Can You Stop Foreclosure Once It Starts?

Can You Stop Foreclosure Once It Starts

The biggest thing when facing foreclosure is knowing what to do. Many people are in an economic crunch with loss of job and income. The loss seems to be causing many other problems and the biggest problem occurs when you’re faced with foreclosure. When you’re faced with foreclosure, there are steps that you should take before you’re evicted. You might be able to save your home if you act immediately.

Most people are afraid to challenge the banks and lending institutions. This is a big mistake because banks are now being challenged by the Attorney General of the state because of the fraud that they have done to process foreclosure on properties. Families are now getting a new face in government to help them face foreclosure. Getting home foreclosure help is easier than it has ever been in the past. The best thing to do when you’re faced with foreclosure is to use a foreclosure lawyer to help you. People have many questions when it comes to foreclosure concerning what to do to save their home.

The purpose behind this report is to help you decide which option is best for you when it comes to preventing the foreclosure process once it starts. The way to do is through information. You cannot have too much information when it comes to foreclosure process. The more you know, the better informed you are of your choices. You do not have to walk into the foreclosure process blindfolded, there are preventive measures that you can take. It is important that you know the options that are available to you. The options that you choose will depend on whether you want to keep your home or sell it. This report can give you some of the information regarding these choices. Before making a choice, however, you should talk with a loss mitigation specialist who is familiar with the foreclosure process and can analyse your case. After you read over the report, you should call or contact first foreclosure prevention so that you can get a free foreclosure evaluation that can weigh your options against your unique set of circumstances. Foreclosure is different, and it’s come with a unique set of circumstances. The main reason why people go into foreclosure is due to a loss of income. This can occur because of a loss of job, an illness or even a divorce. During troubled times, you must face the fact that you may lose your home, which is when you will act.

Time is not you friend when it comes to foreclosure. The minute your mortgage payment is more than 15 days late, you are assessed with a late charge. The calls begin after the loan is more than 30 days past due and do not stop. Lenders today do not want to foreclose but have no choice if you are not responding to them. They will most likely send you one letter before they file a Lis Pendens or a Notice of Default in the court of the country where your property is located. Then, everyone will know that you are going into foreclosure as this is public information. If you have already been through this process and received a notice, you are probably frustrated with calls and mail from those who say that they want to “help”.
Who do you trust? Bankruptcy lawyers will urge you to file bankruptcy, which should never, ever be the first option when it comes to stopping foreclosure and, in many cases, will not save your home. Some companies that they are loss mitigation companies will urge you towards a loan modification that they receive a fee for up front. There are 3 ways that you can stop foreclosure once it starts and keep your home. They include reinstalling your loan, refinancing your loan or declaring bankruptcy. These choices may or may not work for you. Let’s look at them and see how they stand up against each other.

Reinstalling your loan can consist of more choices. You may want to borrow from a third party and get your loan up to date. You can talk to your lender on how much you need to borrow to stop the foreclosure process and get your loan. Many times, the lender will ignore some of the late fees if you promise to catch up on your mortgage. In some states, there is no reinstatement available after the judgement has been entered and the date of the foreclosure sale is being set. Other states allow you a right to redeem your property even after the sale. This is something that your loss mitigation specialist can you help you understand. If you can reinstate your loan, there are several ways to do it. These include total reinstatement, a repayment loan, a loan modification, a forbearance and partial claim.

Total Reinstatement

To use this option, you must be able to make your loan current right away. This is usually done when you borrow from a third party. This option makes sense if you’re into foreclosure due to some problem with income, such as the loss of job, but are now back on your feet and financially okay to pay your mortgage. This option does not make sense if you are struggling to pay your mortgage as it is and can often get you deeper into debt.

Repayment Plan

Lenders will often tell you that to stop the foreclosure process, you must go for a total reinstatement. This is not true. Many lenders will accept a repayment loan if you are in a better financial state to repay the mortgage. The late mortgage payments can be spread throughout the other mortgage payments for up to 12 months, until you get caught up. If your lender is telling you that need a total reinstatement, you can use a loss mitigation services that will be able to succeed with your lender where you cannot. This is because you’re most likely not talking to the right party. This works well if you can make up the late payment with larger payments and you are not struggling to pay the mortgage.

Loan Modification

A loan modification plan can help stop foreclosure as this entails a loss mitigation company renegotiating the terms of your mortgage. Many loss mitigation companies steer clients in this direction because they get a fee upfront. This is a good option if you’re able to make the new payments are financially stable. This is not good option if you will be still struggling. It is also important to know that not every lender will accept a loan modification agreement and will proceed with the foreclosure.

Forbearance

You can suspend your mortgage payments for a short period of time by asking for forbearance. This will give you minimum time to get back on your feet, after which you can make your mortgage payment. This is a good option if you have lost your job and you’re optimistic about getting a new one that will enable you to pay your mortgage. This is not a good option if you just want to forestall the inevitable, although it can be a tool that comes in handy to remove foreclosure if you’re your selling your property. Loss mitigation specialists can help you with a forbearance and let you know if it right for you.

Partial Claim

You may or may not qualify for this program that is usually reserved for loans. You can pay about 30 percent of the late payment and the lender will work out a program with you so that you can repay existing late balance interest fee. This can be a good option if you will be assured of a better financial position and can repay the mortgage.

The biggest advantage of using one of the reinstatement programs to stop foreclosure is that you can keep your home. The biggest disadvantage is that many people tend to lose money when using these programs as they continue to struggle with foreclosure, fall deeper into debt and end up losing their home anyway. These options will only work if you can be sure of being able to pay at least 75 percent of your current mortgage payment. If you have no equity in your home or very little, you may want to talk to your loss mitigation specialist about a workout agreement where the lender will take less for the home than what is owed in event of a sale. You need to have a professional loss mitigation specialist working with you when you choose this option so that your rights are protected. This can be option for you if do not qualify for a sale to an investor or owe a lot more on the property. It takes a great deal of negotiation to get the workout agreement to the point where it gives you benefit. For many people, this is not an option but for some especially those who have property in a state of disrepair that prevents them from selling with a real estate agent, this can be the only option.

When you’re facing foreclosure, you do not have to feel helpless. There are many options open to you to help you stop foreclosure from happening to you regarding keeping your home and selling it. When you you’re facing foreclosure, you should talk to a loss mitigation specialist that can give you a free evaluation based upon your set of circumstances and further explain how the foreclosure process works, how it can be prevented and what impact it can have on your credit. You do not have to feel helpless in the face of foreclosure. Help is available and whether you wish to keep your home, or you just want to sell it and get a fresh start, loss mitigation specialists can help you find the right option that will work for you.
You’ve made the first move towards helping yourself avoid the foreclosure process in getting this report. Make the next move and contact foreclosure specialist, so that you can get a free foreclosure evaluation of your situation and find out the right next step that you can take to prevent foreclosure from happening to you.

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

Ascent Law LLC

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