Foreclosure Stop

Most people are under the impression that once a foreclosure starts it can not be stopped. That can not be further from the truth. I call this “The Foreclosure Stop Approach”.

There are several techniques to stopping a foreclosure. Here are seven things you can do to execute the “Foreclosure Stop” approach.

First, there is negotiating with your lender. The typical response from a homeowner when faced with not being able to pay the mortgage is to not anwer the telephone. This technique however is never a good strategy. Lenders rarely cooperate with borrowers who contact them on the eve of a foreclosure sale. Respond to all calls, letters and emails. It is also important to make sure you are dealing with your “current” lender nad negotiate with a spirit of cooperation while talking the lenders language. Bone up on various negotiation strategies.

Second, you can refinance out of your current mortgage. You may not be in the position to affect a typical refinance as your home may be too “Upside Down”.  Other questions you may want to ask if you are considering a refinance is; Should you use a Mortgage Broker?; Will you qualify for refinancing?; What kind of loan you should get?; Will the closing costs make it worth while? Make sure that you work with a Certified Mortgage planner to discuss your options.

Third, if you are in the military you might be able to use the “Soldiers’ Civil Act of 1940″ and the Service Members Civil Relief Act of 2003 (collectively called the SSCRA). The SSCRA is the protection of active military personnel and their families from foreclosure. The SSCRA can be used to stop a foreclosure, invalidate a foreclosure sale, or reduce your loan interest rate. You are going to want to find and attorney that thoroughly understands these Acts.

Fourth, you can use the courts to stop a nonjudicial foreclosure. The biggest question here is do you have grounds to go to court.  These generally fall into  two main categories. 1. Disputes over your state’s foreclosure procedures. 2. Disputes with your lender over the terms of your promissary note and/or deed of trust.

Fifth, you can file Bankruptcy.

Sixth, you can sell your property quickly to stop the foreclosure. If you owe more on your house than it is worth you will have to do what is known as a shortsale.

Seventh, You can give your lender a Deed In Lieu Of Foreclosure. This is essentially just signing the property back to a lender. There are many reasons why a lender would or would not do this, however this article is much to short to go into.

The bottom line is you do have several options to perform a “Foreclosure Stop“. The sooner you act the more options you will have. Learn more by attending the Sacramento Pre-Foreclosure Workshop.