Sean S. Hanley
Attorney at Law for Foreclosure

San Jose, California, Bankruptcy, Foreclosure and Debt Relief Attorney at Law since 2007. In addition to bankruptcy, foreclosure and debt relief law, I specialize in real estate transaction law and general law. Call me now for a free phone consultation at 408-293-0344.

Foreclosure - New times mean new laws that affect tenants, owners, and occupants:

American citizens are facing the most precarious economic scenario of our nation's history - the unemployment rate is skyrocketing, the market is crashing, and the homeless rate is rising as the hopes and dreams of millions of Americans seem to be dwindling with every: job lost; stock that seems to be promising, but crashes; and, most importantly, house lost and family torn apart by the ravaging and devastating real estate market that has driven the government to take notice and make change.

The stats don't lie. Economic progress has remained painfully slow for a long time. More than 3 million homes have been lost to foreclosure since the housing bubble burst and roughly 1 in 10 homeowners with mortgages are currently in foreclosure, or more than 30 days late in payments, which is the highest delinquency rate in history. Research indicates that without more aggressive measures, another 8 to 10 million foreclosures will occur in the next four years, which amounts to a staggering figure of 1 in 6 households with a mortgage.

After years of failed efforts, Congress and the new administration are considering more aggressive measures to handle our economic strain, including a possible change to Bankruptcy Law. Hopefully, homeowners can begin to rest more soundly at night knowing that they will be sleeping under the same roof for a long time to come. There are several different theories of what Congress and our new government has in store for us. Homeowner relief could come as part of a new economic stimulus plan, a revised financial system bailout program, or as a standalone measure.

The legal process of the modern mortgage system has stymied and complicated the process. In past recessions, it was not uncommon for lenders to work out more affordable terms with borrowers who had fallen on hard times. Bankers often preferred to cut their losses by lowering monthly payments and stretching them over a longer term, rather than bearing the cost of foreclosure. But, the complex system of financing the recent housing boom, which was based heavily on the pooling of mortgages that were then sold to thousands of investors, has hopelessly complicated a once fairly simply renegotiation between lender and homeowner.

Multiple classes of investors, each with different claims on the same mortgage, often have conflicting interests. Some will do better with a loan foreclosure, while others would profit by keeping the loan performing. Some contracts setting up these pools pay loan "servicers" (a company that manages mortgage payments to investors) more generous payments for loans in foreclosure and offer little financial incentive to undertake the more costly process of modifying terms.

Smart business people hire qualified legal counsel to ensure that they are not only complying with, but also taking advantage of the constantly evolving and complex legal system.

The government has initiated new laws in regards to real property and will implement many others, in recognition that our economy is struggling and suffering akin to Great Depression times and as such, many Americans have lost their homes and are faced with the prospect of not knowing where they will rest their head the next night.

New laws have greatly impacted the situation faced by many dealing with foreclosure. First, newly added Civil Code Section §1923.3 prohibits the lender (or trustee, in Bankruptcy) from recording a notice of default until 30 days after either making contact with the borrower or satisfying certain "due diligence" requirements of attempted contact. The contact with the borrower in person or by telephone is to "assess the borrower's financial situation and explore options for the borrower to avoid foreclosure." The borrower has a right to a subsequent meeting within Fourteen (14) days and must be provided with a telephone number to contact HUD for referral to a certified counseling agency.

Real Estate related laws are constantly changing as the government attempts to pattern the best plan to help stimulate our economy and get Americans back on their feet. The above referenced laws, for example, are very time sensitive (Civil Code Section 1923.5, only applies to loans for an owner's "principal residence" made from January 1, 2003 - December 31, 2007); thus, it is imperative that you seek the assistance of a qualified real estate attorney with up to date knowledge in the ramifications of the constantly changing foreclosure laws to ensure you receive the best possible results.

Newly added Civil Code Section §2924.8 requires the posting of a special notice along with the posting of the notice of sale on residential property if the billing address for the mortgage note is different from the property address. This special statutory notice must also be mailed to the property in an envelope addressed to the "Resident of Property Subject to Foreclosure Sale."

Notice laws are very technical. Failing to seek the advice of a Real Estate attorney to satisfy the necessary notice requirements can be very costly, stressful, and time consuming.

A foreclosing lender or purchaser at a foreclosure sale must maintain the vacant residential property or be subject to a $1,000. per day violation fine. "Failure to maintain" means failure to care for the exterior of the property, such as permitting excessive foliage growth that diminishes the value of surrounding properties, failure to prevent trespassers or squatters from remaining on the property, and failure to prevent mosquito larvae growth in standing water or conditions that create a public nuisance. This list is by no means exhaustive - there are many requirements to "maintain," in which a qualified attorney can advise you.

