As a Riverside foreclosure litigation attorney, I am often asked about the resolutions our office obtains for clients through foreclosure litigation. While there is no set goal common to all loan litigation clients, De Novo Law Firm has successfully litigated several cases to successful resolutions throughout southern California. While there is no guarantee that we can achieve the same results for every client, we have been successful for many of our clients including this lawsuit against HSBC.
One of the most difficult cases we were able to resolve for a client was in a recent HSBC litigation matter for our client who lives in Hemet, California. The client approached me after having her home sold. Despite having a judgment against her for possession of the property (unlawful detainer), De Novo Law Firm initiated litigation attacking the lender for predatory lending, unlawful foreclosure, and breach of contract. Although we had difficulty in obtaining temporary orders protecting our client, we were eventually able to get the case to a stable point to reach a settlement.
Soon thereafter, De Novo Law Firm negotiated a settlement that permanently kept our client in her home. In the settlement, De Novo cut the loan balance in half with a new balance of $179,000. This reduction in principal gave our client equity in the property after being over $150,000 under water on the loan. Additionally, we negotiated a reduced interest rate at 2% with mortgage payments including principal, interest, taxes, and insurance never going above $1,000 a month for a term of 25 years. Before foreclosure, the client had monthly payments greater than $3,000 a month over a 40-year term. Finally, because the home was already sold at a foreclosure sale, the lender agreed to rescind the sale and return the property back into our clients name.
In total, the foreclosure attorneys at De Novo Law Firm were able to cancel the foreclosure sale, give the client equity in her property, and lower her payments to below-market rates for the life of the loan. Including the principal balance, term reduction, and interest rate reduction, De Novo Law Firm saved the client hundred of thousands in principal balance and interest payments.
If you or someone you know is in foreclosure and or has recently lost their home, our office may be able to help. For a free consultation, contact our office at (951) 801-5570. We can also help you consider non-litigation options including loan workouts or loan modifications.