Do You Need a Realtor or Attorney to Stop Foreclosure in California?
When facing foreclosure, one of the first questions homeowners ask is: "Who should I call?" The answer depends on your goal, your timeline, and whether you want to keep the home or sell it. Here's what each professional can actually do for you, and when you might need more than one.
Quick Answer
To sell your home before foreclosure: You need a realtor. AB 2424 requires a listing agreement with a licensed broker to trigger the 90-day postponement.
To fight the foreclosure in court: You need an attorney. Only lawyers can represent you in legal proceedings.
To understand your options for free: Start with a HUD-approved housing counselor. They're trained, certified, and cost nothing.
Not sure which professional you need?
Quick response. No pressure. No judgment.
Three Professionals Who Can Help
Each professional has a different scope of practice. Understanding what each can and cannot do will help you choose the right help for your situation.
HUD-Approved Housing Counselor
Free, government-certified foreclosure prevention help
What They Can Do:
- Assess your financial situation and explain your options
- Help you communicate with your mortgage servicer
- Assist with loan modification applications
- Explain forbearance, repayment plans, and other alternatives
- Review your loan documents and identify potential issues
- Connect you to local assistance programs
What They Cannot Do:
- Represent you in court
- Sign legal documents on your behalf
- List your home for sale
- Guarantee any outcome
Find one at consumerfinance.gov/find-a-housing-counselor or call 800-569-4287
Foreclosure Defense Attorney
Legal representation and court proceedings
What They Can Do:
- Represent you in court proceedings
- Challenge improper foreclosure procedures
- File lawsuits for Homeowner Bill of Rights violations
- Negotiate with lenders on legal matters
- File bankruptcy to stop foreclosure (automatic stay)
- Advise on deficiency judgments and legal liability
- Review contracts for legal issues
What They Cannot Do:
- Sign a listing agreement (not licensed to sell real estate)
- Trigger AB 2424's postponement protections
- Market your home or find buyers
- Negotiate real estate transactions
Some attorneys work on contingency for HBOR violations (no upfront cost, paid from settlement)
Licensed Real Estate Broker/Agent
Property sales and AB 2424 implementation
What They Can Do:
- Sign the listing agreement that triggers AB 2424's postponement
- Market your home to find buyers
- Negotiate purchase offers
- Coordinate short sales with your lender
- Help you sell at full market value before auction
- Provide comparative market analysis
- Manage the closing process
What They Cannot Do:
- Provide legal advice
- Represent you in court
- Challenge foreclosure procedures legally
- File bankruptcy on your behalf
No upfront cost. Commission only paid if and when your home sells.
Not Sure Which Professional You Need?
Your situation is unique. Sometimes a quick conversation can help clarify which path makes the most sense. I'm happy to talk through your options and, if an attorney or HUD counselor is a better fit, point you in the right direction.
(213) 444-2225 • No sales pitch. Just clarity on your next step.
Side-by-Side Comparison
| Service | HUD Counselor | Attorney | Realtor |
|---|---|---|---|
| Trigger AB 2424 postponement | ✗ | ✗ | ✓ |
| Represent in court | ✗ | ✓ | ✗ |
| Help with loan modification | ✓ | ✓ | ✗ |
| Market and sell your home | ✗ | ✗ | ✓ |
| File bankruptcy | ✗ | ✓ | ✗ |
| Challenge HBOR violations | ✗ | ✓ | ✗ |
| Coordinate short sale | ✗ | Limited | ✓ |
| Upfront cost | Free | $1,500+ | None |
🔑 Key Insight: AB 2424 Requires a Realtor
If you want to use California's AB 2424 to postpone your foreclosure sale by up to 90 days, you specifically need a listing agreement with a licensed real estate broker. Attorneys understand the law and can explain it, but they cannot sign the document that triggers the protection. This is why many law firms explain AB 2424 but refer clients to realtors to actually use it.
Which Professional Do You Need? A Decision Framework
Start Here: What's Your Primary Goal?
🏠 "I want to keep my home"
Start with: HUD-approved housing counselor (free). They can help you apply for loan modification, forbearance, or repayment plans. Add an attorney if: Your lender is unresponsive, you believe they violated your rights, or you need to file bankruptcy.
💰 "I want to sell and protect my equity"
Start with: A realtor who understands AB 2424. They can trigger the postponement, market your home, and help you sell at full market value. Add an attorney if: You have complex legal issues, title problems, or pending lawsuits against you.
⚖️ "I think my lender did something wrong"
Start with: A foreclosure defense attorney. California's Homeowner Bill of Rights gives you legal remedies if your servicer engaged in dual-tracking or violated other protections. You may be entitled to damages.
💳 "I'm drowning in debt beyond just the mortgage"
Start with: A bankruptcy attorney. Filing Chapter 7 or Chapter 13 triggers an automatic stay that immediately stops foreclosure. A bankruptcy attorney can advise whether this makes sense for your overall financial situation.
🤷 "I don't know what I want yet"
Start with: A HUD-approved housing counselor. They're free, unbiased, and can help you understand all your options before you commit to any path.
When You Need Both a Realtor AND an Attorney
Sometimes one professional isn't enough. Here are situations where you may benefit from working with both:
- Selling while pursuing legal claims: You want to sell your home under AB 2424 (realtor) but also believe your lender violated the Homeowner Bill of Rights (attorney). You can do both simultaneously.
- Complex title issues: Your property has liens, judgments, or title defects that require legal resolution before you can sell.
- Inheritance or probate: You're facing foreclosure on an inherited property that's still in probate. You need legal help to clear title and a realtor to sell.
- Divorce proceedings: Foreclosure is happening during a divorce. An attorney handles the legal divorce matters while a realtor handles the sale.
- Potential deficiency: You're underwater on your mortgage and need legal advice about deficiency judgment risk while a realtor coordinates the short sale.
💡 My Take
I've worked with many homeowners who started with an attorney, got great legal advice, and then were referred to me because AB 2424 requires a realtor to execute. There's no competition between attorneys and realtors in foreclosure situations. We solve different problems. The key is knowing which problem you're trying to solve first.
Have a Sale Date Approaching?
If you're thinking about selling before foreclosure, time matters. AB 2424's listing agreement must be submitted at least 5 business days before your sale date. I can help you understand if this path makes sense and how much time you actually have.
(213) 444-2225 • Quick call. No obligation. We'll figure out your best next step together.
Beware of Foreclosure Rescue Scams
Unfortunately, foreclosure situations attract scammers. Protect yourself by knowing the warning signs:
- Guaranteed results: No one can guarantee they'll stop your foreclosure. If someone promises this, walk away.
- Large upfront fees: HUD counselors are free. Realtors are paid at closing. Be wary of anyone demanding thousands upfront before doing any work.
- Pressure to sign documents quickly: Never sign documents you don't understand. A legitimate professional will give you time to review.
- "Sign over your deed": This is a classic scam. Never transfer your property title to someone who promises to save your home.
- Told to stop communicating with your lender: Legitimate professionals help you communicate with your lender, not avoid them.
When in doubt, verify credentials. Check realtor licenses at the California DRE website. Check attorney bar status at the State Bar of California. Verify HUD-approved agencies at CFPB's counselor search.
Frequently Asked Questions
Let's Talk About Your Situation
Every foreclosure is different. Whether you need a realtor, attorney, HUD counselor, or some combination, the first step is understanding your options. I'm happy to talk through your situation and help you figure out the best path forward.
(213) 444-2225 • Confidential. No pressure. No judgment.
