Foreclosure Litigation Strategies

At Goldbach Law Group, our staff is dedicated to advocating the latest, up-to-date foreclosure litigation strategies, which are especially critical in this rapidly developing and evolving area of law.

We utilize an aggressive foreclosure litigation approach that challenges the banks’ and mortgage servicers’ alleged ownership of your mortgage, and their alleged rights to foreclose on your property.   This is a litigation strategy that has been successfully used in many states around the nation, both in bankruptcy court and in state courts.  New law is being made in this evolving legal practice area on a regular basis.

Our primary litigation approach is designed to target widespread deficiencies in the mortgage securitization process.  A majority of mortgages created from 2001-2007 were securitized, meaning giant mortgage originators like Countrywide, New Century Mortgage, Argent Mortgage and others bundled up thousands of mortgages into a particular mortgage pool, then used that pool as collateral for a financial instrument, called a Residential Mortgage Backed Security (RMBS).

These “securities” were then sold to institutional investors, including other large banks, pension funds, insurance companies and Wall Street entities, which bought these securities through special purpose legal entities called “securitized trusts.” Many of these “securitized trusts” now claim ownership interests in these individual mortgages, and claim to have the right to foreclose on a homeowner.

About 62 million homes in the U.S. have a mortgage or deed of trust that purports to name a company called “Mortgage Electronic Registration Systems, Inc.,” commonly known as “MERS,” as a beneficiary of the mortgage.  If you have a so-called MERS mortgage, you may have additional legal issues that can be litigated to invalidate the acts performed by MERS.   MERS has suffered several major defeats in recent months around the nation, although there is no binding legal precedent yet directly on point here in California.  However, there appears to be a growing trend in favor of homeowners and against MERS.

We will also scrutinize every single step in the complex foreclosure process to determine whether your bank or mortgage servicer has complied with California’s strict foreclosure statutes.  At every stage of the litigation, we will advise you of the progress of your case and keep you informed of every significant development.

We can even help homeowners who are current with their mortgage payments, as well as homeowners who have already lost their homes to foreclosure or have been evicted after a foreclosure.  After a foreclosure, you may still have the right to recover your home, or to recover monetary damages.

Do you recommend that we try to obtain a loan modification?

If you’re substantially underwater on your mortgage, a loan modification is like throwing money away, and only the bank wins—again. A loan mod really is a band-aid solution on a gaping wound. The problem isn’t just that your payment is too high. The real underlying problem is homeowners have an asset that’s worth far less than the loan, thus creating long-term damage to a homeowner’s financial interests.  And a loan modification doesn’t change that.  It only makes it a certainty that YOU LOSE = BANKS WIN.

This is why even among homeowners who have obtained a successful loan modification, approximately half of them re-default on their loan modification agreements.  These underwater  homeowners eventually realize that a loan modification is not in their best interests, and drop out of their loan modification agreements.

In these challenging economic times, we know many homeowners are looking for options to foreclosure. The government’s loan modification program has been a massive failure, and has actually been the primary cause of many foreclosures.  And, we can’t expect the banks to bail us out, either. They won’t.

Working with the banks and mortgage lenders can be complex and daunting, to say the least. So what’s the solution?

If you meet these 4 requirements, Goldbach Law Group can provide aggressive and experienced legal representation to help you fight to keep your home, assert your rights and to protect your interests.

1. You are UPSIDE DOWN on your first mortgage,
2. The property is located in CALIFORNIA,
3. The loan was originated between 2001 through 2007
4. Your mortgage was SECURITIZED.

How does the foreclosure process work in California?

The most commonly used process is called the “non-judicial process”. The loan servicer or lender takes non-judicial steps to foreclose your property. Contact our office to see if the loan service provider or lender has followed the law and not violated your rights.

What is the fastest foreclosure timeline allowed by law in California?

California Non-Judicial Foreclosure Timeline:

Calendar		Description
After approx. 90 days without borrower making a mortgage payment		Request to initiate foreclosure received by foreclosure trustee. Default documents prepared and sent for signature/recording (Substitution/Notice of Default).
Start (day 1)		Notice Of Default recorded with County Recorder.
Within 10 business days		Notice of Default and Important Notice are mailed to trustor/homeowner owner on the Deed of Trust at the property address, address on Deed of Trust and any other adresses known to lender/trustee. Notice is also sent to any parties with a recorded Request for Notice as required under Section 2924 (b) (1).
Within 1 month		Notice of Default mailed to all entitled parties with an interest in the property (ie, new owners/junior lien holders) as required under Section 2924 (b) (1).
3 months after recordation of Notice of Default		Notice of Trustee’s Sale is prepared and sent for publication.
25 days prior to Sale Date		Notice Of Sale sent to IRS (if applicable).
20 days prior to Sale Date		Notice Of Sale published in an adjudicated newspaper. (must run once a week for 3 consecutive weeks).
20 days prior to Sale Date		Notice of Sale posted on the property itself. Most posting services will photograph the posting location for their records.
20 days prior to Sale Date		Notice of Sale mailed to the trustor/homeowner and all other parties to which the Notice of Default was mailed as required under Section 2924 (b) (1).
14 days prior to Sale Date		The Notice of Trustee’s Sale is recorded in the County Recorder’s office.
5 days prior to Sale Date		The borrower’s right to reinstate expires.
On sale Date		The property sale is postponed to a new sale date or the property is sold to high bidder, or the property reverts to the foreclosing beneficiary.