Encino Foreclosure Protection Lawyer
A California foreclosure does not happen overnight, and it does not happen in a single step. The nonjudicial process most lenders use runs on a statutory clock, and that clock leaves a surprising number of openings for a homeowner who knows where they are. Encino foreclosure protection lawyer help starts with understanding which stage your loan has reached, because the right move after a missed payment looks very different from the right move after a notice of sale has been posted on your door. Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that handles foreclosure defense, Chapter 13, Chapter 7, and loan modification for homeowners in Encino and throughout Los Angeles County and Southern California.
Encino has a lot of long-held homes with substantial equity, along with owners who refinanced, took out second mortgages, or carried a loan through a divorce, a business downturn, or a medical emergency. Those facts matter, because the strategy that saves a home with a large cushion of equity is not the same one that saves a house with an underwater second lien. Below, we walk through how a California foreclosure moves, where you can interrupt it, and what each of your options actually does.
How a California Foreclosure Unfolds, Stage by Stage
Most California home loans are secured by a deed of trust, which lets the lender foreclose without going to court. That is why people are often surprised by how fast things can feel once the paperwork starts arriving. The process begins when the lender records a notice of default after you fall behind. That notice has to tell you that no sale date can be set until roughly 90 days after the notice may be recorded. In practice, the earliest a sale can occur is three months and 20 days after the notice of default is recorded.
Once that window closes, the lender records a notice of sale. The law allows the notice of sale to be recorded a few days before the three-month period ends, as long as the sale itself falls at least three months and 20 days after the notice of default. The notice of sale must be mailed by registered or certified mail at least 20 days before the sale, and it must also be posted on the property at least 20 days out. If you are seeing a notice taped to your front door, you are already inside that final 20-day stretch at minimum.
Along the way, you hold a right that many homeowners never use. A monetary default can be cured, meaning you can reinstate the loan by paying what is past due plus the lender’s permitted costs, up to five business days before the sale date. Sales are also postponed more often than people expect. When a sale is pushed back at least 10 business days, the beneficiary must send you written notice of the new date within 5 business days of the postponement. A postponed sale does not mean the threat is gone, only that the date moved.
Why Choose Wadhwani & Shanfeld for Foreclosure Defense in Encino
Wadhwani & Shanfeld has helped more than 30,000 individuals and families resolve debt, and foreclosure is one of the situations where speed and judgment matter most. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy through the American Board of Certification, a distinction held by a small fraction of attorneys nationwide. Together, the firm’s attorneys bring more than 90 years of combined legal experience to homeowners across Encino, the San Fernando Valley, the Westside, and the rest of Los Angeles, Orange, Riverside, and San Bernardino Counties.
Raj Wadhwani, founding shareholder and partner, graduated from Southwestern Law School, helped pilot the Best Case Bankruptcy software in 1998, and was the first attorney to file a bankruptcy case electronically in the Central District of California. That kind of fluency with the filing process helps when a sale date is days away and a petition has to be prepared quickly and correctly. Greg Shanfeld, founding shareholder and partner, earned his law degree at the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. Both are Board-Certified Specialists in Consumer Bankruptcy.
What this means for a homeowner is direct access to an attorney from the very first call, with no runaround and no pressure to come into an office first. The firm acts fast when a foreclosure sale, garnishment, or repossession is days away, and it handles cases entirely by phone, email, video, and online chat when that is easier. Consultations are free, and 100% virtual consultations are available. Because the firm also handles Chapter 7, Chapter 13, debt settlement, loan modification, and second mortgage settlements, the recommendation you get is based on what fits your home and finances, not on the only tool a firm happens to offer.
Situations That Put Encino Homeowners at Risk of Foreclosure
- Missed payments after a job or income loss: A few months behind can grow into a notice of default quickly. Chapter 13 is often built for this exact problem, spreading arrears over a plan while you stay current going forward.
- A second mortgage or home equity line that outgrew the property’s value: When a home is worth less than the first mortgage, a wholly unsecured second lien may be removed in a Chapter 13 case, and second mortgage settlements can resolve the balance outside of court.
- Medical bills and credit card debt competing with the mortgage: Chapter 7 can discharge unsecured debt such as cards and medical bills, which frees up monthly cash to keep the house payment current.
- Divorce or the death of a co-borrower: One income may no longer carry a loan that was underwritten on two. Loan modification or a Chapter 13 plan can restructure what is owed around the income that remains.
- Self-employment or small business income that dropped: Owners who guaranteed business debt personally, or who drew from the house to fund the business, may need small business bankruptcy and business debt solutions alongside foreclosure defense.
