Nonprofit Alliance of Consumer Advocates and Consumer Defense Law Group Delivers $95,002 Reduction to Stop Foreclosure
LA CAñADA FLINTRIDGE, CA, UNITED STATES, February 13, 2026 /EINPresswire.com/ -- The Nonprofit Alliance of Consumer Advocates (N.A.C.A.), a nonprofit loss mitigation clinic committed to Homeownership Preservation and Affordable Housing, announced a major foreclosure prevention victory in partnership with Consumer Defense Law Group (CDLG), resulting in a permanent loan modification for a California homeowner that included a rare $95,002.00 principal balance reduction.
The case involved Mukhtiar Kamboj, homeowner at 201 Starlane Dr, La Canada Flintridge, CA 91011, who purchased the property on October 11, 1984. After decades of stable ownership, Kamboj suffered a severe medical crisis requiring hospitalization, creating overwhelming financial hardship that caused him to fall behind on his mortgage.
The first recorded default occurred on August 3, 2012, and over time, the foreclosure pressure escalated. The most recent Notice of Trustee Sale was recorded on August 22, 2024, placing the homeowner at serious risk of losing the property. By the time he was connected with N.A.C.A., Kamboj was delinquent a total of $258,329.00, a balance that would have been nearly impossible for most homeowners to recover from without intervention.
Kamboj was referred to Nonprofit Alliance of Consumer Advocates (N.A.C.A.) in August 2025, at which point the nonprofit immediately began its standard foreclosure prevention protocol. N.A.C.A. initiated direct outreach and workout discussions with the loan servicer in an attempt to secure an affordable resolution.
However, unlike servicer-owned loans—where loan modification decisions can sometimes be made internally—investor-owned loans often create an additional barrier. In many cases, servicers are required to follow rigid investor guidelines and are unable to approve the exceptions needed to create meaningful affordability. As a result, even borrowers who are capable of making payments can still be denied relief.
After continued negotiations, the loan servicer issued its final denial in October 2025, leaving Kamboj with limited options and a foreclosure timeline continuing forward.
Recognizing the urgency of the situation, N.A.C.A. immediately referred the matter to Consumer Defense Law Group (CDLG), widely recognized for its national track record in wrongful foreclosure litigation. CDLG filed Civil Case #25NNCV09065 against both the loan servicer and the owner of the loan, naming the investor decision-maker as a co-defendant. The litigation strategy was designed to interrupt the foreclosure path and force negotiations with the parties holding true authority over the loan.
The effort resulted in a major settlement outcome. On January 8, 2026, Kamboj received a permanent loan modification agreement featuring a fixed 4% interest rate and a principal balance reduction of $95,002.00, creating long-term affordability and preserving the homeowner’s ability to remain in the property. The first payment under the new agreement is due March 1, 2026.
“Most homeowners don’t realize that the servicer is often not the true decision-maker,” said Attorney Tony Cara, founder of Consumer Defense Law Group. “When a loan is investor-owned, the borrower can be denied repeatedly until someone forces the real parties into the conversation. Litigation changes the leverage. In this case, it produced a fixed rate and a significant balance reduction that many borrowers are told can’t happen.”
“This is exactly why we built our model,” said N.A.C.A. leadership. “Our job is to do more than process paperwork. We advocate, we escalate, and we bring the right legal team to the table when investor guidelines block fair outcomes. This case represents Homeownership Preservation and Affordable Housing in real life.”
In addition to its legal escalation strategy, N.A.C.A. is known for providing homeowners multiple layers of protection against foreclosure, using not only litigation support, but also real estate solutions, mortgage banking strategies, and even private investor intervention—ensuring that if one strategy falls short, alternative pathways remain available to preserve housing stability and prevent displacement.
For more information, visit www.TrusteeSaleReversals.org or call (855) NACA-HELP.
The case involved Mukhtiar Kamboj, homeowner at 201 Starlane Dr, La Canada Flintridge, CA 91011, who purchased the property on October 11, 1984. After decades of stable ownership, Kamboj suffered a severe medical crisis requiring hospitalization, creating overwhelming financial hardship that caused him to fall behind on his mortgage.
The first recorded default occurred on August 3, 2012, and over time, the foreclosure pressure escalated. The most recent Notice of Trustee Sale was recorded on August 22, 2024, placing the homeowner at serious risk of losing the property. By the time he was connected with N.A.C.A., Kamboj was delinquent a total of $258,329.00, a balance that would have been nearly impossible for most homeowners to recover from without intervention.
Kamboj was referred to Nonprofit Alliance of Consumer Advocates (N.A.C.A.) in August 2025, at which point the nonprofit immediately began its standard foreclosure prevention protocol. N.A.C.A. initiated direct outreach and workout discussions with the loan servicer in an attempt to secure an affordable resolution.
However, unlike servicer-owned loans—where loan modification decisions can sometimes be made internally—investor-owned loans often create an additional barrier. In many cases, servicers are required to follow rigid investor guidelines and are unable to approve the exceptions needed to create meaningful affordability. As a result, even borrowers who are capable of making payments can still be denied relief.
After continued negotiations, the loan servicer issued its final denial in October 2025, leaving Kamboj with limited options and a foreclosure timeline continuing forward.
Recognizing the urgency of the situation, N.A.C.A. immediately referred the matter to Consumer Defense Law Group (CDLG), widely recognized for its national track record in wrongful foreclosure litigation. CDLG filed Civil Case #25NNCV09065 against both the loan servicer and the owner of the loan, naming the investor decision-maker as a co-defendant. The litigation strategy was designed to interrupt the foreclosure path and force negotiations with the parties holding true authority over the loan.
The effort resulted in a major settlement outcome. On January 8, 2026, Kamboj received a permanent loan modification agreement featuring a fixed 4% interest rate and a principal balance reduction of $95,002.00, creating long-term affordability and preserving the homeowner’s ability to remain in the property. The first payment under the new agreement is due March 1, 2026.
“Most homeowners don’t realize that the servicer is often not the true decision-maker,” said Attorney Tony Cara, founder of Consumer Defense Law Group. “When a loan is investor-owned, the borrower can be denied repeatedly until someone forces the real parties into the conversation. Litigation changes the leverage. In this case, it produced a fixed rate and a significant balance reduction that many borrowers are told can’t happen.”
“This is exactly why we built our model,” said N.A.C.A. leadership. “Our job is to do more than process paperwork. We advocate, we escalate, and we bring the right legal team to the table when investor guidelines block fair outcomes. This case represents Homeownership Preservation and Affordable Housing in real life.”
In addition to its legal escalation strategy, N.A.C.A. is known for providing homeowners multiple layers of protection against foreclosure, using not only litigation support, but also real estate solutions, mortgage banking strategies, and even private investor intervention—ensuring that if one strategy falls short, alternative pathways remain available to preserve housing stability and prevent displacement.
For more information, visit www.TrusteeSaleReversals.org or call (855) NACA-HELP.
J. De La Vega
NonProfit Alliance of Consumer Advocates
+1 855-622-2435
email us here
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