Stop Foreclosure Sale in Its Tracks

Published by julia | Filed under Buyer / Seller Tips, Miscellaneous, Real Estate, Shout Outs

Even if your house is severely in arrears in payments and it is about to go on the auction block, you can still stop foreclosure sale in its tracks if you know just what to do. Most people think that as soon as the bank hands them a notice of lis pendens (the intent to file a foreclosure lawsuit) that they must get out of their house immediately. This is definitely NOT true. The lis pendens only means the bank is informing you it intends to start foreclosure proceedings. It does not mean the bank now owns your home. You are still the owner up until the moment the house is sold at auction. Up until then, you can still stop the sale.

Here are two main ways you can stop foreclosure sale on your house:

1.  Pay off all of the arrears and become current on your mortgage. You must do this before the sale date, and you need to do it with your bank’s permission. Many mortgages have a clause in them that states that if you get behind to a certain point, then you owe the total amount on the house. However, banks don’t really want to take possession of your house, as this is a real hassle for them. If you have the money to pay off your late payments and charges, the bank will usually accept that and allow you to keep your home.

2.  Sell your house before the bank does. Again, YOU are the owner of the house up until the auction takes place. If you can sell your house for at least what you owe on it before then, even if it is just a day before the auction, you can still stop the foreclosure from taking place. It will show up on your credit report as you being very late on your mortgage, but that’s much better than a foreclosure showing up there.

So, you see, you can stop foreclosure sale in its tracks if you know what to do. Don’t just sit back and let the bank take your home. Fight back and create a little victory for yourself.

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