How Can I Stop Foreclosure Of A Home Scheduled To Foreclose In One Week?

If your home is in foreclosure and is scheduled to be sold at auction in one week, you'll need to act fast and be very aware of what you're doing. Hiring a professional to help you negotiate would be very beneficial. You'll want to keep accurate records of all paperwork sent or received, and take good notes on all phone calls and meetings with anyone relating to your foreclosure.

A foreclosure occurs when you fail to make payments on your mortgage for usually somewhere between three and six months depending on the lender. The foreclosure process begins when the lending institution has a trustee file a Notice of Default with the county office in the county where the property is located. This puts you on notice that you are facing foreclosure, and starts a reinstatement period where you can cancel the foreclosure and things can get back to normal.

If the loan is not brought current within 3 months, the lending institution or bank will file a Notice of Sale with the county and in a local paper, notifying you and the public that when and where your home will be sold at auction. Even at this point, you still have options.

You, or an agent negotiating on your behalf, can do one of several things.

For one, you can borrow enough money on a new mortgage to pay off the debts from the old mortgage, including any legal or other fees. Normally, if you have enough equity in your home, bad credit will not prevent you from getting a loan, but do your research thoroughly.

You may also attempt a forbearance, which means in exchange for money or some other action you perform(such as repairs on the home, listing it with a realtor, or something else agreed upon by both parties), the lender will cease any legal action.

In a friendly foreclosure, a third party or the lender purchases the home to clean the title of all lien holders, and then sells it back to the debtor or a predetermined third party.

You may also negotiate to modify your loan temporarily to allow you to get back on track, usually lowering monthly payments, interest rates, or changing other terms until things are back to normal.

Sometimes a lender may be willing to work out a repayment plan with you, in which case the past due debt is figured into a predetermined number of future payments until the amount is paid off. You can expect to pay half of the arrearage(the past due payments) plus all legal and foreclosure fees upfront in this situation.

Other options may be available as well as every situation is a little different. Check your local laws and talk to a professional in your state to go through all your options.