How to Stop a Foreclosure Sale

writersgeekinc By writersgeekinc, 28th Nov 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/qn3k_dz5/
Posted in Wikinut>Guides>Property & Real Estate>Mortgages & Finance

This Article is about How to Stop a Foreclosure Sale

How to Stop a Foreclosure Sale

The last word that any homeowner wants to hear is foreclosure. Some homeowners just become irresponsible and that's what leads this to happen. Most, however, do try their very best to make their mortgage payments and just fall behind no matter how hard they try. You can stop your home from being foreclosed and auctioned off to the highest bidder, and the following are several ways you can do this.

Rectifying Default Early

This is the first step in the process that leads to foreclosure. Default happens when you get behind in your payments. If you get a handle on this early, you can stop the situation from getting worse. Quick communication is the best way to handle this.

Communication

This cannot be stressed enough, and communicating with your lender is extremely important if you end up missing a payment. Talk to them and let them know why and how this happened. Don't expect them to contact you and say that you're in default. A proactive approach is best. Perhaps your lender will be willing to work with you and suggest options to get you out of default. If you reach some sort of agreement, get it in writing and hold up your end. If they don't hold up theirs, it's in writing and should the situation end up in court, you're covered.

Deadline Awareness

How long it takes to go from default to foreclosure auction depends on which state you're in. Know your state's deadlines for this and don't procrastinate for any reason. Again, keep in contact with your lender to know if a public sale has been scheduled and when. Ask what you can do to stop this from happening and how long you have to do that. If your state does foreclosures through the court system, you may be appearing before a judge. Make sure you have an attorney with you so you are properly represented. In these cases, it is up to the judge if and when your home is auctioned off.

Ways to Stop Foreclosure While in Default Stage

You don't have a lot you can do, but there are ways to get default halted and prevent foreclosure. Here are ways you can do this.

Check Your Finances- Money is often tight and that's not always your fault. However, you should look over your budget and figure out what you can cut to put towards your mortgage payments and getting them current. Perhaps you can get a second job or other source of income to get back on track.
Restructuring- Depending on your lender, you may be able to get your payments restructured so you don't go into foreclosure. This is the next line of defense when trying to keep your home. Lenders have to pay out big to stage an auction, so they may work with you.
Refinancing- Perhaps you can get your mortgage loan refinanced which can lower your monthly payments. If your lender isn't willing to do this, seek out another lender, but make sure everything is done before the sale happens or at least show you are trying and they may hold the sale.
Sell It Yourself- You may be able to sell your house yourself and pull off some money, provided that the value of the home is less than what you owe. At the very least, a foreclosure won't show up on your credit report.

These are only a few ways that you can stop a foreclosure auction from happening. Carefully weigh all your options before deciding your plan of action.

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