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Can I Stop A Foreclosure By Paying The Past Due Amount?

Can I Stop A Foreclosure By Paying The Past Due Amount

With foreclosures at high record, house owners are eager to know how to stop their homes from being foreclosed. Making past payment is an option, but the question remains, can it stop foreclosure?

The answer is yes.

When the owner of a house cannot pay the debts, it leads to foreclosure. Of course, there are specific procedures before it happens. The steps are part of pre-foreclosure. The owners cannot meet their mortgage payment requirements and after 3 months, they might lose their homes through a process known as foreclosure. Due to some reasons, the owners cannot maintain their home loans payment to be paid on time. And if they cannot meet their mortgage debts for some months, it leads to foreclosure. House owners will try many ways to avoid foreclosure they are faced with it. A man wants to prevent the trial of foreclosure, and there are many classes, courses, and lessons that will teach someone how to avoid foreclosure and get back on the right back. The investors can contact house owners that are facing foreclosure directly. Sometimes the lenders contact them too. However, even though they offer them help, it won’t be free and might require money to procure. Many scam artists present themselves as experts. There are professional foreclosure lawyers who do unlawful activities, and they put the house owners in deep trouble. Many of them are now left without a home, and little money.

To stop foreclosure on your own, make up your payments. The lenders might favor the house owners by considering to delay the legal action. There are situations where lender might forgive your debt. This is called debt forgiveness. If you agree to repay the debt after missing a payment, the lender might give you a freedom. You have missed out on payments, and you can spread out the missed payments over a long period of time. You can change the terms of your loan. If the mortgage is in the form of an adjustable credit, there is an option to stop the interest rate, to be exercised by the lender. The interest rate can be adjusted to be more manageable for you. There are individual government loans who stick to specific criteria to get another loan and to back the missed payments. This is known as partial claim. You can also do all these on your own and get rid of the liabilities of foreclosure. There is also the option of refinancing. You can interview real estate agents and get an idea of the market value. If your home is priced and it’s less than the amount you are owing, you might opt in for short sale.

Making partial loan payment while in foreclosure is what house owners ask about, usually both couples became unemployed. Before they are employed again, they can still make partial payment, because they frequently have just one source of income. Typically, as soon as they started working again, they will be handle the previous loan payment, even have some left over to make little additional payment. These house owners call their lender to explain the issue, and they are met without a sympathy and a resounding NO, for an answer.

So what will house owners do to make sure they do not lose their home to foreclosure? Years back, lenders would not compromise and help the house owners. Today’s mortgage and real estate markets, they have become somehow flexible. The first option is to request a loan modification. The mortgage would be modified in one way or the other, either by extending the payments and adding the past due amount at end or by increasing the monthly payments by a minimal amount from each month till the end of the loan. If the lender is not cooperative, another option is to have friends or family members to give you a loan until you are right back on your feet. These people will be your fiercest critics and they will tell you what you shouldn’t have done. However, bite your tongue and offer them a second mortgage, so that they know they will get their money back. Even using credit card advances could work if you take time to make sure that your future cash flow will cover your living expenses and your new credit card payments. Using credit card funds to pay your mortgage is a desperate measure, and before you do it, make sure you will have enough income to make it work, otherwise, you could be looking at second mortgage on a credit card that has a 33% interest rate if you pay late work on an exit strategy to get the cards paid off first and always on time. Put “Where is the money coming from”?

Let’s face it. Most people going through foreclosure do not contact their lender until it’s too late. For some reasons, they believe the problem it will somehow disappear. Unfortunately, by the time the house owner respond to the foreclosure notices, they are several months behind the mortgage payments. Most banks will not refinance the house owners if they are not available on their existing mortgage, which doesn’t make refinancing a viable solution. There is no magical solution to stopping foreclosure. It is a difficult thing to do, especially if the house owner does not have the money to make the mortgage payment. Unfortunately, when it comes to stopping foreclosure, mortgage brokers will say exactly what they want to hear and enough has already been wasted, which house owner does not need. Depending on state laws and lender, the house owner has approximately 6 to 8 months from their last payment until they lose their home in a foreclosure sale.

