When a foreclosure is a real possibility for you and your family, it is important that you take action quickly if you want to keep the home. Some actions will only temporarily stop the foreclosure to allow you time to explore other available options. Which option you choose to exercise depends on your situation:
File for Bankruptcy
A bankruptcy filing comes with several benefits, including an automatic stay. The stay basically puts a freeze on any actions your creditors can take until the court decides to life the stay. Even if your mortgage lender has already filed for foreclosure and your home is due to be sold in a few days, the stay will stop the sale.
If you are planning to go this route, it is important that you explore other actions for keeping your home also. The stay is only temporary. In fact, your mortgage lender could ask the court to remove the stay and allow it to proceed with the foreclosure. This can occur even if your bankruptcy has not been completed. You did a nice job with _____ in this article. However, articles that take a new angle or offer unique information are inherently more useful and interesting. You may want to try some of the resources suggested in the third ideation training at blog.writersdomain.net to help guide you in more unique directions.fda
As soon as you receive the stay, you should consider asking for a loan modification from your lender or file a lawsuit to stop the foreclosure process altogether.
Request a Loan Modification
A loan modification application should be submitted to your lender as soon as you fall behind on your payments. The modification is available regardless of whether you have filed for bankruptcy or not. When you submit your application for modification to the lender and it is approved, you will not have to worry about foreclosure again as long as you make the agreed payments.
The modification can result in lower monthly payments, a decreased interest rate, or the removal of some of your arrears. Ultimately, the lender will decide the new terms for the new loan agreement.
File a Lawsuit
One of your final options is to file a lawsuit against your lender. This is a viable option if your lender did not have the right to file a foreclosure in the first place. For instance, if the lender did not follow your state's foreclosure process, you can argue this is grounds to stop the process.
If the court agrees with you, this could potentially stop the process permanently. However, the lender could decide to restart the process from the beginning. This would buy you time to make an arrangement to catch up on your payments.
Consult with a real estate attorney as soon as the possibly that you could face a foreclosure arises. He or she can help you explore even more options that could be available to you.Share