How You Can Stop a Foreclosure Auction Immediately?


If you have fallen behind on your mortgage payments, and foreclosure is likely to take place in a few days time, you still have some options that can stop it. One of the most viable options is to apply for a grant to pay off the delinquent debt or to ask your bank for the loan modification. You are also free to file for the bankruptcy or sue the lender as a last-minute effort to save your home and stop a foreclosure auction immediately.

How to pay delinquent mortgage payments to stop a foreclosure auction immediately?
As per the law, the homeowner has a time of until five days before the auction sale to pay the mortgage amounts to stop the foreclosure.State funding is available to help the people who have suffered financial hardships to keep their home. Mortgage reinstatement assistance program is available for the homeowners, it is administered by the Keep your Home California. Homeowners must seek mortgage payment assistance immediately if the foreclosure sale is looming and talk to the bank if they can postpone the sale.

Homeowners must apply for the loan modification

If you didn’t know about loan modification option, let us tell you, it is a procedure that stops a foreclosure auction immediately for a while. When you submit the application, lender reviews it and decides whether they should arrange mortgage workout with you. If the application is approved, it will stop the foreclosure permanently as long as you keep up the with the loan modification plan. In case, the lender denies your application, you have sometime to arrange for the money.

Bankruptcy

Filing for Chapter 13 bankruptcy stops the foreclosure completely. The lender cannot foreclose the property once bankruptcy has been filed. Chapter 13 bankruptcy is a reorganization bankruptcy, it allows you to keep your home and pay some or all of your debts within a specific period of time. There are chances that some debt balances are eliminated so you can make a fresh financial start. It will have one negative effect, and this is it will hamper your credit score.

File a lawsuit

If nothing seems to help you can file a lawsuit against the lender. It will automatically stop a foreclosure auction immediately till the time you present yourself in the court. Once the foreclosure is delayed, you can work out a plan to repay the money so that you can save your home. When you file a lawsuit, you will have to show that the lender did something wrong, they missed a critical step while connecting with you. File for a lawsuit only and only if you are sure the lender made a mistake, because if you lose the case, you could get stuck paying your dues as well as the lender’s legal costs.


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