How to Postpone Your Sheriff Sale With or Without the Bank

One of the most justified concerns homeowners have about foreclosure is how long they have to save their homes. This is such an important issue that many homeowners simply give up their homes and move on long before their time is up. They just assume the sheriff will show up any day and throw them out! Unfortunately, this is a dangerous assumption, and owners often have more options than they might ever think possible to increase the time they have available.

In fact, it is reasonable to say that any homeowner can stop the foreclosure process at almost any time up to the date of the judicial sale. Of course, if that date is on the horizon or coming up in the next few weeks or months, then there is still some time left, but foreclosure victims need to get something organized pretty quickly. Stopping a sheriff’s sale is critical if there is a realistic plan to save the home and pay off the mortgage or restore payments. A judicial auction will nullify almost any plan that was in the works prior to the auction.

It is also important to note that the bank will not accept just a regular payment once the house is in foreclosure, nor will they accept any form of partial payment. The lender will most likely demand the full amount past due at this point, unless he or she is willing to work out some type of payment plan with the owner. This is one of the reasons that homeowners, as soon as they have recovered from a financial hardship, should call the lender to find out exactly what plans they can offer and how much money they will have to pay to start a plan.

But, if the bank won’t agree to a forbearance agreement or other plan, there are a few other ways to stop your foreclosure date that don’t involve direct intervention by the mortgage company. Sometimes homeowners need to take control of their home and take advantage of other opportunities.

First, homeowners can simply file Chapter 13 bankruptcy to avoid foreclosure. That puts all collection efforts by creditors (including collection attempts by the mortgage company) on hold while the court system deals with the debt. You can stop a judicial sale the day before the sale and it could work as a last ditch effort. Although it’s not the best way to stop foreclosure, homeowners should keep it in mind if they’re short on time. In many cases where the owners are running out of time, any other way to postpone the auction will not work.

Second, simply paying the full amount past due will reinstate the mortgage. It will bring the loan status back to “current” and end the foreclosure process. If there are no arrears, and no portion of the loan is delinquent, the bank cannot proceed with the foreclosure. Admittedly, this is also the most unlikely scenario presented here, mainly due to the bank’s unwillingness to find a solution and the fact that they typically add thousands of dollars in late fees, interest, court costs, and fees. total lawyers. amount needed to restore the loan. But if homeowners can come up with the money, they can save their home immediately.

Finally, going to court and asking the judge to order the lender to try to work something out is always a possible solution. However, very few homeowners take advantage of this opportunity, simply due to an (ir)rational fear of the legal system. But the judge can order the bank to consider a payment plan or offer some other rulings in addition to continuing the legal process of foreclosure on the home. The judge can also stop the sheriff’s sale, since he is the one who orders the sale in the first place. In fact, the judge wields an enormous amount of power over the bank, for some unknown reason, but the owners can use this power in self-defense, if necessary. Passing up on this option is a big mistake for homeowners trying to avoid foreclosure.

The bottom line is that foreclosure is never inevitable once it starts. To ensure they have the best chance of saving their home, foreclosure victims simply need to take advantage of the options available and make sure they can make the payments on time again, or come up with the money for restitution, or have plenty of time. to look into an option such as a foreclosure refinance or sale. Having a sheriff’s sale scheduled is obviously a major hurdle, but homeowners have more options than they think to gain the time necessary to work on a foreclosure solution.