You’re about to be in foreclosure and all you need is to buy some more time until you may get back on your feet again. Here are ten tactics you will be able to use to help delay the foreclosure process.
Call your lender to talk about your options – As soon as your lender is aware of your circumstances and feels that you are seriously seeking to work things out, they are less inclined to lower the foreclosure boom straight away. They’d rather work out a proposal than be stuck with a house. Especially one without equity.
Negotiate Forbearance – Forbearance is a repayment plan for making up back payments that you owe on the mortgage. This tactic works if you’re able to pay extra toward your back payments. If you can’t then you should seek a different solution.
Negotiate a Mortgage Modification – Since the lender made the mortgage, they can also rewrite it to reduce the monthly installments. Sometimes the lender can also roll the missed payments in to the new mortgage. This can also work as being a longer term solution.
File a demand to delay the Sherriff’s sale – In certain jurisdictions you are entitled to file a demand to delay the Sherriff’s sale. You might be able to buy 6-12 months, however the bank can file a deficiency judgment if the home doesn’t sell for the mortgage amount. Consult an attorney to see if it’s a possibility and what the ramifications are.
Court delays – One of the best ways to delay the court process is to demand a trial by jury if your jurisdiction allows it.
Challenge the process in court – There are various rules and regulations that govern the foreclosure process that your lender and their attorney has to follow. If they fail to follow these regulations, you’ll be able to point it out for the court and gain additional time. Challenges that you may search for are in the area of notification of foreclosure, redemption period, and forfeiture.
File for an adjournment – Adjournment is court language for delay. A legitimate excuse like you need time to gather certain documents or you are expecting something from the lender should work for the judge to grant an adjournment. They typically don’t like to grant adjournment for attempting to come up with money.
File for Bankruptcy – This is really not the desirable approach to take but will hold off your debtors temporarly until you might get back on your feet again. Chapter 13 reorganization will allow you to reorganize your debt and make it more affordable to you in the long term. Bear in mind bankruptcy stays on your record for quite a while.
Maximize the Redemption Period – The redemption period is the time frame the state gives you to get back your home. If your jurisdiction has a redemption period, you can possibly increase the time allotted by challenging the foreclosure process late during the redemption period. If the court rules in your favor, they might restart the clock for the redemption period.
Negotiate more time to move – Sometimes you are able to negotiate together with the investor/owner that purchased your property to delay the eviction. You can also show up at the eviction hearing to ask.
Remember when possible to work with a legal professional to help you with the ins and outs of foreclosure law. Any screw ups can cost you dearly.
Make sure to also check out my lens 10 Rules For Financial Success and my blog post Do You Make These Financial Mistakes?
