The first step to stop foreclosure at the last minute involves filing for bankruptcy. When you file, the court issues an order containing an “automatic stay,” putting a foreclosure on hold. While the lender can get around an automatic stay by filing a motion, even if their motion is granted, it will take a couple months to take effect. If the lender does not make a motion to remove the stay, the hold will last throughout the remainder of the foreclosure process, which can last up to 4 months.
What are the risks of bankruptcy?
The inability to file another bankruptcy for a certain period of time, and can lose your protection against new collection actions (such as wage garnishments). Credit takes a hard hit, and even if you can get credit, it comes with significant interest rates. Chapter 13 bankruptcy may allow you to save your home if you are ALREADY in the bankruptcy process.
Chapter 7 may help you if you can no longer make payments.
Apply for a loan modification. It is easier to apply for a loan modification before you are facing the daunting task of how to avoid foreclosure, but it is still possible to do this at the last minute. If the modification is approved, your foreclosure remains stopped unless you stop making payments again.
If you live in Grand Rapids, The Walker Group USA has connections with the city that allow us to know how to stop foreclosure at the last minute in certain situations. This is at no cost to home sellers.
If you are facing foreclosure and considering your options, call us to get your questions answered.
