Welcome to The Law Offices of Paul Y. Lee

You are not alone in the bankruptcy process. Let us serve as your guide, helping you secure maximum debt relief through whichever type of bankruptcy is best suited to your specific case. Contact us today to get started.

If your home is in foreclosure, it’s essential to know your rights. Many homeowners assume they must leave immediately or that creditors can enter their property, but this is far from the truth. Understanding the foreclosure process and your legal protections can help you make informed choices and explore options to manage your debt. Here’s what every homeowner should know when facing foreclosure.

You Maintain Ownership Until the Foreclosure Sale

When your property is “in foreclosure,” this means it is in the process of foreclosure, but you still legally own it until it is sold at a foreclosure auction. The lender only gains ownership if they are the highest bidder at this sale. Until that time, they have no right to enter your property without your consent.

As the homeowner, you are entitled to stay in your home and can remove any personal property you want. Many people mistakenly believe that they must vacate or leave belongings behind, but as long as you own the home, your possessions are yours to keep.

Avoid Letting Debt Reshape Your Thinking

Debt can be overwhelming, but it’s important to remember that foreclosure doesn’t change all your rights as a homeowner. Foreclosure is a legal process to resolve unpaid debt through the sale of property, but it doesn’t mean that creditors have unrestricted access to your home. In California, the process takes a minimum of four months from the time you receive a formal notice of default to the foreclosure sale.

Often, foreclosing creditors do not act immediately, and the process can take months or even years. During this period, you still legally own your property, and creditors cannot make decisions about your home without following legal protocol.

Stay in Your Home Until the Foreclosure is Finalized

One of the most important steps you can take during foreclosure is to remain in your home until the sale is complete. Even if you expect to lose the property, staying allows you to save money on housing costs, giving you time to prepare for a new living arrangement. Many homeowners are surprised to learn how much time they may have to save up for rent or a down payment on a new home.

Additionally, staying in your home during the foreclosure process can give you more leverage if you’re considering bankruptcy or exploring other options to keep your property. Moving out prematurely could add unnecessary financial stress and limit your options.

Considering Bankruptcy to Save Your Home

If you’re interested in keeping your home and are considering bankruptcy to manage your debt, a bankruptcy attorney can help you understand your options. Filing for bankruptcy can delay foreclosure and potentially provide a path to retain ownership, depending on your financial situation.

There are different types of bankruptcy that may be beneficial. For example:

  • Chapter 13 Bankruptcy: This type allows you to restructure your debts and establish a payment plan, which may include past-due mortgage payments, giving you a chance to stay in your home.
  • Chapter 7 Bankruptcy: While Chapter 7 involves liquidating assets, it can also discharge certain debts and potentially free up resources, which might help you negotiate with your lender.

An experienced attorney can provide guidance on which option is best for you and help you protect your property.

If you’re interested in exploring bankruptcy options or simply want to learn more about your rights during foreclosure, contact The Law Offices of Paul Y. Lee at 951-755-1000 to schedule a free consultation. Our team is here to help you understand your options and make informed decisions.