Most homeowners believe that when they receive a letter from the lenders about foreclosure, all hope is lost, and they have no choice than to lose their homes. Some homeowners go as far as vacating their homes as soon as the lender’s file for foreclosure. Mortgage Audit Online tells you that all hope is not lost and that you can postpone or stop the foreclosure sale date. If you forfeit your mortgage payments and find yourself facing imminent foreclosure, you may be able to save your home.
If your foreclosure sale date has been set, you can stop the foreclosure sale date by filing for bankruptcy. Once you file for bankruptcy, the law prevents the lender from continuing collection activities. In this case, the foreclosure process is considered as collection activity, meaning that when the lender becomes aware of the bankruptcy petition, the foreclosure process is frozen. The lender may try to file a motion to ask the court to proceed with the foreclosure process. But even in this case, the foreclosure sale date will be delayed in which case you can get an alternative.
You may be able to stop the foreclosure sale date by applying for loss mitigation. The law mandates that if homeowners send the servicer a complete loss mitigation application more than 27 days before the sale date, the servicer is not allowed to ask for judgment from the court or conduct a foreclosure sale, unless. Applying for loss mitigation may not give you extra time unless you work out a loan modification.
If you owe the lender more than the current value of the house, a short sale is a good choice. Even if you are at the pre-foreclosure stage, you can sell your house. Before the lender schedules an auction and after they have filed a NOD, if you find a buyer, the lender should consider it. In case of a foreclosure, the lender will turn and sell it; if you issue them a short sale offer, they may look at it as saving effort, time, and trouble of getting a good buyer in a soft market.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.