My house is set to foreclose. There is an auction date. If I get the payments current, will it still foreclose

Question by Michael W: My house is set to foreclose. There is an auction date. If I get the payments current, will it still foreclose

Best answer:

Answer by Don Ciesio
Call your Lender, QUICK!!

Know better? Leave your own answer in the comments!

24 Comments/Reviews

  • Juana says:

    Foreclosure procedures ARE reversible.

    Call your lender immediately, they will be glad you did. Before this last real estate crash, the ratio of severe delinquencies that end up in foreclosure was 50%. It’s everybody’s guess how much that will change during the current slump.

    Now the real question is whether avoiding foreclosure is in your best interest. If you bought in a city in USA during the last couple of years, chances are you overpaid for the house.

    If you did, you are not the only one. Having an idea of how much more do you owe than what the house will end up being worth is key to make a rational decision. Are you willing to pay for years just to compensate how much you overpaid?

    Bankruptcy has a stigma, but it’s generated and disseminated by financially illiterate people. Don’t let them do something that is not on YOUR best interest. Sometimes a clean start is better than becoming a slave what you are trying to hold on to.

    Good luck!

  • Leo F says:

    You have up to the day of the auction to make up the back payments, late fee and trustee fees and any other fees the lender occurred.

  • Mary B says:

    If you have the money, you need to call them TODAY and have it wired.

    That will stop the process, however, keep in mind that at this point in the game, they will not only want the payments current, but they may also want foreclosure costs.

    However, I have heard of banks waiving the foreclosure costs ONCE if you can bring the payments current.

    You need to call and SPECIFICALLY talk to the loss litagation department. Tell them you want an OVERNIGHTED written agreement of what they will do for you BEFORE you send them a dime.

    Their job is to tell you anything you want to hear to get a payment into them….so if you don’t get an agreement in advance, don’t be suprised if you send in your payments current, and they still foreclose..they can do that once the process gets so far.

  • Elle F says:

    Of course if you pay the amount owed you will reinstate the loan!!!
    Filing bankruptcy would definitely help. However with bankruptcy you still need to have you finances together so you can make the necessary monthly payments to the trustee of your bankruptcy. I am referring to Chap 13.
    OR if you can get some to “put a contract” on your house (like a friend who is a Realtor or investor or something) that would buy you at least 30 more days.
    I sure you can find a local real estate investor you may help you get out of this mess…
    If your payoff of the loan is extremely high your may not be able to find anyone who will reinstate it for you (investor for example) Investors are looking to see if there is any equity in the house. A lot of foreclosure cases I have seen, the home owners owe more than the house is even worth & the actual loan amount.
    You may have to sell your house in sacrifice of not getting that ugly foreclosure on your credit!!!
    Also, you should try to work with someone at the bank. I know it’s hard because by the time you are in this state, all your other debts are in a mess too!
    I dont know.. if it is up for auction you have been dealing with this for at least 3 months or more…
    Good luck!

  • MadforMAC says:

    Why have you let this go so far? I don’t think once the ball is rolling you can change that, but quickly get in touch with the lender and try to work something out. Many are being somewhat human and cutting people deals.

    Never, ever let a home go into foreclosure, there are always ways to negotiate with the lender and find others to help out. Just be very careful and get legal advice and read everything carefully. If you don’t understand something, get it made clear to you. Good luck.

  • bostonianinmo says:

    Some states provide for a redemption period after the foreclosure though many do not. Don’t depend upon that. Even if you do have redemption rights, the costs to you after the foreclosure will rise dramatically.

    One thing IS universal, though. If you pay the arrearages and bring the loan current before the hammer falls at the auction the foreclosure process stops cold.

  • four2x4 says:

    Depending on the state you live in, it may be too late to get current. At this point you may need to pay the whole loan off to protect your home. If the property is worth less than you owe, it may make sense to let it go , as your credit is already ruined.
    A foreclosure or a foreclosure “redeemed” looks the same to a potential lender, in the future, so it may be financially to your benefit to let it go and rent for a while.

    This is a complex situation that needs to be answered by someone who knows your complete history, and situation, but…. this is the short answer.

    Added later… About bankruptcy, this may be a viable move for you, although others said no. Your credit rating is ALREADY RUINED. Sometimes, a Bankruptcy is a good way to “draw the line in the sand” of your difficult past and the future you create financially. See an attorney about this option and don’t let lay-persons on this forum tell you what to do. Take the advice, and then take prudent steps to solve your unique situation.

