Palisades and Eaton Fires.

Circumstances and available cash flow change particularly in the face of the Palisades and Eaton Fires. Making monthly mortgage payments, servicing other debt along with normal living expenses is challenging.

Navigating forward, through insurance claims and bank pressure for mortgage payments are daunting tasks that can lead to high anxiety. Informed decision making is vital to 1/ ensuring you get the most out of your insurance claims and 2/ contending with servicing company’s demand for mortgage payments. NEVER walk away from property before clearly assessing recoveries from insurance, mitigating potential legal liability on your mortgage(s), and assessing tax consequences. If you ignore your lender, it will undoubtedly commence foreclosure proceeding to protect its vested interest in your property. Thing get more complicated the consequences of which could make a bad situation much worse!

I was heavily involved in helping hundreds of homeowners who defaulted on their mortgages during the Great Recession (2007-2009) which lasted well into 2012 with thousands of foreclosures and loan modifications and other bank interventions. Banks and mortgage servicers are compelled to expand their loss mitigation departments to contend with the massive losses arising from the Palisades, Eaton, and other fires. Help is a just a phone call or text away. Also, State Bar of California Legal Help here and brochure.

There is significant upside to you engaging a real estate professional particularly one who understands California real estate, law, and taxes and, importantly, is empathetic to your circumstances. If you appreciate active / candid communication, informed decision making, and loss mitigated results, I would be honored to assist.

What you choose to do about the damage and/or destruction to your home / property transcends a simple workout. There are many moving parts that deserve discussion, analysis, and advice.

« Understanding Borrower’s Financial Situation – Hardship »

Your lender/s will be interested to know what your financial situation is. The “hardship” caused by the fire is obvious, particularly with full destruction. Still, loss mitigation will be interested to know whether you have other assets that might make the promissory note holder “whole”. Borrower financials are require in every submittal so that consideration can be made about a possible loan modification as well as your lender request to forgive any repayment of outstanding debt on the original loan amount.

Below you will find a list of needed financials. If financials are not produced to the lender/s, they will simply start foreclosure proceeds to gain title to the Property. Particularly in the case of the Palisades Fire, it is likely that the LAND is worth more than the improvements which is another reason the lender will focus on retaking title!

Upon receipt, I will promptly review the documents you are able to share and then provide legal, tax, and practical advice. Together, we will explore the best strategies to approach your lender in order to achieve your preferred outcome. It will be a negotiation. Our objective is to mitigate any liability exposures and, if possible, keep the property so that you can either rebuild or sell the land. 

« What’s at Risk if you Don’t Act Quickly & Decisively »

Potential severe legal & tax liability exposure.
Lose the right to proactively determine your fate.

These are complicated and dynamic issues that I address collaboratively with you / each client.

Keep Options ..

  • Loan Modification,
  • Repayment,
  • Forbearance,
  • Reinstatement / Cure.

Leave Options ..

  • Standard Sale,
  • Short Sale,
  • Deed in Lieu,
  • Foreclosure.

Let’s find the right option that works best for you.
Testimonials • Disclaimer • Compensation Structure

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Needed Documentation

All communications and documentation provided is Confidential Attorney-Client Work Product. These documents allow me to carefully and fully assess your situation in order to discuss realistic options.

Loan Documentation

  • Last 2 mortgage statements bearing FULL LOAN NUMBER
  • Lender demand payoff for ALL loans: these confirm what’s currently owed
  • Promissory Note/s: these confirm who is legally responsible
  • Loan Disclosures: these confirm what you represented to the lender, or that it told you
  • Essentially, the thick packet of docs given to you when the loan/s was/were funded

Income • Cash Flow • Hardship 

Bank Deposits • Tax Reporting

  • Last 2 Bank Statements » ALL pages / everything
  • Recent Federal Tax Returns – 2023 + 2022 (+ 2024 when available)
    • W-2’s, ALL schedules + Form 4506-T
    • If not filed, provide Electronic Extension for each year
    • I do NOT need State tax returns

HOA Documentation

  • Most recent HOA Dues Statement : if applicable

Let’s TALK CONFIDENTIALLY. Attorney-Client Work Product 1, 2

  • The cornerstone of my approach is to help you make informed decisions.
  • I will explain, in plain English, the legal / tax / real estate / practical impacts of available options.

You MUST TAKE ACTION.

  • Do NOT ignore your lender and the letters you receive from them!
  • My approach involves you in each/every step of chosen strategies.
  • No matter what option is recommended, there is a good deal of work to be done.
  • Time is of the essence.
  • If you don’t take action, or refuse to do so, the lender will simply take over & divest you of ownership & possession.
  • Doing nothing will worsen the affects on your FICO score and you may be exposed to significant legal and tax liability.

POTENTIAL COLLATERAL BENEFITS.
When a property is sold, we address and resolve these following other concerns that may affect title:

  • Tax Liens (i.e., Federal, State, EDD, etc.)
  • Judgment (‘Abstract’) Liens
  • HOA Arrearages

Compensation Structure

Image: California Foreclosure Process