One may ask, why would a mortgage broker waste house owner’s time if they know they won’t be able to make the mortgage payments? Isn’t their payment history reported to the credit bureaus? And don’t they request for copy of their credit report? The answer to all the question is Yes. However, the simple truth is that lots of mortgage companies are only looking to collect applications. Some, not all, are graded based on the number of leads they generate within the given month. Regardless of the result, the house owner would be considered a point, which also look favorably to the management. And unfortunately for some house owner, by the time they are done, a month or two has gone, hoping for something that would never happen. In some cases, these same mortgage companies will collect upfront fees, knowing the house owner won’t be approved. They will pretend to work on the file once the payment is received, only to reject the application soon afterward. Again, they will say whatever the house owner wants to hear, thus, taking advantage of their desperate situation while earning at the same time.
Well then, who can make past due amount as a way to avoid foreclosure? Normally speaking, no one unless the house owner acts fast before they are several months behind in mortgage payments and have sufficient income to pay the new loan. The closer the house owner gets to the foreclosure date, the less likely the lender will work with them, and the chances of refinancing reduce greatly. Though making up payment for past due amount can save you from foreclosure, but you have to be effective in these 4 steps listed below:

Step 1

The first step is the ability of the house owners to stay up to date with what is currently happening, and they should not believe everything their lenders tell them about the foreclosure measures neither should they find everything their foreclosure consultant tell them. I mean, there are lots of resources that you can take advantage of, to at least understand what your rights as a house owner are in foreclosure measures. One of this resources is the internet, you can quickly become a member of foreclosure related forums, where you can get honest views concerning foreclosure proceedings and the options available to the house owner to either stop foreclosure in process or avoid it.

Step 2

Has the foreclosure proceeding started yet? Or is it going to start in the predictable future? Well, whatsoever the case maybe, we know that we aim for is to keep our home and bid foreclosure goodbye. This, you stand a chance, if you take action now or start working on it. This is not a time to panic but a time to seek possible foreclosure escaping options.

Step 3

Yes, we have agreed to take action, but the question now is, what attitude should we portray during these proceedings? Well, without doubt, the adoption of a positive attitude will go a long way in helping you achieve your foreclosure avoidance desires. No matter how big your lender corporation is, your positives attitude towards a favorable outcome will be of immense help.

Step 4

Do not lose your calm over what is happening, the foreclosure proceeding period can be difficult for some house owners. The feeling of doubt can drive you to make decisions that might have adverse effects. More often, you will find yourself running to foreclosure consultants who may turn out to be absolute scams. While I’m not saying you should not seek help from any foreclosure consultant either online or offline, I’ll advise you maintain a calm frame of mind so as to enable you to carefully weigh all the options presented to you by your consultant and carefully take the best decision in any particular stage of the foreclosure proceeding.

Sure, talking to your lender can be scary. But, nothing is more terrifying than losing your home for good. Lenders are willing to work with you before you lose your home, but you have to be ready to work out loan modifications for foreclosure. That’s the only way to save your home from foreclosure. Are you late with payment? Now you know what to do. The sooner you speak with your lender, the quicker you will be able to arrange a repayment loan. You do not have to lose your home to foreclosure. No matter what your current financial situation might be, there’s always a way to work it out with your lender.

Foreclosure Lawyer Free Consultation

When you need legal help with a foreclosure in Utah, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States

Telephone: (801) 676-5506

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Michael Anderson

About the Author

People who want a lot of Bull go to a Butcher. People who want results navigating a complex legal field go to a Lawyer that they can trust. That’s where I come in. I am Michael Anderson, an Attorney in the Salt Lake area focusing on the needs of the Average Joe wanting a better life for him and his family. I’m the Lawyer you can trust. I grew up in Utah and love it here. I am a Father to three, a Husband to one, and an Entrepreneur. I understand the feelings of joy each of those roles bring, and I understand the feeling of disappointment, fear, and regret when things go wrong. I attended the University of Utah where I received a B.A. degree in 2010 and a J.D. in 2014. I have focused my practice in Wills, Trusts, Real Estate, and Business Law. I love the thrill of helping clients secure their future, leaving a real legacy to their children. Unfortunately when problems arise with families. I also practice Family Law, with a focus on keeping relationships between the soon to be Ex’s civil for the benefit of their children and allowing both to walk away quickly with their heads held high. Before you worry too much about losing everything that you have worked for, before you permit yourself to be bullied by your soon to be ex, before you shed one more tear in silence, call me. I’m the Lawyer you can trust.