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If you’re facing a deficiency judgment after foreclosure in Los Angeles, you’re not alone. Many homeowners find themselves in this difficult situation, unsure of their rights and options. At Shapero Law Firm, our Los Angeles deficiency judgment lawyers understand the stress and uncertainty you’re experiencing. We’re here to provide the legal guidance you need to protect your financial future. Call our office today at 213-394-6031 to schedule a consultation with one of our skilled attorneys.
Deficiency judgments can be a confusing and stressful issue for Los Angeles homeowners who have gone through foreclosure. In this section, we’ll break down the basics of deficiency judgments and how they work in Los Angeles. Our experienced deficiency judgment lawyers at Shapero Law Firm are here to protect your rights.
A deficiency judgment is a court order that requires a borrower to pay the difference between the amount owed on a mortgage and the amount the lender recovers through a foreclosure sale. In Los Angeles, if your home sells for less than your outstanding loan balance, your lender may seek a deficiency judgment to recover the remaining debt. Our Los Angeles deficiency judgments lawyers at Shapero Law Firm can assess your unique situation and explain how deficiency judgments apply to your case. We’ll help you understand your rights and explore your options for minimizing or avoiding a deficiency judgment.
California’s anti-deficiency laws offer significant protection to homeowners in Los Angeles against deficiency judgments, particularly for purchase money loans and non-judicial foreclosures. Under California Code of Civil Procedure Section 580b, lenders can’t pursue deficiency judgments on loans used to purchase a residential property with one to four units that the borrower occupies. Additionally, Section 580d prohibits deficiency judgments following non-judicial foreclosures, which are the most common type in California. However, judicial foreclosures, which involve court proceedings, may allow deficiency judgments under certain conditions.
Loans that have been refinanced or home equity lines of credit (HELOCs) not used for purchasing the property do not receive anti-deficiency protection, allowing lenders to pursue deficiency judgments for these loans. Junior lienholders can also pursue deficiency judgments if they hold a second mortgage or HELOC not used for purchasing the property. In short sales, lenders cannot seek deficiency judgments unless fraud or damage is involved.
With over a decade of litigation experience, Attorney Sarah Shapero, founder of Shapero Law Firm, has secured seven-figure jury trial wins and saved countless homes from foreclosure. A Super Lawyer and Lawyer of Distinction, she brings expertise in foreclosure, employment, and bankruptcy law, practicing in California and federal courts.
Trust her proven track record and commitment to delivering powerful legal results.
In some cases, it may be possible to avoid a deficiency judgment after foreclosure in Los Angeles. Strategies for avoiding a deficiency judgment include:
If you’re worried about a deficiency judgment after foreclosure, don’t wait to seek legal help. Contact Shapero Law Firm today to schedule a consultation with one of our experienced Los Angeles deficiency judgment lawyers.
If you’re facing a deficiency judgment in Los Angeles, you may feel like you have no options. However, our skilled deficiency judgments lawyers at Shapero Law Firm can help you explore various legal strategies to minimize the impact on your finances and your life. In this section, we’ll discuss your legal options and how our attorneys can help you navigate this challenging situation.
If you receive a deficiency judgment in Los Angeles, you have several legal options to consider. These include:
Yes, in many cases, it’s possible to negotiate or settle a deficiency judgment in Los Angeles. Lenders may be willing to accept a reduced amount or payment plan to avoid the time and expense of collecting the full judgment. Our Los Angeles deficiency judgment lawyers at Shapero Law Firm have decades of combined experience negotiating with lenders on behalf of our clients. We can review your financial situation, assess your options, and work to reach a settlement that fits your needs and budget.
Our Los Angeles deficiency judgments lawyer can help protect your assets in several ways. These include:
If you’re facing a deficiency judgment in Los Angeles, don’t try to handle it on your own. Contact Shapero Law Firm today to schedule a consultation with one of our skilled Los Angeles deficiency judgment lawyers.
A deficiency judgment can have a significant impact on your financial life and credit score in Los Angeles. It’s important to understand the potential consequences and take steps to protect your assets and rebuild your credit. In this section, our knowledgeable Los Angeles deficiency judgments lawyers will explain what you need to know about the financial and credit impact of deficiency judgments and how we can help you move forward.
If you can’t pay a deficiency judgment in Los Angeles, the lender may take steps to collect the debt. This can include:
Our Los Angeles deficiency judgment lawyers at Shapero Law Firm can help you understand your options if you can’t pay a deficiency judgment. We may be able to negotiate a settlement, set up a payment plan, or explore other alternatives to help you manage the debt.
In some cases, it may be possible to discharge a deficiency judgment in bankruptcy in Los Angeles. If you qualify for Chapter 7 bankruptcy, the deficiency judgment may be eliminated along with your other unsecured debts.
When it comes to deficiency judgments in Los Angeles, time is of the essence. Lenders have a limited window to pursue a deficiency judgment, and once obtained, they have several methods to enforce the judgment against you. In this section, our experienced Los Angeles deficiency judgment lawyers will discuss the time limits and enforcement mechanisms you need to be aware of and how we can help you navigate these critical issues.
