Once your home is in foreclosure, is there any company that will help you or can the foreclosure be stopped without paying the entire amount owed all once?
Our Mortgage co. sold to another company. We fell a couple months behind. Tried several times to make it up making payment plans but new company refused to accept partial payments. Said only full amount would be accepted. Of course we fell farther behind and they started foreclosure on us. Our home has plenty of equity in it. We've had it for 15 years and don't want to lose it but don't know what to do. Thank you for any help and information.
Answers | 3
Assuming you've considered selling a car, borrowing from anyone you can and any other fast-cash avenues and they don't get you there, here are a few of the viable options you do have:
1) File bankruptcy. Horrible option, but better than losing your home and a BK does no more damage to your credit than a FC. I don't know the BK laws in Illinois, so best to speak with a BK atty there to get all the facts.
2) A real estate attorney may be able to help IF - and it's a big if - your existing financing was a MERS loan and is/has been serviced (payment collections) by a loan service company, rather than an actual lender. If this is your scenario, I know there have been literally millions of homeowners that have successfully utilized the loophole that if no sole entity holds the actual note, the servicing agency does not have the right to file foreclosure proceedings against you because they do not, in fact, own your debt contract. A real estate atty can put a swift "Cease and Desist" order on the loan servicer, requiring them to provide valid documentation of the noteholder and that the noteholder has authorized the servicer, on their behalf, to file and pursue the FC.
3) Sell the property and take your equity while you can still get it. Time is not on your side and you may have to accept an offer below what you want, but it's better to walk out of this situation with something, rather than a blight on your credit AND nothing to re-establish your life.
The bottom line - DON'T WASTE TIME! If you were my family, I'd say, list the house right now and in the meantime contact a real estate lawyer and a BK lawyer to get all the facts you need. You can always turn down offers on the house - and maybe you will only sell as a last resort, but get the wheels in motion. Failing to plan is planning to fail.
I wish you all the best!
Everyone wants to keep their home. My main concerns are can you afford to stay in the home?
If you do manage to obtain financing to stay in the home. The payments may not be viable for you.
Have you considered moving into another home? Keep in mind that if the home is sold in foreclosure any extra equity (you said there is plenty) comes back to you (after fees). So, this may work. No guarantees.
There are numerous legal strategies to slow the process down. All of these incur fees.
There are also short sale investors that may offer you a lower price in cash without foreclosure fees.
All have pros & cons. Always ask questions until you are comfortable with the answers.
Hope this helps
It's not what you make, it's what you keep that determines your lifestyle.