy may allow you to apply for lien stripping. Orange County residents must obtain this through a court. When a borrower purchased a property at an inflated price and now owes much more than it is worth, it is possible that if the home were sold it would not fully cover the first mortgage, let alone the second. In this situation, the debt is effectively unsecured, and a court may have the power to officially render it as such. This is referred to as lien stripping. Orange County residents should consider it alongside many other methods to help manage debt.
Timing is important. By first negotiating a short payoff, you will have a clearer picture of your financial health. Your debt to income ratio may improve. This will likely affect your decision to pursue a short sale or a loan modification.
Skilled Los Angeles Foreclosure Attorneys
Negotiate from a position of strength. We can help you satisfy your obligations to a second lien holder. Contact us or call 800-535-1627.