Granada Hills Foreclosure Protection Lawyer
Wadhwani & Shanfeld represents homeowners in Granada Hills and across the San Fernando Valley who have fallen behind on a mortgage and need to keep the house. The firm handles Chapter 13 and Chapter 7 bankruptcy, foreclosure defense, loan modification, and second mortgage settlements for families throughout Los Angeles County, Orange County, Riverside County, and San Bernardino County.
A Granada Hills foreclosure protection lawyer works against a calendar that the lender controls and the homeowner often does not see until it is well underway. California’s nonjudicial foreclosure process runs through recorded notices rather than a courtroom, which means a house can move toward a trustee’s sale without a single hearing. The notice of default, the notice of sale, and the sale date each trigger deadlines, and the options available to you narrow as each one passes.
The good news is that those same deadlines give you room to act. A filing in bankruptcy court halts a scheduled sale the moment the petition is filed, and for many Granada Hills homeowners, who tend to have substantial equity built up over years of ownership, the right filing and the right exemption choice are what make the difference between keeping the home and losing it.
How the California Foreclosure Timeline Works Against You
Most home loans in California are secured by a deed of trust, which lets the lender foreclose without suing you. The process begins when the lender’s trustee records a notice of default against the property. That notice must state that no sale date may be set until roughly 90 days after it is recorded, and the sale itself cannot take place earlier than three months and 20 days after the recording. The notice of sale can be recorded a few days before the three-month period ends, so long as the eventual sale date still respects that minimum.
Once the notice of sale is out, the clock tightens. The notice must be sent by registered or certified mail at least 20 days before the sale, and it must also be posted on the property for at least 20 days. If the sale is postponed by at least 10 business days, the lender must give you written notice of the new date within 5 business days of the postponement. Many homeowners assume a postponement means the problem went away; it usually means the sale was simply moved.
The most useful date to know is the reinstatement cutoff. Under Civil Code section 2924c, you can cure a monetary default by paying what is past due, plus allowable costs, up to five business days before the sale. After that, the lender can demand the entire loan balance. When a Granada Hills homeowner cannot come up with the arrears in a lump sum, Chapter 13 can do the same job over time instead.
Situations That Lead Granada Hills Homeowners to Seek Foreclosure Help
- Missed Payments After Income Loss: A job loss, reduced hours, or a slow stretch in self-employment can put a borrower several payments behind quickly. Chapter 13 allows the arrears to be folded into a three to five year plan while the regular payment continues.
- Medical Bills and Illness: Hospital debt and time away from work often push mortgage payments aside. Chapter 7 can eliminate qualifying medical debt, freeing income to keep the mortgage current.
- Notice of Default Already Recorded: Once the notice is recorded, the 90-day and three-month-and-20-day windows are running. This is the point at which reinstatement, loan modification, and bankruptcy are all still realistic.
- Sale Date Within Days: A trustee’s sale scheduled in the coming week or two calls for an emergency filing. The automatic stay takes effect on filing and stops the sale, and the firm acts quickly when a sale is days away.
- Second Mortgage or HELOC Pressure: A junior lienholder can foreclose too. In some Chapter 13 cases a wholly unsecured second mortgage can be stripped off, and in others the firm negotiates a settlement of the second loan.
- Loan Modification Denied or Stalled: Lenders sometimes keep a borrower in review while the foreclosure timeline continues in the background. Pursuing a modification and preparing a bankruptcy filing at the same time protects you if the review fails.
- Tax Debt Threatening the Property: IRS balances can sit alongside mortgage arrears. Chapter 13 treats priority tax debt in the plan, and the firm also represents clients with the IRS directly.
- Divorce, Inheritance, or Co-Owner Disputes: A change in household income or ownership can strand a mortgage that one person can no longer carry alone, and the options differ depending on who is on the loan.
Why Choose Wadhwani & Shanfeld for Foreclosure Protection in Granada Hills
Wadhwani & Shanfeld is a consumer bankruptcy and debt relief law firm that has helped more than 30,000 individuals and families across Southern California, including homeowners in Granada Hills, Northridge, Mission Hills, and the rest of the San Fernando Valley. The firm is led by two Board-Certified Specialists in Consumer Bankruptcy, certified through the American Board of Certification, with more than 90 years of combined legal experience. Clients speak directly with an attorney from the first call, and the firm moves fast when a garnishment, foreclosure sale, or repossession is days away.