    Added later,
    IT is NOT true that the foreclosure will “stop” if you get your loan current “before the gavel hits the desk” . In Non-Judicial states, such as California, a lender does NOT have to use the court system to foreclose, (that is, a judge who makes the final decision). Non-judicial foreclosures are very common and time saving for the lender, and the “right of redemption” ends days before the “trustee’s sale” at which point your ONLY option IS to pay the complete mortgage off, including costs. Difficult for most since they are losing their home as it is.

  • acermill says:

    Your lender will require you to bring payments to a current status, along with any past due charges, as well as paying their incurred costs for the foreclosure action. Given that you are this far along in the foreclosure, there may be several thousand dollars of attorney and other legal fees involved. Call your lender and ask how much money will be required to bring your account back into non-foreclosure status.

  • origamimark says:

    You should ask your lender.

  • ZCT says:

    It really depends where you are in the process. If you can get the payments current, call the lender and ask them if they will work with you to prevent the foreclosure. As a rule they don’t want to foreclose any more than you do.

    If you can’t work something out with the lender, I like the other suggestion of contacting a lawyer. It may be possible to save the home, even if you have to file bankruptcy.

    If the auction off the house, you will be in very bad shape. You lose the home, and you will still owe plenty of money on it. With a foreclosure on your credit report, there is not a good chance of getting another home in the next seven years.

  • Jesse Rocks says:

    This is what you need to be asking the lender. Banks are not in the business of foreclosing-they would rather have the money. In this case, typically they require nothing short of PAYOFF to stop foreclosure. BUT they DO make exceptions again, because they want $ $ not property.

    The last thing and worst thing you can do is aviod the bank–you should be talking to them DAILY-asking what you can do. If they think you are serious, the more likely they will be to work with you. I know its embarrassing and THEY know you are embarrassed, but I’m telling you, THIS is where people make their mistakes…AVOIDING them.

    Call them.

  • Beth says:

    The bank/lender always wants to keep the house in good standing, if at all possible. They wouldn’t want to foreclose because they lose money in the process. However, you need to make sure that after you get this costly situation taken care of you are able to make your future monthly payments on time with no problem.

    You cannot file bankruptcy to stop this process. It’s not only a foolish suggestion, but it’s a financially dangerous path to take.

  • rfogle63@sbcglobal.net says:

    Contact your lender they will work with you if you can get the payment current…. They don’t want the property to foreclose because there is a chance that when it goes to sale they won’t get the full amount owing… They would rather work with the owner and work something out…

    Contact the lender as soon as you can…

  • kgallagher50 says:

    No, but you will need to give the entire recovery amount to stop the process.Once you are in foreclosure they will not accept partial payments.

  • bustersmycat says:

    If you satisfy the outstanding dept including all legal costs etc you should be able to stop the foreclosure. I had this problem because of unpaid property tax, but I was in the process of selling so the city allowed a slight delay in the foreclosure date to allow the sale to be completed. I am not sure of the circumstances that will arise if it is the mortgage holder that is doing the foreclosing, they probably have the right to demand the entire mortgage once you are in default, so getting current in your mortgage payments plus paying the legal fees incurred for the foreclosure may not be sufficient. Talk to the bank.

  • Kurt W says:

    You NEED a lawyer NOW!!!!!
    Monday morning be at the office of a bankruptcy attorney. DO NOT DELAY. He will be able to file papers to stop the sale of the property.
    Take copies of all of your bills. Take copies of all of the paperwork on the foreclosure.
    Get it done asap and you may get 8-10 months delay to catch up.

  • Yeahhoo P says:

    why would you get the payments current, if it’s going to foreclose?

  • Heavily Armed says:

    the best thing you can do is communicate with the loan company… call them and try to work out a “get current plan” the mistake mot people make is not calling them… but it costs them thousands to foreclosed tso they will want to work it out with you!!

  • logsdodl says:

    The lender would want you to make up the payments and not foreclose so call them as soon as possible. When you place forecloses the lend holder losses the most money so they would like to see you become current on your payments.

  • GUARD DOG says:

    I believe that once a foreclosure has begun, there is little chance of stopping it—

  • Dippin Dots of East Lansing says:

    yes, havent you seen happy gilmore? lol

  • shop2early says:

    No, not if you let your leader know ASAP. Good luck.

  • Posh says:

    You should have time to redeem after foreclosure. You are allowed to stay there a while afterwards. Read the paperwork details. You can still pay after foreclosure, it will cost more.

  • Mike M says:

    Yes.

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