In Los Angeles, which follows California state law, lenders have limited opportunities to pursue deficiency judgments after a foreclosure. Most residential foreclosures in California are non-judicial, meaning they occur outside the court system and do not allow for deficiency judgments. Deficiency judgments are only possible in judicial foreclosures, where lenders must file for such judgments within three months after the foreclosure sale. California’s anti-deficiency laws provide significant protections for borrowers. For example, under Section 580b of the California Code of Civil Procedure, lenders cannot seek deficiency judgments on purchase money loans for one- to four-unit residential properties occupied by the borrower.
Additionally, deficiency judgments are prohibited following non-judicial foreclosures. However, exceptions exist, such as when loans are refinanced or involve second mortgages or home equity lines of credit not used for purchasing the property. In these cases, lenders might pursue a deficiency judgment if the foreclosure is judicial. At Shapero Law Firm, our attorneys can review your loan documents and foreclosure paperwork to determine the applicable statute of limitations and help you explore your options for defending against a deficiency judgment.
In Los Angeles, whether a lender can seek a deficiency judgment after a short sale depends on the specific circumstances of the sale and the type of loan involved. For most first mortgages used to purchase a primary residence, California’s anti-deficiency laws prohibit lenders from seeking a deficiency judgment after a short sale. However, these protections may not apply to second mortgages, home equity loans, or refinanced loans.
Don’t wait to get the legal help you need. Contact Shapero Law Firm today to schedule a consultation or call 213-394-6031 to speak with one of our skilled Los Angeles deficiency judgment lawyers. We’re here to help you move forward with confidence and peace of mind.
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I contacted Sarah when I was facing tough legal issues. Although I never met her in person she ended up being an amazing advocate, tough negotiator and very knowledgeable representation. In all my communication Sarah was clear, thorough and very neutral about my position and options. I’ve had multiple dealings with attorneys…so I’m experienced. I would give Sarah top ratings across the board.
I have worked with many in the past and Sarah is great with understanding my goals and working with me to create a plan that fits those goals. She has assisted on a number of real estate transactions and legal matters for me and is always available, communicative, and presents all options with risks and costs so we can decide the best route. Highly recommend.
I cannot thank the Shapero Law Firm’s Real Estate team enough for their outstanding service. They are a shining example of what a law firm should be: knowledgeable, compassionate, responsive, and effective. If you are in need of real estate legal services, look no further – the Shapero Law Firm is the gold standard. I wholeheartedly recommend them to anyone seeking expert guidance and representation in the realm of real estate law. They have earned every one of these five stars and more!
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Determining whether your loan qualifies for anti-deficiency protection in Los Angeles can be difficult, as it depends on factors such as the type of loan, the purpose of the loan, and the specific language in your loan documents.
In general, California’s anti-deficiency laws apply to first mortgages used to purchase a primary residence. However, these protections may not apply to second mortgages, home equity loans, or refinanced loans.
In Los Angeles, a deficiency judgment can stay on your credit report for up to seven years from the date of the judgment. This can have a significant negative impact on your credit score and make it difficult to obtain new credit or loans.
Yes, in Los Angeles, a lender with a deficiency judgment against you may be able to garnish your wages or seize funds from your bank account to satisfy the judgment.
Wage garnishment involves the lender obtaining a court order requiring your employer to withhold a portion of your paycheck and send it to the lender until the judgment is paid. Bank account seizure involves the lender freezing your account and taking funds to apply toward the judgment.
In Los Angeles, as part of California, the enforcement of deficiency judgments is subject to a statute of limitations. Once a lender obtains a deficiency judgment through judicial foreclosure, they have four years to enforce it, according to California’s statute of limitations on debt collection (California Code of Civil Procedure § 337)1. This period begins from the date the judgment is entered.
However, it’s important to note that deficiency judgments are relatively uncommon in California due to the prevalence of non-judicial foreclosures, which do not allow for such judgments. Additionally, various factors can toll or extend this time limit, such as the debtor being out of state or filing for bankruptcy1.
In Los Angeles, a foreclosure and a deficiency judgment are related but distinct legal processes.
A foreclosure occurs when a lender takes possession of a property after the borrower defaults on their mortgage payments. The lender then sells the property to recover as much of the outstanding loan balance as possible.
A deficiency judgment, on the other hand, is a court order that requires the borrower to pay the difference between the loan balance and the amount the lender recovers through the foreclosure sale. In other words, if the foreclosure sale doesn’t generate enough money to fully pay off the loan, the lender may seek a deficiency judgment to collect the remaining balance from the borrower.
While a foreclosure involves the loss of the property, a deficiency judgment creates a personal liability for the borrower and can lead to wage garnishment, bank account seizure, and other collection actions.
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Schedule a free consultation with one of our experienced lawyers today by filling out the form below, or call us at 415-906-6134.
Schedule a free consultation with one of our experienced lawyers today by filling out the form below, or call us at 415-273-8015.