Raj Wadhwani, a founding shareholder and partner, is a Southwestern Law School graduate who helped pilot the Best Case Bankruptcy software and was the first attorney to file a bankruptcy case electronically in the Central District of California. Greg Shanfeld, also a founding shareholder and partner, earned his law degree from the University of Southern California and has handled more than 10,000 bankruptcy cases over three decades. The firm files in every division of the U.S. Bankruptcy Court for the Central District of California.
That experience matters in a foreclosure because the strategy depends on details: how much equity you hold against the exemption, how large the arrears are, whether your income supports a Chapter 13 plan, and whether a second mortgage can be addressed. Because the firm handles bankruptcy and its alternatives, including loan modification and second mortgage settlements, the recommendation follows your situation instead of the only service on offer. The first consultation is free, and cases can be handled fully by phone, email, video, and online chat, with 100% virtual consultations available.
Bankruptcy as a Foreclosure Defense: Chapter 13, Chapter 7, and Your Equity
Chapter 13 is the workhorse for saving a home that is behind. You propose a plan, typically running three to five years, that cures the missed payments over time while you keep making the ongoing mortgage payment. Once the court confirms the plan, creditors are bound by it. The lender cannot proceed with the sale as long as the plan is performed, and a Chapter 13 can also deal with priority tax debt, support arrears, and a wholly unsecured second mortgage along the way.
Chapter 7 can also protect a home, but the question is different. It eliminates qualifying unsecured debt such as credit cards and medical bills, and the trustee can sell nonexempt property. Whether your home is at risk depends on whether your equity fits within California’s homestead protection. If you are current on the mortgage and your equity is covered, you keep the house. If you are behind on payments, Chapter 7 alone does not cure the arrears, and Chapter 13 is usually the better fit.
California does not use the federal exemption list. It makes you choose between two systems for the whole case. One carries a large homestead exemption, set by a formula tied to the county’s median home price within a floor and a ceiling and adjusted annually for inflation. The other offers a much smaller residence exemption paired with a flexible wildcard. Homeowners with real equity generally want the first system; the second can suit a filer with little home equity. You must also have lived in California for 730 days to use California’s exemptions. Making this choice correctly is one of the most consequential decisions in a foreclosure case, and it is one the firm’s attorneys work through before anything is filed.
What to Do Right Now if Your Granada Hills Home Is in Foreclosure
Start by locating the paperwork. The recorded notice of default and, if it has been issued, the notice of sale tell you exactly where you stand, and the sale date on the latter is the date everything else is measured from. Collect your most recent mortgage statements, any letters from the servicer or trustee, your last several pay stubs, and a list of every debt you owe, including second mortgages and tax balances. If you have received a notice of sale, note the date it was mailed or posted, since the 20-day windows run from the sale date backward.
Do not rely on a verbal assurance from the servicer that a sale will not happen while a modification is under review. Get anything in writing, and keep a separate eye on the sale date. A pending application does not by itself stop the sale, and a postponement should be confirmed by the written notice the lender owes you. Call an attorney before the reinstatement cutoff, which falls five business days ahead of the sale, because that is the last point at which you can cure the default by paying the arrears.
If a bankruptcy filing makes sense, it is made in the U.S. Bankruptcy Court for the Central District of California. Your street address determines the division, and Granada Hills falls within the San Fernando Valley Division, which sits in Woodland Hills. If you are also being sued by a creditor in Los Angeles County Superior Court, or a judgment has been entered against you, tell the attorney right away, because the automatic stay reaches lawsuits and collections as well as the sale. One common mistake is waiting until the sale is a day or two away; an emergency filing is possible, but an earlier call gives the attorney time to prepare a complete, accurate petition instead of a rushed one.
Be wary of anyone who offers to stop a foreclosure for an upfront fee or who files forms on your behalf without giving legal advice. A bankruptcy petition preparer cannot choose your exemptions or represent you if the trustee or the lender objects, and an error in a filing can cost you property or your discharge.
Foreclosure Protection Questions Granada Hills Homeowners Ask
Will filing bankruptcy stop a foreclosure sale in Granada Hills?
Yes. The automatic stay takes effect the moment the petition is filed and bars the lender from going forward with the sale. If a sale is only days away, the firm can often prepare and file quickly to get the stay in place before it happens.
How long do I have before my home is sold after a notice of default?
