News & Insights

On this episode of Timeshare Legal Action, host Mitchell Sussman of the Law Offices of Sussman and Associates sits down with Panda Kroll, co-chair of the American Association for Justice's Timeshare Litigation Section.

Host Mitchell Sussman, who established the Law Offices of Sussman & Associates, introduces Panda Kroll in this broadcast, who serves as the Co-chair of the American Association of Justice's Timeshare Litigation Section.

Host Mitchell Sussman, founder of the Law Offices of Sussman & Associates, speaks with Panda Kroll, who serves as the Co-chair for the American Association of Justice's Timeshare Litigation Section.

If you're trying to make sense of foreclosure — whether it's already happening to you or you just want to be prepared — everything really comes down to one question

Foreclosure law distinguishes between two main types of proceedings. Judicial foreclosure requires court involvement where the lender files a lawsuit to recover the property through legal judgment.

When a lien is stripped in Chapter 11 or Chapter 13, the security interest is removed from the property, but the debt itself does not fully go away.

For homeowners facing financial pressure, lien stripping is only available through Chapter 13 or Chapter 11, not Chapter 7.

Under certain bankruptcy laws, unsecured mortgages can be reduced or removed when the property value is lower than the total owed on senior loans. This process, known as lien stripping, allows homeowners in Chapter 13 or Chapter 11 to eliminate second or junior mortgages that are no longer backed by equity.

A second mortgage may be removed through Chapter 13 bankruptcy if the home has no remaining equity to support it.

Homeowners can technically negotiate a short sale on their own, but it is strongly recommended to involve a real estate professional or attorney experienced in short sales.

A short sale may lead to tax consequences when the lender cancels part of the remaining debt after the sale is completed. In such cases, the forgiven amount can be reported to the homeowner through a 1099-C form, which treats the canceled debt as taxable income.

A short sale becomes more difficult when there is a second trust deed on the home because the second lien holder often receives little or no payment from the transaction.

Short sales can come with serious hidden obligations if the paperwork is not reviewed carefully.

One major risk in a short sale is that the homeowner may still be responsible for the remaining loan balance after the sale.

Banks often choose short sales because they allow the loan to be reset with a new borrower who qualifies for the reduced value of the property.

A short sale occurs when a property is sold for less than the amount owed on the mortgage. This usually happens when the home’s market value drops below the remaining loan balance.

A home equity line of credit, or HELOC, is a loan taken after buying a home that lets the homeowner borrow against equity for expenses like cars, credit card debt, or travel.

In California, anti deficiency statutes protect homeowners by limiting a mortgage company’s ability to sue for the remaining loan balance after a foreclosure sale. When a property is sold for less than what is owed, the lender usually cannot pursue the borrower for the difference, known as the deficiency, if certain conditions are met.

Walk away refers to situations where a homeowner may be able to leave a property under certain legal conditions without continuing responsibility for the mortgage, depending on applicable rules.

Walk away refers to situations where a homeowner may be able to leave a property under certain legal conditions without continuing responsibility for the mortgage, depending on applicable rules.