Los Gatos Foreclosure Lawyers

Find the right Foreclosure attorney in Los Gatos, CA

Foreclosure Law in California

In Los Gatos, California, foreclosure is a legal process through which an entity which has issued a mortgage takes possession and/or ownership of the property that secured the mortgage, because the person who took out the mortgage has consistently failed to make payments on it. The property in question is usually a house.

When consumers have to deal with foreclosure, it almost always involves a home. The bank will usually take possession of the house, and then sell it at auction, to try to cover the balance of the mortgage. Banks normally want sell the property quickly, for as much money as possible.

In California, and every other state, foreclosed homeowners can go through a "foreclosure by judicial sale." In this type of foreclosure sale, a court supervises the sale, ensuring that the bank makes every reasonable effort to get the highest price possible for the house. The purpose of this is to maximize the chances that the bank gets, at the very least, the remaining balance of the mortgage. Although this may seem counter-intuitive, it is intended to protect the borrower: it helps prevent them from still owing money after the house is sold at auction.

In some states, original mortgages are considered "non-recourse" loans. This means that once the house or other property that secured the mortgage is sold, and if it sells for less than the balance of the mortgage, the lender has to absorb the loss, and cannot sue the borrower for the remainder. This normally does not apply to second mortgages or refinanced loans.

How to Possibly Avoid Foreclosure in Los Gatos, California

It is absolutely necessary that you maintain a line of communication with your lender. Your can't expect your lender to accommodate your changed financial situation if they don't know about it. Ignoring the issue and hoping it will go away is the worst possible solution.

Throughout all this, you should remember one thing: the bank doesn't really want your house. After all, banks aren't real estate speculators, they're primarily money lenders. They stand to make a great deal of money if you are able to make your mortgage payments until it's paid off. They're likely to make much less if they're forced to sell your house.

If your financial situation suddenly changes, your lender may be willing to change the terms of your loan, at least temporarily, allowing for lower monthly payments. If this means that they will be able to get some money from you, with default as the alternative, it can become an attractive option for everyone involved.

As a last resort, some borrowers consider a "short sale." In a short sale, the homeowner sells the house to the highest bidder, and uses the proceeds to pay off the remaining debt. If there is any extra from the sale, it goes to the borrower. If the sale price is worth less than what's left of the mortgage in California, the remaining debt is absolved.

Can a Los Gatos, California real estate attorney help?

If you live in Los Gatos, California and believe that your house is in danger of being foreclosed, you may have more options and protections than you think. You may not know what all of them are, but an accomplished real estate lawyer probably will.

Talk to a Real Estate Law Attorney now!

Life in Los Gatos

Los Gatos, California is a city in Santa Clara County, in the southern portion of the San Francisco Bay Area. Its population is currently about 25,000 people. "Los Gatos" is Spanish for "the cats." The name refers to the mountain lions which used to roam the area.

The nearest large city to Los Gatos is San Jose. It is also a fairly short drive from the other major Bay Area cities of San Francisco and Oakland, meaning that residents of Los Gatos, California have access to a wide variety of amenities and job opportunities that these three large, and very different, cities offer.

Being located in the Silicon Valley region of California, several high-tech companies, including Netflix, ImageShack, Cryptic Studios, among others, are headquartered in Los Gatos, California.

Thanks to the presence of companies like those, many national and international law firms have Silicon Valley offices, many of them close to Los Gatos. Of course, you don't need to be able to afford the rates charged by a large law firm to get quality legal representation in Los Gatos, California. There are many quality and affordable Los Gatos, California lawyers who can help you with almost any legal issue you might be facing.

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