As a bankruptcy attorney in California I have consulted hundreds of homeowners trying to stop foreclosure after being denied a loan modification. While these homeowners followed their lenders directions to the tee in an effort to avoid foreclosure, they ended up with a foreclosure sale date hanging over their head. The unfortunate thing is they trusted their lender to act in their best interest and now may lose their home to foreclosure. Some of these people have been victims of mortgage fraud or predatory lending, and should consider litigation rather than modification.

Speaking to a California bankruptcy attorney early in the foreclosure process is critical so you fully understand your options and foreclosure laws. You may or may not be good candidate for a loan modification. You may want to consider a short sale or "cash for keys". None the less, a California bankruptcy attorney can see if a Chapter 13 or Chapter 7 bankruptcy is right for you and offer you sound legal advice.

 If you have a 2nd mortgage that's underwater a Chapter 13 can eliminate that mortgage and strip the lien, offering you a true principal reduction. If your property is seriously upside down and you want to walk away, filing bankruptcy first will help you avoid deficiency judgments and serious income tax implications.

If you still want to keep your home regardless, there's a strategy a bankruptcy attorney can employ to try and modify your mortgage loan in bankruptcy. Regardless of your situation, if you are trying to get a loan modification you should consult a bankruptcy attorney even if you are not considering bankruptcy. Many of our clients came to us to use bankruptcy as a shield, not a sword. Bankruptcy can be used as a offensive strategy rather than a defensive one. Basically, you don't have to go bankrupt to file bankruptcy!

Author bio

The author writes about California bankruptcy attorneys and exposes their importance in critical situations. To know more about them, visit www.chapter7lawoffices.com