Stopping Foreclosure
I have read many times on this forum that foreclosure can be stopped within 24 hours. How exactly is this done? Is paying the loan current all that you have to do, or do you have to have some sort of agreement with the bank?
Paying off the loan can stop foreclosure. So can filing bankruptcy.
So, if I find a preforeclosure, will bringing the loan current automatically stop the foreclosure, or will I have to communicate with the bank beyond that?
Candace
Unless mandated by law, a lender will not likely want to reinstate a loan with so little time left before the auction. At this point, the loan has been accelerated and nothing short of paying the entire principal balance will do.
So, paying the entire loan balance (not just the amount in arrears) is the only thing sufficient to stop foreclosure. Only cash or certified funds will be accepted. However, filing bankruptcy will also postpone a foreclosure and can even be done the morning of the auction provided the auction hasn't yet taken place.
newcreation
Up to 7 days BEFORE the foreclosure sale is the cut off that I know most lenders will stop foreclosure if all the late payments, fees, etc is paid current. The lender will reinstate the loan.
Any time 6 days to the sale date lenders will not take the late payments ... the loan will have to be paid in full.
I do know of one lender Greenpointe (BOA on manufactured home on land) agreed to take $12,000 back owning on $17,500 with documentation that an escrow on another property was going to closed within 4 weeks. Greenpointe agreed in writing to postpone the sale by receiving the $12,000 and then the remaining $5,500 in 4 weeks.
Get every agreement with the lender in writing and overnight any money directly to the foreclosure department. Confirm the proper address to send documents and money !
Cheryl Lopez
I just wanted to post this in case anyone that is already is the foreclosure business is reading. I desperately need help with processingfiles for our clients here in Texas. We provide homeowners help by negotiating pre-foreclosure sales if they want to move, loan modification if they want and can afford to stay and can also find them a new home to move into with bad credit, zero down payment, etc with a company we work with. If ANYONE that already has experience doing that type of work is interested please reply directly to me. We will pay a flat fee when the file is completed. Thanks for your time!