How to Stop Foreclosure
The foreclosure on a property is classified as a process of legal restitution in which a piece of real property is taken from an individual as a result of a default of payment with regard to a mortgage loan. Although reasoning exists for the desire to stop foreclosure from taking place, such as the protection of credit ratings, the costs associated with foreclosure, and the damage of personal financing, there also exist instances in which stopping foreclosure is not possible. The following are some methodologies adopted in order to stop foreclosure:
1. A ‘good faith payment’ will be accepted in situations where a mortgage loan payment is in default; although there does not exist a standard for payments of this nature, good faith payments submitted in order to stop foreclosure range anywhere from 25% to 50% of the outstanding mortgage loan payment
2. Certain circumstances will allow a borrower in default to submit a statement reflecting their personal financial situation, which can convey:
• Financial hardships experienced that caused the mortgage loan in question to go into default
• Evidence that an individual possesses the means to effectively fulfill future mortgage loan payments
3. A ‘letter of hardship’ can be submitted in order to appeal a proposed foreclosure; this written statement can convey financial matters and circumstances that have had a substantial effect on the finances of the individual in default
Pre-foreclosure as a Means to Stop Foreclosure
Pre-foreclosure can be a means to stop foreclosure on a piece of real property; however, the mortgage lender is not obligated to allow the borrower the opportunity to stop foreclosure through the process of pre-foreclosure – in the event that both parties agree to institute pre-foreclosure, there can exist a greater chance to stop foreclosure from taking place.
• Pre-foreclosure is the temporary ceasing of foreclosure measures resulting from the default on a mortgage loan; in this time period, the lender will be granted the opportunity to sell the property in lieu of foreclosure
• The opportunity to stop foreclosure through a pre-foreclosure sale allows the borrower in default the ability to protect their individual credit rating
• The duration of time allotted for a pre-foreclosure sale can vary; oftentimes, this can rely on regulations set forth by the United States Department of Housing and Urban Development (HUD)
Assistance in Stopping Foreclosure
The procedures and legislation not only implicit in the process to stop foreclosure exists on a case-by-case basis, but also vary with regard to the location of the real property in questions. Elements examined in the determination of the validity and legality of the desire to stop foreclosure exist in conjunction with preexisting factors, which include the financial state of the individual hoping to stop foreclosure, the status of the mortgage loan, the term(s) of the mortgage loan, the condition of the real property of which an individual hopes to stop foreclosure, as well as any exception(s) and conditions expressed in the initial property agreement.
Legal Advice to Stop Foreclosure
All details, records, and supplemental evidence expressly requested by applicable foreclosure documentation and applications should be provided in the most timely fashion; furthermore, all deeds, asset lists, and related liabilities should be submitted - forms submitted with the hopes of being able to stop foreclosure should be completed to their fullest extent and in a detailed fashion. In the event that an individual experiences difficulties with regard to the process of stopping foreclosure, they are encouraged to consult with an attorney specializing in the field of foreclosure legality, property law, estate law, contract law, and insurance.