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| Home
> Foreclosures |
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| Real Estate
Law - ForeclosuresReal Estate Law - Foreclosures |
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SERVING CLIENTS IN LONG BEACH, ORANGE COUNTY, IRVINE, SANTA ANA, WESTMINSTER,
HUNTINGTON BEACH, FOUNTAIN VIEW, NEW PORT BEACH, SEAL
BEACH, COSTA MESA,
SANTA MONICA, CARSON, TORRANCE, SAN PEDRO,
ALHAMBRA, PASADENA, SAN FERNANDO
VALLEY, LOS ANGELES, LAKEWOOD, CERRITOS, GLENDALE, SEAL BEACH, VENICE BEACH,
BEVERLY HILLS, AND HOLLYWOOD.
SMITH & GARG � LONG BEACH REAL ESTATE ATTORNEYS
Foreclosures: Rights And Remedies Under California Law
The current real estate market, especially in California, is extremely
volatile. At best, it is unstable. DataQuick Information Systems reported that
in November of 2007, real estate sales in Southern California, including Ventura
County, Los Angeles County, Orange County, Riverside County, and San Bernardino,
fell 42.7% from the previous year. In fact, many home values fell as much as
10.3% in November 2007 alone. The market has not seen such a drastic decline in
home values since the mid-1990’s. However, the difference between today and a
decade ago is the drastic number of defaults and foreclosures.
One of the main reasons for these defaults and foreclosures is that many
homeowners and banks obtained subprime mortgages, which are generally lower
mortgage payments at first, but can increase sharply after the initial period. A
subprime loan tends to be higher than the prime rate, and can increase when
prime rate increases. It is often offered to people who have low credit scores
and usually do not qualify for traditional loans. These individuals are high
risk mortgagors. Thus, as the economy or the real estate market slows down, more
and more people will not be able to afford the higher interest loans, resulting
in default and foreclosures. Another reason why more and more Californians are
facing defaults and foreclosures is because of the easy “interest-only
mortgages” or an “interest-only loans.” An interest only mortgage only
requires mortgagors to pay interest in the house and no payment goes toward the
principle balance. From 2002 toward the end of 2005, many Californians obtained
interest only loans, hoping that the value of real properties will continue to
increase, and thus building equity.
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However, as the real estate market stabilized and then took the turn for the
worse, the values of the properties went down; yet, mortgages remained high. In
addition, while the market value of the house goes down, homeowners continue to
pay high property tax rates. Under California law, the taxable value of the home
is assessed at the time of purchase. Thus, if a person bought a house in 2005
for $600,000, but now the house is only valued at $450,000, the homeowner would
still have to pay property tax at the rate of $600,000 home. Although there are
numerous other reasons why California is facing a high volume of foreclosures,
such as a slow economy, lack of job opportunities, and high cost of living, a
combination of subprime mortgages and interest-only loans substantial affect the
average homeowner in California.
Regardless of the reasons why you may face foreclosure, you will need to know
your rights and remedies if faced with such situations. Respectively, Lenders
should also know their legal rights and recourse in foreclosing a property.
California has specific anti-deficiency legislations that would affect
Lenders’ rights and remedies. Strict procedures should be adhered depending on
the situations. The Smith & Garg, LLC attorneys are experienced real estate
attorneys who will be able to assist you in exercising your rights and remedies
under California real estate foreclosure law. Specifically, our attorneys have
experience representing both Lenders and Borrowers in foreclosures. Smith & Garg
represents clients in Long Beach, Orange County, Irvine, Santa Ana, Westminster,
Huntington Beach, Fountain View, New Port Beach, Seal Beach, Costa Mesa, Santa
Monica, Carson, Torrance, San Pedro, Alhambra, Pasadena, San Fernando Valley,
Los Angeles, Lakewood, Cerritos, Glendale, Seal Beach, Venice Beach, Beverly
Hills, and Hollywood. Please contact our attorneys for a personal consultation.
The following articles identify the rights and remedies of both Lenders and
Borrowers in a foreclosure in California, including Usury regulations, judicial
and non-judicial foreclosures, anti-deficiency regulations, right of redemption
versus equity of redemption, and various types of foreclosures.
Should you have any questions or concerns, please contact our experienced
real estate attorneys at Smith & Garg, LLC.
The experienced real estate transaction and litigation attorneys at
Smith & Garg, LLC can help.
Call Smith & Garg, LLC today at
1-877-517-4275 or complete our
Contact Form and let us assist you. |
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