A foreclosing lender must now give the tenant a 60-day Notice to terminate the tenancy instead of the previous 30 day notice requirement. However, this 60 day notice does not apply to the owner-or any party to the note who is occupying the foreclosured property. The owner or the party to the note need only be given a 3 day notice to quit.

A recently enacted law (1/1/09), permits an HOA to record a request that a mortgagee, trustee, or any person authorized to record a notice of default regarding any of the separate interests governed by the HOA, mail to the HOA a copy of a trustee's deed (on any unit) within Fifteen (15) business days after recordation of the trustee's deed.

The request by the HOA must include the legal description or the assessor's parcel number of the separate interest as well as the name and address of the association and a statement that it is an HOA. The request must be recorded before the filing of a notice of default. Note that failure of the mortgagee/lender/trustee to mail a copy of the trustee's deed to the HOA does not affect title to the real property.

It is a scary time for Real Estate investors. There is no doubt that the new government will be implementing new laws to address our precarious and troubling economic situation. The good news for you is that you don't have to face this situation alone - don't find yourself saying, "I didn't know that... or, I didn't know I could lose my home... or, I should have asked someone about this..." In the long-run, the best way to save money and ultimately, your house, is to consult a real estate attorney.

We currently offer a free phone consultation and low flat rates for foreclosure legal services. Foreclosures range from as low as $350. for the Standard Foreclosure Service to $750. for the Premier Foreclosure Package. For a more detailed information about foreclosure services and pricing, please see Foreclosure - Services Pricing.

For a more detailed information about foreclosure, please see Foreclosure - California Property, Foreclosure - Debt Relief Income, Foreclosure - Deed In Lieu, Foreclosure - FICO Score Impact, Foreclosure - Mortgage Workout, Foreclosure - New Laws, Foreclosure - Senate Bill 458, Foreclosure - Services Pricing, Foreclosure - Short Sale and Foreclosure - Walking Away.

For a more detailed information about bankruptcy, please see Bankruptcy - Business Chapter 7, Bankruptcy - Client Procedure, Bankruptcy - Credit Card Debt, Bankruptcy - Discharge, Bankruptcy - Discharged Debts, Bankruptcy - Domicile Requirements, Bankruptcy - Forgiveness Of Debt, Bankruptcy - Frequently Asked Questions, Bankruptcy - Means Test, Bankruptcy - Personal Liability, Bankruptcy - Procedural Requirements, Bankruptcy - Protection From Foreclosure, Bankruptcy - Required Documents and Bankruptcy - 341 Meeting.

For a more detailed information about debt relief, please see Debt Relief - Credit Reports, Debt Relief - Credit Score and Debt Relief - Debt Collection Act.

In addition to bankruptcy, foreclosure and debt relief, our firm also offers a full range of legal, real estate and loan related services including elder law, estate planning, probate, real estate exchanges, real estate loans, real estate transactions and small business matters.

If you have questions about foreclosure, please do not hesitate to contact our San Jose bankruptcy, foreclosure and debt relief attorney today. Call us now for a free phone consultation at 408-293-0344 or contact us via e-mail by filling out the form on the Contacts page and a representative from our office will reply immediately.

More information: Contact Us, Bankruptcy - Business Chapter 7, Bankruptcy - Client Procedure, Bankruptcy - Credit Card Debt, Bankruptcy - Discharge, Bankruptcy - Discharged Debts, Bankruptcy - Domicile Requirements, Bankruptcy - Forgiveness Of Debt, Bankruptcy - Frequently Asked Questions, Bankruptcy - Means Test, Bankruptcy - Personal Liability, Bankruptcy - Procedural Requirements, Bankruptcy - Protection From Foreclosure, Bankruptcy - Required Documents, Bankruptcy - 341 Meeting, Debt Relief - Credit Reports, Debt Relief - Credit Score, Debt Relief - Debt Collection Act, Estate Planning, Estate Planning - Protecting Your Assets, Foreclosure - California Property, Foreclosure - Debt Relief Income, Foreclosure - Deed In Lieu, Foreclosure - FICO Score Impact, Foreclosure - Mortgage Workout, Foreclosure - New Laws, Foreclosure - Senate Bill 458, Foreclosure - Services Pricing, Foreclosure - Short Sale, Foreclosure - Walking Away, Sean S. Hanley Biography