What is Foreclosure in Palo Alto, California?

Find the right Foreclosure Bankruptcy attorney in Palo Alto, CA

Foreclosure is the legal process by which the lender in a mortgage arrangement takes possession of the property (usually a house) that secured the loan. This is done when the Palo Alto, California debtor has repeatedly failed to make their payments. Foreclosure often requires the house to be sold at auction. Often, banks want to get rid of the property as soon as they can, in order to collect as much money as possible, and move on.

In all states in the U.S., including California, foreclosure by judicial sale is allowed. Under this system, the sale is overseen by a court of law, to ensure that the bank makes a reasonable effort to get a decent price at the auction, and that any proceeds above the balance of the mortgage go back to the borrower. In many states, original mortgages are considered non-recourse loans, meaning that if the house is foreclosed and sold for less than the debtor owes, the bank cannot go after the debtor for the remainder. You should consult with an attorney in Palo Alto, California to see if this is the case. However, this usually doesn't apply if the mortgage has been refinanced.

How Can I Avoid Foreclosure in California?

Most importantly, you must not ignore the problem. Doing so will not make it go away, and will probably make it worse. You should stay in close contact with your bank, and be honest with them. You should keep in mind that banks usually don't want to take your Palo Alto home. They aren't in the real estate business, and expect to make money through interest on the loan, not by selling your house. If you are up-front with them early on, they will probably make a reasonable effort to accommodate your financial system if it will keep you from defaulting.

If you can't work things out with your lender, there are other options. You could try a "short sale," which is when you sell your house for whatever amount you can get for it, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank still gets those proceeds, but the remainder of the loan will be forgiven. You could also consider a "short refinance" which allows a chunk of the debt to be forgiven, and lets you refinance the rest.

How Can A Palo Alto, California Attorney Help?

If you are facing the possibility of foreclosure, a good Palo Alto, California real estate attorney can help. At the very least, they will be able to inform you of your legal options.

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Life in Palo Alto

Palo Alto, California is a city in Santa Clara County. It has a population of approximately 64,400 people.

Palo Alto is best known for being the home of Stanford University, which is one of the top universities in the country. Stanford is particularly known for its law school, which consistently ranks as one of the top 3 law schools in the United States, along with Harvard and Yale. Stanford University has produced some of the most successful lawyers in Palo Alto, California.

Because of its location in Silicon Valley, and the presence of a world-class law school, some of the biggest and most well-known law firms in the world have opened offices in Palo Alto.

If you need legal representation, it's almost certain that there's a Palo Alto, California who has the expertise needed to help. Palo Alto, California attorneys are capable of handling a wide range of legal problems.

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