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Will a loan modification application stall foreclosure proceedings?
Wiki User
∙ 13y ago
I know of people who applied for the modification but all the while the mortgage company proceeded with the foreclosure. So, yes they still will foreclosure apparently. Its like one hand doesn't know what the other is doing. the individuals that I know had to file chapter 13 bankruptcy to stop the foreclosure sale from happening
Wiki User
∙ 13y ago
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If your house in foreclosure and is up for sale can it still be forclosed on by the lender?
Yes, the act of listing your home for sale will not stop or stall the foreclosure proceedings. Homes can be listed for sale for months and even years.
How can one beat foreclosure?
You can't "beat" foreclosure. You can talk to the lender and try to work out some kind of repayment plan that will cause them to halt the foreclosure proceedings. You can also stall the process by filing for bankruptcy, but at the end of that you're still going to lose the house unless you've used the time to work out a deal with the lender.
Is a modification the best way to go to stop foreclosure?
The best way to stop a foreclosure is to honor the terms of the loan agreement. How you get to that point depends on many factors. A modification is a new loan agreement that superceeds and changes the original agreement and is designed for individuals with a long term material change in their financial situation that prohibits them from making scheduled loan payments. If an adjustable-rate mortgage adjusts to a point where the payments are not affordable, or a borrower suffers long term income reduction or loss, a modification of the interest rate or repayment term of the loan may save the home from foreclosure. It is an important tool and is one of the best ways to stop foreclosure. The key is that the modification must be beneficial to both the lender and the borrower. However, when some people use the term "stop foreclosure" they really mean "stall foreclosure". If a person finances a home that is beyond their reasonable means and they find themselves unable to make payment without unreasonable changes to the loan terms (such as principle balance reductions or 60 year repayment terms) then a foreclosure is often ultimately unavoidable. An unaffordable home is still an unaffordable home even if an interest rate is lowered or borrowers are given a chance to catch up on payments. While it is possible to get a balance reduction, it is very rare, and very long loan repayment terms are usually not allowed by law or regulation. In these cases, a modification request may extend the time it takes to foreclose (even lasting years), but the end result is still foreclosure. Bankruptcy filings also halt foreclosure proceedings and are used by many borrowers as a last resort to foreclosure.
How do you stall foreclosure?
You can stall a foreclosure. If you negotiate with the lender for a short sale, the lender may hold back on the foreclosure process to allow you to complete the short sale. You can also challenge the foreclosure process in court. If there are any irregularities in the foreclosure process initiated by the lender, the court can stall the foreclosure. You should ask the lender to produce the original note. Often the lender initiating the foreclosure is not the original lender. Most lenders sell the mortgage to other lenders and institutions. It is the subsequent lender who generally initiates the foreclosure. Often the subsequent lender may have problems producing the original note. Sometimes it can take months to produce the original note. Filing for bankruptcy also stalls the foreclosure. Negotiations with the lender can also buy you time. For an official opinion, it is advised you seek legal counsel.
Is it possible to stall foreclosure and how long can it be stalled for?
It is possible to stall foreclosure for up to two years using bankruptcy and a variety of other tactics. Getting what is called a Stay is a process of fighting back against the bank, and fighting for your right to stay in your home. Stalling foreclosure is not the simplest process but it can be done, and should be done if you are upside down in your mortgage, and thinking of filing bankruptcy. I have been going through foreclosure, and besides using an attorney, I found this book pretty helpful called the Stall Foreclosures E-Book. You can get this book, and read through it before you start the process to sort of give you a background on how to manage to stall foreclosure and stay in your home while fighting back. It is at www.StallForeclosures.com
Does a chapter 13 bankruptcy filing stall foreclosure?
Yes. It is the most common reason for filing a chapter 13.
Can lenders foreclose on mobile homes?
Yes, they certainly can. Best way to deal with this is to negotiate a settlement with them. You can often come to terms that stall foreclosure and maybe prevent it.
Is it possible to stop a bank foreclosure once it's started?
There is a process to appeal a bank foreclosure. Each bank is different and it can be a cumbersome undertaking. They will probably have you jump through many hoops. If you are looking to stall the foreclosure, it might be a good avenue for you to explore. Even if it buys you another week or two, that may be enough time to get your grandmothers' finances in order.
How can I get a bank to stop a foreclosure on a property?
With the country in the midst of this crisis, the bank doesn't really want to foreclose since they will then be stuck with another property. So try to modify your mortgage, or arrange a short sale, or apply for federal help. Filing chapter 13 is supposed to stall a foreclosure too.
Techniques to Stop Forclosure?
A foreclosure of your property is one of the most traumatic experiences you’ll ever have. All of the expense and work you’ve put into your home or place of business vanishes into thin air as your creditors take the proceeds from the sale of what you’ve worked so hard for. A bank can foreclose on your property and let it sit unattended for months or even years. You’re definitely the loser in a foreclosure. There are ways you can stop foreclosure. These tips for stopping the foreclosing process can buy you the extra time you need. Contact your creditors as soon as you begin experiencing financial problems. If you suspect that the financial difficulties you have could possibly lead to a foreclosure you should notify the creditors immediately. Most creditors understand that if they force you into bankruptcy and a resulting foreclosure that they will only receive pennies on the dollar for the debts you owe. They know that working with you concerning payments makes the most sense from a business perspective. Negotiate lower payments or the defrayment of payments altogether until you can get back on your feet financially. Consolidation loans are another way to stop foreclosure proceedings. Accumulating a variety of debts such as a mortgage, credit cards and personal loans into one loan can ease the confusion and result in a single payment that will be lower than the sum total of the other payments. Hire an attorney. This may seem impossible considering the current status of your financial affairs but in the long run may actually save your home or business. An attorney that specializes in foreclosure law will defend your interests in lengthy court proceedings and allow you take advantage of laws that protect debtors from unfair collection practices. There are ways to stop foreclosure in its tracks. Foreclosing on property is traumatic and financially devastating. Use every legal tactic to stall or prevent foreclosure that is at your disposal. These time-proven methods can help to save the property you’ve worked so hard to buy.
What ways are there to avoid foreclosure?
There may be ways to stall it off, (and ways to speed it up), some as simple as how you respond to the mortgage co....but the bottom line is, unless you pay the loan fully, it is unavoidable that you will end up losing the house.
Consumer Alert - Advance Fees and Loan Modification Services If you are behind in your mortgage payments you may be contacted by individuals or companies that will offer to help you work out a loan?
Loan modification companies who ask for upfront fees or charge may be questionable. Best practice is to make an agreement of a service charge once the loan mod application is approved by creditor. There are many payment schemes for this but do not go for advance payments.######Another viewpoint by Gail Simmons:A little known fact is that banks and loan servicers hate working with loan modification companies and attorneys. You, as the homeowner, are your best advocate. You will fight the hardest to keep your home using a loan modification. You just need the right tools and strategies to overcome the stall tactics loan servicers like to use.You can check out the resources available at http://LoanModificationHomeownerResources.Org