- Back taxes or a levy threatening cash flow: IRS tax debt can drain the money meant for the mortgage. Representation with the IRS to stop levies and set up payment arrangements can protect the cash that keeps the home loan current.
- Judgments and wage garnishment from creditor lawsuits: A garnishment reduces take-home pay and often triggers mortgage delinquency. Filing bankruptcy stops most garnishments once the case is filed.
- A loan that has been sold or transferred: New servicers sometimes misapply payments or mishandle notices, and a homeowner can be pushed toward default through no real fault of their own.
What to Do Right Now If You Have Received a Foreclosure Notice
The first thing to do is figure out exactly which document you are holding. A notice of default, a notice of sale, and a letter from a servicer about a missed payment each trigger a different timeline. Pull together your mortgage statements, every notice you have received, and any letters about loan modification or a payment plan. If a notice of sale is posted on your home, write down the sale date today, because the single most important number in your file is the days remaining until that date.
Next, call an attorney before the clock gets short. You can reinstate a monetary default until five business days before the sale, but that cutoff comes before the sale itself, so waiting until the last week removes the cleanest option. A bankruptcy petition can be filed even later than that, and the automatic stay takes effect the moment the petition is filed, halting the sale. Still, a rushed filing is harder to do well, and a case prepared with more lead time gives you more room to choose the right chapter and the right exemptions.
Be careful about two common mistakes. One is paying a foreclosure “rescue” company or a petition preparer up front. A bankruptcy petition preparer can type information into forms, but cannot give legal advice, choose your exemptions, or represent you if a creditor or trustee raises a problem. Errors in a bankruptcy filing can cost you property or your discharge. The other mistake is ignoring a loan modification offer or assuming a pending modification request stops the sale. Always confirm in writing what, if anything, has paused the process.
If you decide to file, the case is handled in the U.S. Bankruptcy Court for the Central District of California. Encino falls within the San Fernando Valley Division, which serves communities including Encino, Sherman Oaks, Tarzana, Reseda, Van Nuys, and Woodland Hills. Your zip code, using your street address and not a P.O. box, determines the division, and the court’s locator confirms it. Any related lawsuit over a mortgage or other debt would be heard by the Los Angeles County Superior Court, which sits in geographic districts across the county. The firm files in every division of the Central District, so the logistics are handled for you.
Chapter 13, Chapter 7, and Alternatives: Matching the Tool to Your Home
Chapter 13 is the workhorse of foreclosure protection. It reorganizes your debts into one monthly payment over three to five years, and creditors are bound by the plan once the court confirms it. If you are behind on the mortgage, the arrears can be repaid through the plan while you resume regular payments, so the lender cannot foreclose as long as you keep up. Chapter 13 also suits homeowners whose income is above the Chapter 7 means test, who owe priority debts like taxes or support arrears, or who have more equity than their exemptions cover. In some cases it can also strip off a wholly unsecured second mortgage.
Chapter 7 works differently. It eliminates qualifying unsecured debt, usually in roughly four months, but it does not by itself cure mortgage arrears. It can help a homeowner who is current or nearly current on the mortgage and whose real problem is everything else, such as credit cards, medical bills, and personal loans. Whether you keep the house in Chapter 7 depends on whether your equity is protected by California’s exemptions, and on staying current on the loan.
California does not use the federal exemptions. Instead, a filer must choose one of two state systems for the entire case, and must have lived in California long enough to use them. One system offers a homestead exemption that is tied to the countywide median home price within a statutory floor and ceiling, which is adjusted periodically. For Encino homeowners with significant equity, that choice can decide whether a home is fully protected. The other system offers a far smaller residence exemption but a flexible wildcard that can work better for renters or those with little home equity. Picking correctly is one of the most consequential decisions in the case, and the firm’s board-certified attorneys make it with care for every client.
Not every foreclosure problem is a bankruptcy problem. Loan modification can lower the payment, second mortgage settlements can resolve a junior lien for less than the balance, and debt settlement can reduce other obligations without a filing. The honest answer for some homeowners is that bankruptcy is not the right move, and the firm will tell you so.
Frequently Asked Questions About Foreclosure Protection in Encino
How quickly can bankruptcy stop a foreclosure sale?
The automatic stay takes effect the moment your petition is filed with the court, and it halts the foreclosure. In an emergency, the firm can often prepare and file a case very quickly to stop a sale that is only days away. The earlier you call, the more carefully the case can be prepared.
