Monday, April 13, 2015 / by Steven Annth
You are about to discover possible things you can do to stop foreclosure dead in its tracks. These tips will definitely help you face your foreclosure and regain ownership of your home. If you think you have done everything, then you should consider starting over and repeating the steps below.
Don't forget, this is your house where you and your family feel safe and comfortable. If you are set on keeping your home, you must say up on your education in regards to the foreclosure process. If you apply for a loan modification and your lender rejected your application, you have to know the reason behind it. You can still fix what was incorrect on your application. You may need to do some calls to your lender to figure the real problem as to why your loan modification was denied. The following are steps that can help you stop foreclosure.
First things first, what you need to do is research for the specific foreclosure laws on your state. Each state has different laws when dealing with foreclosure. There are legal processes according to your state and no one will lose their home if you miss just one mortgage payment. All banks and lenders are mandated to follow all legal guidelines of the state when it comes to foreclosure.
For example, in California if a homeowner misses three consecutive house payments, the bank legally needs to issue a Notice of Default. This notice is a public record and right after this you still have 90 days to reinstate your loan. After the 90 day mark, the homeowner will receive a notice stating that your home will be sold within 21 days at the courthouse. Time is on your side in this state when deciding on a solution that works best for you so there is no need to panic.
If you want to apply for a loan modification, you have to quickly call your bank to postpone the sale date of your property. The lender should agree to postpone the sale date until they have made a decision on the application of your loan modification. Your loan modification application will not stop the foreclosure, but your lender cannot take away your house if they are still in the process of reviewing your application.
If you have received a notice of default, you have to call your lender to get the status of your account. You can count on your lender to make many phone calls to you to in order to collect payment, but this is not actually your lender it's the collection department of the bank. It is very vital that you keep constant communication with your bank letting them know that you still want to save your house.
Your lender will ask if you can pay your debt and should make the best effort possible to do that. You can just make one monthly payment and do not make more than one payment even if your lender will try and force you to. Even if you do not have the money to make a payment you need to make sure you let your mortgage lender know that.
Do not ignore calls coming from your lender if you are determined to save your home during these tough times.