Los Angeles Investment Property Foreclosure Lawyers
Anyone who has purchased an apartment building or other rental property can face foreclosure when they stop paying their lender. Unfortunately, investors often have different legal rights than someone trying to save the family home. You need a lawyer who is attuned to the unique needs of investors.
It’s possible to prevent a foreclosure on an investment property, but you should contact Wadhwani & Shanfeld today. A Los Angeles investment property foreclosure lawyer will help explain options to you and, if hired, negotiate a modification or forbearance agreement. Call us today.
Will You Lose Your Investment Property?
Foreclosure is a real possibility whenever you default on a secured loan. Investors do have some options they should consider, which our legal team can explain in more detail in a private consultation.
Any loan can be modified if the lender agrees. A modification should either reduce your monthly payment or let you skip payments until the crisis passes. For example, you might:
Stretch out the length of the loan. Ultimately, you will pay more over the life of the loan if you choose this option, but at least you won’t lose the property.
Lower the interest rate. A lowered rate could shave hundreds or thousands off your bill.
The goal is for your new payment to be sufficiently affordable that you stay current on the debt.
A lender might agree to reduce your monthly payment temporarily or suspend it for an amount of time, such as six months. The unpaid amounts get tacked onto the end of your loan as a balloon payment. Forbearance agreements provide temporary relief and are ideal if you are confident your financial situation will improve soon.
Investors might also seek a short sale if they are pessimistic about the financial future. With a short sale, you sell the investment property for less than what you owe. Because the lender has the lien, they need to approve the sale. The goal with a short sale is to limit your financial losses by offloading the property. The lender gets the proceeds and releases the lien. Some lenders will agree to a short sale if they aren’t confident that they can sell the property themselves.
Bankruptcy can also help investors. Once you file, the court’s automatic stay prevents creditors from foreclosing. This stay helps investors buy time as they negotiate a modification or try to line up additional financing.
Investors have different bankruptcies available, depending on their business structure and other factors. Some bankruptcies can let you reduce the amount that you owe on an investment property, and they might give you time to catch up on past-due payments.
Who Investors Call for Answers
Do you fear foreclosure on a rental property? Contact Wadhwani & Shanfeld today. Investors should meet with an experienced Los Angeles investment property and foreclosure attorney to go over all their options and discuss their financial goals. Whether you intend to liquidate your business or continue to keep it as a going concern, it is critical to select the best path forward. We can help.