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Los Angeles Bankruptcy and Short Sale Deficiencies Attorney

In today's unstable economy and housing market, many Californians are wondering whether a short sale or a bankruptcy petition is the better choice. At the Law Offices Of Hagen & Hagen, we advise homeowners throughout Southern California about their rights and options. We can assist you, too.

Shortsale Deficiencies In California

Beginning on January 1, 2011, California lenders were prohibited by Senate Bill 931 from trying to collect on short sale deficiencies from a first lien. On July 11, 2011, a similar law (Senate Bill 458) took effect to protect homeowners with deficiencies from non-purchase money junior mortgages.

In essence, these new laws mean that if lenders consent to shortsales, they must accept the proceeds from the short sale as full payment. Does this mean that a short sale is the best way to go for struggling homeowners? Not necessarily. In many cases, filing bankruptcy may still be a better option.

Shortsales Versus Bankruptcy

Shortsales can be complicated. Getting lenders to agree to take less than they're owed was difficult before, but the passage of the new antideficiency laws have made it even more challenging. A short sale can also have painful tax consequences.

At the Law Offices Of Hagen & Hagen, we do not negotiate with banks or other lenders on shortsales, but we can help you file for Chapter 7 or Chapter 13 bankruptcy. As soon as you file, the court issues an automatic stay, immediately halting any foreclosure actions. This gives you peace from creditors and the time you need to reorganize your finances and plan for the future.

Chapter 13 also provides a three- to five-year repayment plan, allowing you to repay some or all of your debt without worrying about interest or penalties.

Considering An LA County Home Loan Modification? Consult Attorney Hagen

In addition to advising people about shortsales, we can talk to you about the implications of a home loan modification. Or, if you have questions about San Fernando Valley bankruptcy and short sale deficiencies, attorney Jeffrey Hagen can explain the new laws and advise you about how to proceed.

Arrange a free initial consultation with the Law Offices Of Hagen & Hagen by calling us at 818-305-6452 or by contacting our lawyer online.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.