The sale cannot occur earlier than three months and 20 days after the notice of default is recorded. A notice of sale must then go out by certified or registered mail and be posted on the property at least 20 days before the sale. In practice, you have a little over three months from the notice of default to act before a sale can take place.
Can I catch up on missed payments without filing bankruptcy?
You can reinstate the loan by paying the overdue amount plus allowable costs up to five business days before the sale. After that, the lender can require the full balance. If you cannot pay the arrears in one sum, Chapter 13 spreads the cure across a plan.
Do I lose my house in 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 are current on the mortgage, you keep the house. If you are behind or have more equity than the exemption covers, Chapter 13 is usually the better route.
What is the difference between the two California exemption systems?
One system includes a large homestead exemption tied to local home prices and suits most homeowners. The other pairs a small residence exemption with a flexible wildcard and is often a better fit for renters or filers with little equity. You must choose one for the entire case.
Can bankruptcy get rid of a second mortgage?
In some Chapter 13 cases, a second mortgage that is wholly unsecured, meaning the home is worth less than the first mortgage balance, can be stripped off and treated as unsecured debt. Where that is not available, the firm also negotiates second mortgage settlements outside of bankruptcy.
If my loan modification is still under review, can the lender still sell my home?
A pending review does not automatically stop the sale date from arriving. Keep tracking the sale date, get any postponement confirmed in writing, and be prepared to file bankruptcy if the review does not resolve in time. If a sale is postponed by at least 10 business days, the lender owes you written notice of the new date within 5 business days.
Will a foreclosure also trigger collection from my other creditors?
Trouble with the mortgage often travels with other debt. If creditors have sued or obtained judgments, the automatic stay halts lawsuits, bank levies, and wage garnishments as well. Wage garnishment on an ordinary judgment is limited by statute, and filing bankruptcy stops most garnishments outright.
Will my employer find out if I file to save my home?
Not automatically. An employer may learn of it if it is a creditor, if a garnishment has to stop, or if Chapter 13 plan payments are deducted from your paycheck. Federal and California law bar an employer from firing you solely because you filed.
I filed bankruptcy before. Can I still use it to stop this foreclosure?
Possibly, 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. A prior filing also affects how long the automatic stay lasts, so share your full filing history with the attorney.
Do I have to come to an office to get foreclosure help?
No. The firm handles cases by phone, email, video, and online chat, and offers fully virtual consultations, so you can get started the same day you call.
How long will a foreclosure or bankruptcy stay on my credit report?
A Chapter 7 can remain on your report for up to 10 years from filing, and the bureaus typically remove a Chapter 13 after 7 years. The effect on your score fades well before those dates, especially if you rebuild with on-time payments and low balances.
Serving Granada Hills Foreclosure Clients Across the San Fernando Valley and Beyond
The firm’s foreclosure work begins in Granada Hills and extends across Los Angeles County. From Granada Hills through Northridge, Mission Hills, North Hills, and Sylmar, the firm represents homeowners facing notices of default and trustee’s sales. It also serves clients in Reseda, Woodland Hills, Encino, Van Nuys, North Hollywood, San Fernando, Hollywood, and Santa Monica, along with Santa Clarita and the Antelope Valley communities of Lancaster, Palmdale, and Acton.
Across the broader region, Wadhwani & Shanfeld serves homeowners in Los Angeles, Long Beach, Lakewood, Torrance, Compton, Inglewood, Gardena, Norwalk, Bellflower, Paramount, Cerritos, Cypress, Signal Hill, and Huntington Park. In the Inland Empire and eastern San Gabriel Valley, it works with clients in Ontario, Rancho Cucamonga, Upland, Fontana, San Bernardino, Pomona, Chino, Chino Hills, Montclair, Claremont, Glendora, West Covina, and Riverside, as well as the Coachella Valley. In Orange County, it assists families in 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 a Granada Hills Foreclosure Protection Attorney Before Your Sale Date
The window for stopping a foreclosure is set by recorded dates, and it closes without any further warning to you. If you have received a notice of default or a notice of sale, call Wadhwani & Shanfeld for a free consultation and speak directly with an attorney. A Granada Hills foreclosure protection attorney at the firm will review your arrears, your equity, and your income, explain whether Chapter 13, Chapter 7, a loan modification, or a settlement fits, and tell you honestly which path gives you the best chance of keeping your home.
