What are your options when a bank has filed foreclosure on your residence?

Question

Can you just bring your loan up to date and have it restored? Does one have the right to owrk out a payment plan with the finacial institution? Can the payments be put on the end of your mortgage like in a forebearance case? If your house is sold by the bank do you get the difference between the loan and the equity present in the property? I owe @ $2500 on a 600k house in which my equity should be over 400k. Any suggestions?

Answer 1

you have 400k in equity, I would have been taking care of that, long before now........

Answer 2

With all the equity you have you should have already sought a method to refinance the house and pull some equity out to get your finances straight. You basically can stop the foreclosure by filing a chapter thirteen bankruptcy, which will permit you to reorgainize yourself financially and so long as you can prove to the court that you can sustain the payments, and work via the bankruptcy a payment schedule that will catch up and payoff the arrearages, you will be fine. You have another choice and that is to sell the property prior to the foreclosure, or during the bankruptcy procedures, and then you can pay out of the bankruptcy and pay off the mortgage and walk away with your equity. The third way is to obtain a second mortgage, but you will obviously pay a high interest rate and probably several points, in order to get the second mortgage, but it will also buy you time in order to sell the house or overcome the financial problems that led to the non payments. The answer to your final question is YES you would get the difference, but it will not be as much, because the law firm that forecloses will get up to a ten to fifteen percent fee to perfect the foreclosure and the bank will get all it's late fees, interest and principle. If you could sell the house prior to all this you can probably get the bank to waive some of, if not all of the late fees, and maybe even some of the interest. You would also prevent the attorneys from making so much to foreclose. Chapter thirteen will certainly be cheaper, even with the attorney's fees to do that, as they aren't as high as what the foreclosing attorneys will make. Act now, as every day counts. Good Luck.

Answer 3

You can pay your past due payments PLUS Lawyer fees associated with the foreclosure. Can be several thousand dollars added to it for the Lawyer.

You should have been trying to work out a payment plan WAY before now, but if the bank will accept a plan then yes it is possible.

You could ask to make a current payment and then to spread your arrearage out over 6 months to a years and pay that amount each month as well as the regular payment.

Yes, you will get the difference but if that is what it was worth several months ago you may be in for a rude awakening when the final sell takes place.

I have to ask if you have that kind of equity why in the hell are you in foreclosure?

Answer 4

You have the options of overriding the Lis Pendens Notice, but only up until the foreclosure is "judged". After that you are at the point of no return. If you can miraculously pull out all the "debt" associated with the fees and past due...the judges will work with you. The forbearance stuff...I wouldn't think so...You get the profits from the sale (I believe).

START BY GETTING A NASTY R.E. ATTORNEY NOW! The bank will work it out, if you hire a nasty S.O.B...no matter what your personality is, or your position or beliefs, the attorney will protect you. You should get out of this one even if it means a refi for a year or two until your credit improves enough to get a better rate on the remaining principle on your property.

Answer 5

1. You could sell your house before the bank takes it.

2. You can get current... they will usually allow it.

3. You can work out a deal to have your loan recalculated so the missed payments are put on the end of your loan.


If you owe 200 grand on a 600,000.00 home you need to sell your house and move into something you can afford... it should be easy for you, as you are not "trapped' by negative equity.

But if you let the bank take it, you will lose big time.

Answer 6

If they have already filed foreclosure then before they sell it would be in your best interest to talk to a lawyer about your options .Depending on the loan you may have to pay the loan off anyway even if the foreclose or they will take your tax money for the loan that was left owing. Also if they sell it will be to late.Time is a factor for even a Attorney to help they are going to need time to file papers in your behalf.As for bring the loan up to date you would have to talk to the people that has the loan to see if they will even let you.

Answer 7

Work your damnest to get caught up! Don't waste time asking people (yahoo's) here what to do. Talk with your lender and see what options they will give you. If necessary call 888-995-HELP it is a HUD approved counseling service that may be able to help you. There are things I would say, but I'm not into violation notices from Yahoo. Call that counseling service today!

Answer 8

Your lender will be able to tell you about the options you have available to avoid foreclosure. Ordinarily they include paying the outstanding amount due or instituting a payment plan.

Answer 9

you need to be talking to your lender ASAP.

most foreclosure sales occur at such low prices that you'd lose hundreds of thousands, so you need to fix this immediately. [sale for the amount of the loan is quite common where I live and then you'd lose every penny of equity.]

your legal rights depend on where the property is and you didn't tell us. please google your location [state if you're an American] and foreclosure.


GL

Answer 10

talk to your lender and talk to a Lawyer.Sometimes if the bank goes Thur sheriff sale you will loose the place unless someone buys it at the sale and then sells it back to you which rarely happens.Refinance may be your best bet but must be done before the sheriff sale.