What is Foreclosure in Torrance, California?

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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 Torrance, 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, mortgages which have not been refinanced are "non-recourse loans." This means that, in the event of default, the bank can take ownership of the house and sell it; but if the sale price happens to be less than the balance of the mortgage, the lender cannot go after the borrower for the remainder. Because of this, some people have found that their best option is to simply walk away from the home if the mortgage is more than the house is worth. You should talk with a Torrance, California Attorney to see if this state is one of them.

How Can I Avoid Foreclosure in California?

First and foremost, you should not ignore the possibility of foreclosure. Failing to respond to collection calls from your lender will not make the problem go away. As unpleasant as this might seem, you should stay in contact with your creditor, and be honest with them. One should remember that banks generally don't want to take your house in Torrance. They issued your mortgage expecting to earn a profit on the interest. Taking possession of, and selling, your house is a last resort for them. Therefore, if you are honest with them about your financial situation, they are likely to make reasonable accommodations to prevent you from defaulting.

If no deal can be worked out, or the mortgage payments have become prohibitive, you might consider a "short sale". While the lender has to consent to it, many will take a moderate loss if it means avoiding foreclosure (which lenders generally treat as a last resort). This allows you to sell the house for whatever price it can fetch on the current market, and hand the proceeds over to the bank. If the sale nets less than the balance, some or all of the deficiency might be forgiven. There is also the option of a "short refinance," which forgives a significant portion of your mortgage debt, and refinances the rest.

How Can A Torrance, California Attorney Help?

If you are worried about foreclosure, a good Torrance, California real estate Lawyer might be able to help. A Lawyer can increase your chances of keeping your home, and help minimize the financial impact if keeping it proves impossible.

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Life in Torrance

Torrance, California is a city located in the southwestern region of Los Angeles County. Within city limits, Torrance has over 1.5 miles of unbroken beachfront, to which most of its 145,000 residents have access.

Torrance can trace its early history to a 1784 Spanish land grant. Wealthy landowners established several large ranches in the area that would eventually become Torrance.

Modernly, Torrance is a vibrant, environmentally-conscious community. It is home to one of the very few wetlands situated in an urban area. They are set aside as a nature preserve, which was once set for oil drilling. The efforts of conservationists and Torrance, California environmental lawyers prevented this from happening, however.

Many foreign corporations have their American headquarters in Torrance, including Toyota and Honda. These companies employ a large number of people in a wide range of professions, including local Torrance, California lawyers who represent the interests of their employers in the United States.

If you live in Torrance, California, and find yourself in need of legal services, it's very likely that there's a Torrance, California attorney who can help you out.