Do you know that once a foreclosure is filed, you have at least one option of stopping it?

A foreclosure is an outcome when the lender repossesses the mortgaged property when the homeowner defaults in payment. An essential aspect of the foreclosure process is the auction. The foreclosure auction mainly occurs at the end of the foreclosure process, after the lender completely repossesses the property. In this case, the lender markets the property to different buyers, and it is sold to the highest bid. Typically, a foreclosure auction works like this;

• The lender sets the auction date and time. The sale can take place in person or online.
• The lender sets an asking price for the property.
• Buyers bid online or in-person on the home.
• The Lender accepts the highest bidder, then closing is scheduled.

It is important to note that the closer the home gets to the foreclosure auction date, the more difficult it is for you to take the necessary action to prevent the sale!

Now that you have a better comprehension of how foreclosure works, there are several techniques you can adopt to stop foreclosure auction immediately.

1. Loan Modification- A Loan Modification is a change made by the Lender to your existing loan terms, as a result of non-payment.
2. Filing bankruptcy- The term bankruptcy refers to the courts offering someone the chance to start fresh by forgiving debts that are unable to be paid. In reality, bankruptcy may just buy you some more time, rather than completely let you off the hook for your debts.
3. Deed in Lieu- A deed in lieu is when your lender gives you the option to transfer the deed back to them voluntarily.

Refinance the loan with another lender to pay off your existing loan. Getting a loan takes longer than a week, but providing a pre-approval letter to your existing mortgage company might get them to agree to delay the auction while you pursue the new mortgage.