Stop Foreclosure with a Loan Reinstatement

Do you wish to keep your home from going into foreclosure? Thousands of people have foreclosed on homes across the nation. There are plenty of reasons for this. There are various methods to ignore foreclosure if you are serious about saying your home. These ways include forbearance, loan reinstatement, and a loan modification. The loan reinstatement is the most common way to save your home from foreclosure via bank. A lot of things you should seek when your home is going into foreclosure include: - The Foreclosure Process - Tips on Saving Your Home

The foreclosure process can take up to a year for some people. Not every home forecloses in exactly the same amount of time. This process can take six months for some homes and a year for others. When foreclosure starts a will issue a statement of claim because you have missed at least three payments on your mortgage. Your ability to service the financing of your home will be questioned. The second phase of a foreclosure is when the statement of claim is served to you. The third phase of foreclosure is the bank demanding you sell the home. This will be stated inside of the statement of claim.

A loan modification used to be the most common way to resolve the problems of foreclosure in the past. This way allows the lender to issue a new home loan agreement with you where the entire arrearages are added to the end of the loan. It would expand the life of the loan but the homeowner can continue making their payments as if they were never behind and everyone wins.

This is not a common solution anymore and banks rarely agree to allowing a homeowner have a loan modification. The loan reinstatement is another way to save your home from foreclosing. With this method, a lender can initiated the process of foreclosure and you find a way to pay back all of the missed payments, attorney costs, late fees, etc. These amounts must be paid back in full and zeroed out in order for it to be valid.

There are lots of positive aspects of loan reinstatement you might consider. These include being able to keep your home without the worry of losing it to a foreclosure. You are back at square one with your monthly mortgage payments. You are not behind and you don’t owe any additional money for late fees or anything else. It can be the perfect way and banks are generally willing to accept this way if you can come up with repayments to catch up.

Foreclosure Q & A

Question: What is foreclosure?

Answer: Foreclosure is a legal process in which the rights to a property is taken away from the owner and the property is then sold to satisfy unpaid mortgages and liens against the property.

Question: When do foreclosure proceedings start?

Answer: In most cases, foreclosure proceedings are started when payments become delinquent.

Question: How many payments can I miss before my lender puts my property is in foreclosure?

Answer: It depends on what type of loan you have. Your mortgage contract should state how many payment you can miss before a Notice of Default is filed and sent to you.

Question: Who can foreclose on my property?

Answer: Mortgage holders and other lien holders who have a vested interest in loans on your property, which is used as collateral, can foreclose on you.

Question: What about tax liens?

Answer: A tax sale can take place if you get behind on your property taxes. The tax sale can be initiated by federal, state or local taxing agencies.

Question: From the time I become delinquent on my first payment, how long does it take to complete the full foreclosure process?

Answer: Different types of loans have different time frames. The foreclosure process for FHA and VA loans usually take longer than that for Conventional loans.

Question: How will I know when the foreclosure process begins?

Answer: Once foreclosure proceedings are initiated, a Notice of Default will be recorded at the County Recorders Office in the county in which the property is located and you will be notified by regular mail and by certified mail.

Question: How much time do I have after a Notice of Default is filed?

Answer: Normally, it is ninety days plus twenty to twenty five days for publication. But it would be wise to read all correspondence carefully, and or contact an attorney, to make sure what your rights are and what the time frame is in your situation.

Question: Can I stop the foreclosure sale?

Answer: Yes. You can bring your mortgage payments current along with all late charges, foreclosure fees, taxes, and insurance premiums.

If you are unable to do so, you can contact your lender and try to negotiate a plan to modify your payments but don't wait until the last minute to do this. Other options include refinancing, selling your home and or filing for bankruptcy.

Question: If I file bankruptcy, how will that help me?

Answer: Bankruptcy will stop the foreclosure proceedings and give you time to work out a plan through the courts.

Question: If I lose my property through foreclosure, can I get any money from the foreclosure sale?

Answer: Yes. But first, any remaining balance on the mortgage will be paid along with all outstanding property taxes and court fees. In most cases, very little, if any money, will be left for you to get.

Foreclosure Timeline

In general, the mortgage company will start the foreclosure process about 3-6 months after the first missed mortgage payment.

A few weeks to a few months after the foreclosure is filed, the sheriff sale will be conducted at the county courthouse. Again, homeowners can get this postponed for a while, if they are working on a solution to save the home.

After the sheriff sale, eviction process may begin right away. If this is the case, it can be another 2 weeks to a month or so between the sale date and the eviction date.

Another possibility is if the state law allows for a redemption period, which is extra time after the sale that homeowners can work to keep their homes. During the redemption, they can try refinancing, selling, or paying the loan in full some other way, and keep the home in their names. After the end of redemption, though, the eviction process will start and it will be a few weeks after that that the sheriff shows up to remove everyone.

Trustee Sale

The sale is conducted by the lender's representative at the scheduled time and date. The high bidder must immediately pay the full winning bid amount by cash or certified check and receives a trustee's deed once the sale is completed. The lender will usually bid on the property for the amount of the due loan balance plus costs. Ownership of the property reverts to the lender if there are no other bids.

The lender cannot sue the borrower for a deficiency judgment, and the borrower has no right of redemption after the sale of the property.

Cash For Keys

A "cash for keys" option is something your lender may offer after the foreclosure process is complete. If you have exhausted all of your options and saving your home is no longer possible, your lender may offer you a fee to walk away from the home peacefully. Unless your lender offers this automatically, this is something that will need to be negotiated with them. In general, lenders will offer about 1% of your home's value if you are willing to walk away quickly and peacefully. If your lender does not make you this offer, then you should contact them yourself and try to negotiate this deal.

Methods To Delay Eviction

Eviction

To begin the eviction process after a foreclosure sale, an “unlawful detainer” lawsuit is filed in Superior Court. After the lawsuit is filed, the tenant will be served with a copy of the formal complaint. They have 5 days to file a written response to the complaint with the court. If they respond to the complaint it is considered a ‘Contested Case’ as they are responding or contesting the lawsuit and a hearing date will be set. If they don’t respond within 5 days, it is considered an “Uncontested Case’ and a judgment is automatically filed against them.

Answer to Complaint

Simply by answering the complaint, the process will be delayed up to 20 days, or until the trail date. So they have the initial 5 days after being served, up to 20 days waiting for the trial, and then they’ll be issued a ‘5 Day Notice to Vacate’ so they’ll have another 5 days after the judgment is entered against them to vacate. This delays the eviction by up to 30 days.

Motion to Quash

In a ‘Motion to Quash’ the defendant will claim to the courts that the summons and complaint was not served properly and ask for the case to be dismissed. The obvious point here is how did they know about the complaint if they weren’t served. These motions are typically dismissed and the judge will order the defendant to file an answer within 5 days. This delays the evictions by about 10-12 days.

How To Stop Foreclosure