Stopping a Foreclosure Auction
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You’ll need to stop a foreclosure by making prior arrangements with the bank to negotiate the terms of the loan. It’s the favored option amongst all parties involved and can help you save your home and/or credit.
- Short sale – Obtain a buyer willing to purchase your home for less than what is owed on the property. Many times the bank will agree to the sale and it will save you from hurting your credit with a foreclosure.
- Modifying the mortgage – The bank will agree to change the terms of the loan which may be only temporary. The bank may lower the interest rate or the principal portions of the payments.
- Repayment plan – You may only need to pay on an agreed amount over time in addition to the regular payments. Many lenders may accept the plan with proof of income and a proper down payment.
- Deed in lieu of foreclosure – If the lender agrees, the lender will get the deed transferred to themselves. It usually doesn’t happen too often, but any amount of difference between what the house sold for a the foreclosure sale and what was owed plus legal fees, may be your responsibility.
- Forbearance – In exchange for money, the creditor may agree to temporarily cease legal actions. Sometimes you can list the property with a realtor and that will do the same thing.
