After The Foreclosure Process Starts And You Get Current, Does It Stop?
February 4th, 2010 - ByPosted in Stopping Foreclsoure
I think I will be going into foreclosure here in a few weeks, but I know that in about about a month I will have enough to “catch up” with my payments. If I “catch up”, does it still keep heading to foreclosure?
2 Responses to “After The Foreclosure Process Starts And You Get Current, Does It Stop?”
February 4th, 2010 at 3:39 pm
No, absolutely not. If you can make up the payments that you are behind, along with the extra interest, late fees, and other costs, then you won’t go into foreclosure.
The bank sues for foreclosure because you are in default of your agreement to make the mortgage payments. They sue to have the government sell the house out from under you to make good on your commitment to pay the loan or give them the property.
But if you aren’t in default any longer, then the bank has no reason to sue you. They aren’t suffering any damages, and you aren’t in breach of the contract if you pay them up to being current and they accept the money.
So, without you being behind on the mortgage, the bank can’t sue you to force the sheriff sale of the house to pay back the amounts that you are behind. Of course, that doesn’t stop fraudulent mortgage companies from doing exactly that, but that is not the majority of cases.
Good luck.
ForeclosureFish
February 4th, 2010 at 8:30 pm
I believe that you should have a right of redemption–all states allow for you to redeem the property before foreclosure and most states also allow for redemption after foreclosure for a certain amount of time (6 mos/1 yr).
Keep in mind, though, that in order to do either of the above you’ll have to pay off the entire mortgage debt (plus interest for the payments that are behind). If you were able to do that, you’d get the property free of the mortgage debt.
It is my understanding that simply paying what you’re behind (and not ALL of the mortgage debt), does not entitle you to prevent the foreclosure.
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