The Law Office of Michael E. Ripley

Exceeding Expectations

Mortgage Default Attorney

Southern California Mortgage Delinquency Lawyer

The Law Office of Michael E. Ripley is in the business of helping people in California, particularly those who are trying to survive the loss of a job, a salary freeze or some other hardship that may have led them down the path of financial instability.  If clients in Oceanside, Encinitas, Chula Vista or Carlsbad are behind on their mortgage payments and teetering on default or delinquency, attorney Michael E. Ripley will advise them to come in with all their financial information to see what can be done.

Timeline for Notice of DefaultNotice of Default

Definition: Lenders file in the public records where the property is located a public notice called the Notice of Default. In some states, the Notice of Default is also attached to the home, generally on the front window, like a big scarlet letter. It states that the borrower is in default, behind in the mortgage payments, and if the payments are not paid up, the lender will seize the home.  In California, lenders typically do not file a Notice of Default until the borrower is at least 90 days behind in making payments. When a borrower has missed 2 payments and is 60 days behind, at that point many banks send out a 30-day notice of intent, which they are required by law to do before filing a Notice of Default.

Lenders must then wait 90 days. During that 90-day period, the borrower has the right to make up the back payments and reinstate the loan. After 90 days, the lender is required to publish a notice in the newspaper for 20 days and then may sell the property to the highest acceptable bidder on the courthouse steps. If no acceptable bid is received, the trustee then conveys the property to the lender.

Notice Posted on Your Front Door

If a Notice of Trustee's Sale is posted on your front door, you may feel like you have no place to turn.  Sometimes our clients have tried to negotiate with their lenders themselves to no avail. We know it is hard to get it right because information needs to be presented to the bank or lender in a specific format.  So that is where the experienced staff at the Law Office of Michael E. Ripley can help. We can submit a package of information on behalf of our clients to the lenders in the format they require in order to get a win-win for both the financial institution and the homeowner.

HELOC/2nd Liens

The lender on my HELOC/2nd lien is demanding payment; what should I do?

With increasing frequency, more and more lenders for second mortgages, or home equity lines of credit (HELOCs) are demanding payment. For some homeowners, this is happening years after they last had any contact with the lender.

The usual reason for this is simple: home values are increasing, and more and more often, properties that were "underwater" now have equity. The lenders for HELOCs are therefore waking up, and are looking for payment.

Even worse, it is happening with regularity that HELOC lenders are selling the loan to a third party, and the third party is demanding payment. Although the third party probably only paid "cents" on the dollar, they are making demand for the back payments. With years of accrued interest and delinquent payments involved, homeowners are finding themselves in an unpleasant situation.

For our part, the Law Office of Michael Ripley has been successful at negotiating satisfactory conclusions in these situations, for holders of second mortgages and HELOCs. In the last 12 months, we have successfully negotiated for quite a few homeowners, without lawsuits having been filed or litigation ensuing.

Loan Modification vs. Mortgage Default

Attorney Michael E. Ripley and his staff will do their best to work out a loan modification for their clients.  We have been successful in helping people who are in foreclosure to get their homes back with a loan modification plan. And we will do whatever it takes so that our clients don't lose their homes.

Call San Diego Home Mortgage Default Lawyer

Contact San Diego lawyer Michael E. Ripley to discuss your Mortgage default or delinquency and how we can help you Avoid Foreclosure and/or even get you a Loan Modification.

We offer a FREE Initial Consultation at our office on High Bluff Drive, conveniently located in San Diego County.

Email us HERE, or simply Call us directly now at 858-792-5800.

Stop your Foreclosure

Loan Modification FAQs

What are my options?

Answer = Although a loan modification is one possibility, it is not the only one.  You may also consider a short sale.  You may also consider a deed in lieu of foreclosure.  Bankruptcy is another option.  Foreclosure avoidance is another option.  At the Law Office of Michael Ripley, we consider all of the options for a perspective client, before giving advice as to what the best option for them will be.

Why choose Loan Modification?

Answer = Loan modification works to create a mortgage resolution that is financially sustainable for a homeowner. The most common benefit to the homeowner is avoiding foreclosure. Lenders benefit by reducing the losses they would incur through foreclosing on the homeowner.

What if my credit is bad?

Answer = Whether your credit is good or bad does not determine if you get a loan modification.

What if I don't have any equity or I'm upside down on my mortgage?

Answer = Generally, people who are seeking loan modifications want to stay in their house even though they owe more than it is worth.

What can a prospective client expect in terms of a loan modification?

Answer = You will know what to expect during the first meeting with us. The government's guideline is a house payment cannot exceed 31 percent of your gross income. If a payment is 40, 50 or 60 percent of your gross pay, you can expect to get your payment down.

How much can someone expect to achieve dollar wise?

Answer = This dollar amount varies. Generally, with 30 to 40 years left on a loan and a savings of $500 a month, there would be a savings of over $150,000 over the life of the loan.

Do all banks engage in loan modification?

Answer = All banks are supposed to engage in loan modification. Some are easier to work with than others. We have been successful in getting loan modifications from every lender out there.

Is the government involved?

Answer = Yes, it can be, and there are several programs offered under President Obama's Making Home Affordable program. These include: Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP), Second Lien Modification Program (2MP) and Home Affordable Foreclosure Alternatives Program (HAFA).

How long should a client expect the process to take?

Answer = There is no easy answer and each case is different. But most cases are successfully completed within 60-90 days.

What should I expect my payments to be for my new loan?

Answer = The guidelines used by each bank are different, and the guidelines have been changing on a continuing basis. Typically, your lender will modify your loan so that you can afford to make your monthly payment. They do this by lowering the interest rate, extending the life of the loan, by principal reduction, or otherwise, by reducing the monthly payment so that you can continue to live in your home.


Contact Us

The Law Office of

Michael E. Ripley

Loan Modifications

12520 High Bluff Drive

Suite 110 (First Floor)

San Diego, CA  92130

Phone (858) 792-5800

Fax (858) 794-9132


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