by Jennifer Hendrickson




Foreclosure and Loan Modification

Bankruptcy can stop a foreclosure, but not forever. I can advise you about the foreclosure process and help you make those decisions that affect your mortgage and your property.  I have saved many of my clients' homes from foreclosure, occasionally through a combination of loan modification and bankruptcy.  The Bankruptcy Court for the Northern District of California has a Mortgage Modification Mediation process.  If our attorneys can make a determination that you might qualify for home loan modification, we can put you into this mediation program.  Under this program, we work directly with the lender through a mediator to get your loan modified. In other instances, my clients have saved tens of thousands of dollars in tax consequences or deficiency debt by surrendering real property in bankruptcy.  The key is evaluating your realistic goals early on, before potential options have been closed off.

The "Foreclosure Spectrum."

The following steps occur in this order when you fall behind on your mortgage payments.  If you are behind on your mortgage payments, or are in danger of doing so, then you should seek help.  There may be options available to you that your bank will never volunteer.

Step 1.  Notice to Cure and Intention to Accelerate

bulletTypically a letter from your bank informing you that you are behind on your payments.  This is a demand for payment.
bulletYou are typically behind 1 to 3 payments.  Sometimes more.
bulletThis is a debt-collection attempt.
bulletThe lender may be demanding "full payment" of the entire note.

Step 2.  Notice of Default and Election to Sell Under Deed of Trust

bulletThis notice is recorded with the Country Recorder.  
bulletThis is a public record.
bulletThis may be accompanied with a "Notice of Substitution of Trustee."  The substituted trustee is the entity that has been hired to carry out the sale.
bulletFrom this point, you have a minimum of 90 days until a Notice of Trustee's Sale will be recorded.

Step 3.  Notice of Trustee's Sale

bulletAt least 3 months have passed since a Notice of Default was recorded.
bulletThis is a public document, recorded at the Recorder's Office.
bulletSale is set for 20 or more days from the notice.

Step 4.  Trustee's Sale

bulletAlso known as a "foreclosure sale." 
bulletThis sale occurs on the "courthouse steps."
bulletApproved buyers bid in an auction-form buying process.

A Bankruptcy petition can halt a trustee sale - but you have to file before the trustee sale date and time.  If you waited until past this point, then your property has been sold.  In order to keep your house, you will need to "reinstate" your mortgage, and that is very unlikely (depending on your individual, unique circumstances).  If you are unable to reinstate your mortgage, then a bankruptcy petition can stall and delay eviction proceedings.

Step 5.  Notice to Quit

bulletAlso known as an "Eviction Notice."
bulletAt the point, the purchaser of the Deed of Trust for your home has recorded their deed.  
bulletYou have 3 days to vacate your home or face further civil proceedings.

Step 6.  Unlawful Detainer

bulletAlso known as "Eviction."
bulletThis is a lawsuit against you.
bulletYou will receive a "Summons and Complaint" from a process server.  This is an accelerated process, and the trial date will be set within 21 days of the day you receive the Complaint.
bulletUpon receipt of the Complaint, you have 5 days to "Answer."   An Answer is a legal filing that outlines your defenses to eviction.
bulletYou MAY be able to stall the eviction process by filing bankruptcy, but you need to contact an attorney before it's too late. Get help sooner rather than later.

Step 7.  Lockout by Sheriff

bulletThe Sheriff will post on the property a "5 Day Notice to Vacate."
bulletOn or after the 5th Day, you will be locked out of the house.


Initial Consultation

In order to assess your situation with regard to foreclosure defense or mortgage modification, I only meet with clients in a foreclosure situation in person and I do not offer legal advice over the telephone.  The initial consultation typically lasts about 45 minutes and you have the opportunity to discuss your unique circumstances with an attorney who has experience with foreclosure defense and the application process for a loan modification.  There charge for this consultation is $150 and is based on a reduced rate of the attorney's hourly rate.


829 Sonoma Ave., Suite 8
Santa Rosa, CA  95404

Copyright 2010-2016 Hendrickson Law Group, PC. The information contained on this website is provided for informational purposes only. Therefore, any information on this website should not be construed as legal advice. You should not act or rely upon this information without seeking formal professional counsel specific to your case. Any offer to provide free consultation is not intended to create an attorney-client relationship between Jennifer Hendrickson, Attorney at Law, and you. Also, any transmission of information from this website or communication via e-mail does not constitute or create an attorney-client relationship between us and any recipients. All liability is expressly disclaimed with respect to actions taken or not taken based on any or all the contents of this website. To the extent this is considered attorney advertising, as that term is defined in the Business & Professions code, a copy of this advertisement is available for review with the responsible attorney, Jennifer Hendrickson. We may be considered a Debt Relief Agency under Bankruptcy Code section 528.