Once The Bank Starts Foreclosure On Your House Is There Anyway To Avoid It And Get The House Back?
January 20th, 2010 - ByPosted in Avoid Foreclosure
Sure. I assume that the foreclosure sale hasn’t taken place yet. The first way to avoid a foreclosure is to talk to the bank. Most banks don’t want to foreclose, and will negotiate a forbearance or a new payment schedule if it is halfway reasonable and if they think you are willing and able to perform. Call the bank and offer to negotiate. Second, some states (e.g., California) have rules that allow you to cancel the foreclosure sale and reinstate the loan if you cure the default and pay the lender’s expenses at some time prior to the scheduled foreclosure sale. You did not say where you live, so I don’t know whether you live in a jurisdiction that has reinstatement rules. Call a lawyer on this one. Third, all states will cancel the foreclosure sale if you pay off the loan before the sale. This option is often unavailable, since you would not have defaulted if you had that kind of credit. I strongly recommend option #1.
6 Responses to “Once The Bank Starts Foreclosure On Your House Is There Anyway To Avoid It And Get The House Back?”
January 20th, 2010 at 3:59 pm
Until the officers forcibly remove you, a bankruptcy petition may at least delay matters a bit longer until your first hearing or meeting with the court’s trustee. Once you’re out of the house, there’s not much hope. And there’s no hope in court if the trustee finds that you have no ability to make payments, even with the court’s protection and the preparation of a 3 year payment plan, or with a plan following the possible discharge of some or all of your unsecured debt.
But the courts are often overwhelmed with case volume in times like these, so the filing could give you enough time to change your situation to where you could make payments with a reorganization plan. And it sounds like you have little to lose.
January 20th, 2010 at 7:21 pm
Try to get loan modification, or pay your past due payments, are two possible ways. Also, each state has its own rules about reclaiming your house after foreclosure auction. You can google search these, or talk with a real estate attorney.
If you think there is a chance you can get your past due payments together within 6 months or so, call the mortgage lender and ask for forebearance and a payment plan on the past due amount.
January 20th, 2010 at 9:02 pm
reinstatement of your loan
pay them the missed payments keep in mind most banks would rather have you pay them than go trough the hassle of trying to find a new buyer for the home
January 21st, 2010 at 3:58 am
Pay what you owe and they will stop.
January 21st, 2010 at 6:54 am
Challenge them: “Produce the note”. That’ll buy you some time—a lot of it.
January 21st, 2010 at 1:26 pm
yeah, pay what you owe them in past due payments
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