How to Delay Foreclosure, Legal Tactics

Attempting to delay a foreclosure doesn’t mean you delay taking action.  You must act with urgency in order to get the most from each of these maneuvers.  The following list presents short-term solutions.  We also offer permanent options to avoid foreclosure on a separate list.

1. Call your Lender: You should contact your lender as soon as you realize that you will have challenges in paying your mortgage.  A lender will be able to discuss all available options to prevent foreclosure and it will also relieve some of the pressure for them to aggressively push the foreclosure proceedings forward.
2. Pursue a Forbearance: A forbearance will allow you to postpone payments and catch up on back payments by paying down what’s owed over several months. This could give you time to attempt to sell your home or explore other options.
3. Negotiate a Loan Modification: You may be able to convince the bank to modify the terms of your home loan if you can demonstrate that you have the ability to make a lower monthly payment. The bank can add your missed payments to your balance, lower your interest rate, extend the term (amount of time given to repay the entire loan) of the loan, or possibly forgive a portion of the amount owed.
4. File a Demand to Delay the Sheriff’s Sale: In some states a homeowner can file a demand to delay the sheriff’s sale if the court rules in your favor.  It is suggested that you consult a qualified attorney to discuss this option.
5. Court Delays: If your state permits, when facing a judicial foreclosure you may be able to request a trial by jury.  The court will need additional time to facilitate a jury.
6. Challenge the Lender in Court: State regulations governing foreclosures are very specific.  If a bank or lender fails to follow these rules and associated timelines, you should bring it to the court’s attention which would compel the court to give you more time.  Specifically, you should make sure that the lender provided the appropriate amount of notification (usually at least several weeks), and informed you of any right to redeem your property. It is recommended that you review your state’s foreclosure laws to reveal any abuse by your lender.
7. File for an Adjournment: Adjournment is a legal term that means delay.  You can request an adjournment for any court date if you have a good reason, such as the inability to obtain or gather documents in time for the court date.
8. Bankruptcy: Filing for bankruptcy will grant you a stay, which essentially freezes all bills due including your mortgage.  This requires that you hire an attorney and can be costly, and is not always a long-term solution as advertised by many less-than-ethical attorneys.  If bankruptcy does seem to be the right solution for you, and you are married with your spouse being co-owner of the property, consider filing bankruptcy individually with you first and your spouse later, stretching out the period of time that a stay is effective.

Tags: bankruptcy, loan modification, Options to Foreclosing, tips