Having your home foreclosed on can be difficult and scary. Any financial catastrophe often leaves the person feeling humiliated and overwhelmed. Those emotional components can sometimes make people hide from the issue rather than act early on.
If you’re currently in danger of foreclosure, the first thing you want to do is research all the information you can. Acting now could help you get out of the situation before it’s too late to stop foreclosure.
It’s better to know your financial picture and your options than to wait for a foreclosure to set in. Realize, too, that anyone can run into bad luck or find themselves in the same situation. Now it’s time to look at the concrete steps you need to take to move forward and learn how to get out of foreclosure.
The Foreclosure Timeline
In general, you’ll have about 120 days after your first missed mortgage payment before foreclosure starts. This time allows you to save money to get caught up on payments or explore other options. If you apply for loss mitigation before reaching 120 days, you may be able to delay foreclosure even further.
In some cases, a lender or servicer will send you a breach letter before foreclosure begins. The letter will notify you that your mortgage loan is in default, explain why the default happened and how you can remedy the situation, such as catching up on payments. The letter will also include a timeline, such as 30 days, to cure the default.
If you fail to catch up on payments and make it past the 120-day mark, you might be sent a pre-foreclosure notice from the lender or servicer, but this varies based on state law. Once 120 days have passed, the foreclosure process will begin.
So, can you save a house in foreclosure once the process starts? In most cases, filing for bankruptcy can stop a foreclosure, providing that you’re still the property owner. However, this timeline varies by state.
State by State Information on When It’s Too Late to Stop Foreclosure
Laws differ by state. It doesn’t help you to hear rumors or listen to people who have second or third-hand experiences with the process. First of all, they might have the facts wrong. Second, their lender may have a different set of rules than yours. It’s best to do your own research in your unique situation.
In some states, there’s judiciary foreclosure, which means that the case needs to go before a judge before the property is officially no longer yours. Other states have nonjudicial laws, making the process go much faster for the lender.
Here are a few examples:
- Texas: Texas allows for nonjudicial foreclosure. This means that the lenders can foreclose fairly quickly, in some cases in as little as 60 days. The lender sends a notice of default 20 days after the payment is past due.
- California: In California, you can bring the loan current. You have up until five days before the sale to pay all the back mortgage payments and any fees. Within the last five days, you still have the right to pay off the entire mortgage, but it’s up to the lender whether they will accept back payments to keep you current at that point.
- Arizona: The law here allows borrowers to pay the balance of their missed payments and any fees to get current up until the last business day before the sale.
It’s crucial that you look up the laws in your state to know what your timeline is and how much money you’ll need to stop the process. If you don’t understand the information or need help, consult with a lawyer as soon as possible.
Can You Stop a Foreclosure?
Once the process begins, can a foreclosure be stopped?
You’ll have a date for the foreclosure sale at the start, which will occur at the end of the process. The home will be sold to the highest bidder to recoup as much money as possible that the servicer initially lent to the borrower. Once the sale is finalized, you generally won’t be able to reverse the foreclosure.
However, delaying foreclosure proceedings or stopping the sale before the finalized deal can help you save your home.
How to Stop a Foreclosure
There are a few ways you can stop or delay foreclosure proceedings. The best method will depend on what you’re trying to accomplish. For instance, if you want to keep the home and your credit intact, working with the lender may be the best way to go if possible.
Here are some options:
- Chapter 13 Bankruptcy: A Chapter 13 bankruptcy will allow you to restructure your debt and keep your home. Filing for bankruptcy will also halt the foreclosure proceedings.
- Chapter 7 Bankruptcy: Chapter 7 bankruptcy will also halt foreclosure proceedings, but it’s just a method to stall for time. If you don’t intend to keep the home but need a few months of breathing room, you would choose this method.
- Loan Modification: Working directly with the lender to modify the loan is a good option if you can afford to start making payments immediately.
There are various other options to help you get out from underneath foreclosure, which you should carefully research to determine if any of them are right for you.
The Best Way to Stop Foreclosure May Be to Sell the Property As-Is
If foreclosure is a growing concern, quickly selling your home can mean the difference between losing it to the bank and walking away on your terms.
A professional home buyer can buy your property as-is in the first stage of foreclosure proceedings. You don’t have to worry about making repairs or upgrades to sell your home. The home buyer will handle all renovations once the deal has closed.
One of the main benefits of working with a professional home buyer is how quickly they can close the deal. Once foreclosure proceedings start, the process can move fast, and you might lose your home to the bank sooner than you think.
As soon as a professional home buyer makes an offer, you can close the deal on your schedule, sometimes as soon as seven days.
Rather than letting the bank repossess your home, you can sell your property as-is and use the cash to find a new home.
Sell As-Is With HomeGo
HomeGo is a professional home buying company, and we purchase homes in pre-foreclosure, regardless of their condition. We also offer leaseback programs if you need extra time to move. You can stay in your home after the deal has closed and move out on your schedule.
At HomeGo, we make the selling process as simple as possible. We’ll conduct a short walk-through of the property, discussing the process with you as we go. We can give you an offer on the same day, and you never have to worry about our offer changing before the process. There are no hidden fees, so you trust that our offer is the best from the start.
Our agents can help you sell your home, despite being in foreclosure. Our vast knowledge and the real estate world allows us to help you maneuver challenging situations with ease. Contact us today if you’re interested in selling your property before it’s too late to stop foreclosure.