Can Foreclosure Be Stopped Once the Bank Initiated It?

by admin on September 13, 2010

Question:

Can Foreclosure Be Stopped Once the Bank Initiated It?

Answer:

When the bank initiates the foreclosure process, you can make ways in order to stop the foreclosure. The most common step that borrowers usually do when faced with foreclosure includes working out an agreement with the lender. You can ask your lender to give you some time to get the money needed and eventually pay your debt.

If you cannot really make your payments for the mortgage as well as the other bills that you have, you can file for a bankruptcy. You can also get the help from the banks and ask them to refinance your mortgage. In addition to these, you can also ask your lender to do a mortgage modification process. In this process, your current mortgage is modified or changed for it to become more affordable to you. You can also apply for a short sale where you can sell the property prior to foreclosure at an amount less than the fair market value.

In short sale, the lender agrees to receive the amount and then frees the borrower of his other financial obligations. If the foreclosure process was not stopped before the auction or sheriff’s sale, you can still make ways to keep your home. One thing you can do is to make an offer during the auction. Remember that when you make an offer, make sure that you already have the money. If you win the auction, then you can keep your home but if you don’t, you have no choice but to leave the property.

However, there are some states that offer redemption rights wherein the previous homeowner is given a duration of time after the auction to pay for the outstanding debt as well as the loan fees and interest. If you are able to pay the total amount, he can reacquire his home.

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