How long does a lender have to wait before selling my home?
The sale date cannot be earlier than three months and 20 days after the notice of default is recorded. The notice of default itself must warn that no sale date can be set until about 90 days after it may be recorded. Added to that, the notice of sale must be mailed and posted at least 20 days before the sale.
Can I catch up on missed payments without filing bankruptcy?
Often, yes. A monetary default can be reinstated by paying what is past due plus permitted costs, up to five business days before the sale date. If you cannot come up with that lump sum, Chapter 13 lets you repay the arrears over time through a plan.
Will I lose my house if I file Chapter 7?
Most of the firm’s clients keep their homes. In Chapter 7, the question is whether your equity is protected by California’s homestead exemption. If it is, and you stay current on the mortgage, you keep the home. If you have more equity than the exemption covers, or you are behind on payments, Chapter 13 is usually the better route.
Does filing bankruptcy erase my mortgage?
No. A discharge eliminates your personal liability for qualifying debt, but the lender’s lien on the property generally survives. That is why keeping the home means staying current on the loan, or curing the arrears through a Chapter 13 plan.
What happens to my second mortgage?
If the home’s value is less than what you owe on the first mortgage, a wholly unsecured second mortgage can in some cases be stripped off in Chapter 13, turning it into unsecured debt. Where that is not available, second mortgage settlements can negotiate the balance down outside of court.
My sale was postponed. Am I safe?
Not necessarily. A postponement just moves the date. If the sale is postponed at least 10 business days, the beneficiary must give you written notice of the new date within 5 business days. Treat a postponement as extra time to act, not as a resolution.
Can I file bankruptcy if I filed before?
Yes, subject to waiting periods. You must wait 8 years between Chapter 7 filings, 4 years to file Chapter 13 after a Chapter 7, 2 years between Chapter 13 filings, and generally 6 years to file Chapter 7 after a Chapter 13, though that last period can be shortened if your plan paid enough to unsecured creditors.
Will foreclosure also trigger a deficiency or tax problem?
It can raise related issues. Deficiency balances after a foreclosure or repossession can generally be discharged in bankruptcy, and IRS tax debt connected to a loan outcome may need its own strategy. These are worth raising in your first consultation so nothing is overlooked.
Do I have to come into the office to hire a foreclosure attorney?
No. The firm handles cases fully by phone, email, video, and online chat for clients anywhere in Southern California, and 100% virtual consultations are available. In-person meetings are available if you prefer them.
Will my employer or neighbors find out?
Your employer is not automatically notified of a bankruptcy filing. They may learn of it if they are a creditor, if a garnishment must stop, or if Chapter 13 payments are deducted from your pay. California and federal law prohibit an employer from firing you solely because you filed.
Foreclosure Protection for Homeowners Across Encino and Southern California
The firm works with Encino homeowners and with neighbors throughout the San Fernando Valley, including Sherman Oaks, Tarzana, Woodland Hills, Reseda, Northridge, Granada Hills, North Hollywood, Van Nuys, Mission Hills, North Hills, San Fernando, and Sylmar. The firm also serves the Westside and nearby communities such as Hollywood and Santa Monica, along with Los Angeles proper and Santa Clarita.
Beyond the Valley, the firm represents homeowners across Los Angeles County, including Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Signal Hill, and Huntington Park, as well as the Antelope Valley communities of Lancaster, Palmdale, and Acton. In the eastern San Gabriel Valley and Inland Empire, clients come from Pomona, Claremont, Glendora, West Covina, Montclair, Chino, Chino Hills, Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, and Riverside, along with the Coachella Valley. In Orange County, the firm serves Anaheim, Santa Ana, Garden Grove, Buena Park, Fullerton, Huntington Beach, Westminster, Costa Mesa, Newport Beach, Tustin, La Habra, Placentia, Mission Viejo, and Laguna Niguel.
Talk to an Encino Foreclosure Attorney Before the Sale Date Arrives
If you have received a notice of default or a notice of sale, the most useful thing you can do is get a clear answer about where you stand. Speaking with an Encino foreclosure attorney at Wadhwani & Shanfeld costs nothing, and you will talk directly with a lawyer, not a screener. We will review your loan, your equity, your income, and your other debts, explain every option inside and outside of bankruptcy, and tell you honestly which path gives you the best chance of keeping your home.
Call Wadhwani & Shanfeld today for a free consultation. If a sale date is close, tell us right away so we can move quickly. You can meet by phone, email, video, or online chat, whichever is easiest for you.
