Can you fight foreclosure?

Can you fight foreclosure?

If the bank (or the servicer on the bank's behalf) skips a step, you might able to contest the foreclosure. In a judicial foreclosure, the bank typically must: mail you a notice called a "breach letter" telling you that foreclosure proceedings will soon be started in court if you don't reinstate the loan.

Why do foreclosure auctions get postponed?

A foreclosure auction is postponed because the bank expects to make more money in the future than today. This can happen when real estate prices are rapidly rising. In this case, the current owner has a higher probability of being able to sell the property and pay off the loan.

How long can you live in a house without paying mortgage?

The amount of time between the beginning of the foreclosure and the home auction vary widely from state to state. During this time you can typically stay in your home without paying the mortgage anywhere from two months to up to a year.

Can the bank come after your assets when you foreclose?

Most states have a law that allows a lender to go after a borrower for a deficiency—that is, the amount that the foreclosure sale proceeds fall short of the total mortgage debt—following a foreclosure.

What to do if you are facing foreclosure?

If you're facing foreclosure, you might be able to stop the process by filing for bankruptcy, applying for a loan modification, or filing a lawsuit. If you've fallen behind on your mortgage payments and a foreclosure sale is looming in the very near future, you might still be able to save your home.

Do I need a lawyer to stop foreclosure?

You don't necessarily have to hire a lawyer to handle the entire foreclosure process. You can simply pay for a consultation to get a little more legal guidance than a HUD counselor is able to give you.

How can I stop foreclosure without a lawyer?

You can apply for a mortgage modification during foreclosure without an attorney. You probably don't need an attorney to help you apply for a mortgage modification. A modification is a permanent change to the loan terms, such as an interest rate reduction, to make the monthly payments more affordable.

Can Chapter 7 save my home from foreclosure?

Chapter 7 bankruptcy will not, in the end, prevent a foreclosure on your home. But, once you file for Chapter 7 bankruptcy, the bankruptcy court will order an automatic stay, which will put a hold on the foreclosure while the bankruptcy case is pending.

Can the bank foreclose while in Chapter 13?

If you are in foreclosure when you file for Chapter 13, bankruptcy's automatic stay—the order that stops most creditors in their tracks—puts a hold on the foreclosure. If you stay current on your mortgage payments and make up the arrears through your Chapter 13 plan, the lender cannot foreclose.

What happens when your house is auctioned?

Typically, the lender starts the bid for the amount owed on the property plus any foreclosure fees. At the auction, the property goes to the highest bidder. After the bidding ends, the new homeowner gets the trustee's deed as proof of ownership to the property.

What is a motion to stay foreclosure?

A lender can file a motion asking the bankruptcy court to lift the automatic stay (terminate it) and allow it to proceed with foreclosure. You are entitled to file a response, and if you oppose the motion, the bankruptcy court will hold a hearing before it rules on whether or not to lift the stay.

What is imminent foreclosure?

Defaulting on a mortgage loan is a serious matter, and can lead to foreclosure on your property. … A technical term in the mortgage industry, imminent default describes a state where a borrower has not yet defaulted on a mortgage loan but is extremely likely to do so based on changes to their financial situation.

How long before the bank will foreclose after Chapter 7 is filed?

A Chapter 7 bankruptcy takes about three to four months (sometimes longer) from the date of filing to the date of discharge (cancellation) of your debts. Unless the judge gives the lender permission, no foreclosure sale can take place during that time.

Does legal aid help with foreclosure?

Get Assistance From a Legal Aid Society or a Foreclosure Prevention Clinic. A legal aid office might be able to help you for free if you qualify financially. Most states have legal aid programs for low-income individuals who need assistance.

How can I avoid foreclosure?

Tenants can legally live in foreclosed homes for a period of time after the bank forecloses on the landlord. … In California, tenants may continue renting for 90 days or until their leases expire, according to the Los Angeles County Department of Consumer Affairs.