Stop Foreclosure

Stop Foreclosure

The first and most important step that one can take in preventing the loss of one's home through the foreclosure process is to "communicate, communicate, communicate"! This first step, along with a few others, is detailed below.

Negotiate with the lender. The lender will always work with a client of theirs if the client takes the initiative to communicate any financial hardships that may have caused the default. Negotiate with the lender for a payment adjustment in order to make up for the missed payment or payments. It is imperative that you act quickly in order to prevent the sale of your home, because once the foreclosure process begins you only have 120 to 140 days before your house is sold. Contact your lender to explain your situation and work out a way for you to keep your house. You have the most time and the best chance of being able to negotiate a solution before the trustee files the notice of default. If foreclosure has already begun you must contact the lender during the 90 day period before the notice of trustee sale is posted and filed

Foreclosure Process

Usually involves the use of the deed of trust, which by its legal definition involves three parties; the trustor (borrower), the beneficiary (lender), and the trustee (neutral third party receiving the right to foreclose). The deed of trust usually includes a "power of sale" clause that gives the trustee the legal right to enforce collection of the debt. Collection of the debt is ultimately enforced by the right to sell the house when the borrower fails to make their mortgage payments. Defaulting on one's loan causes the start of foreclosure, the process by which the lender takes over the home in order to recover the their principal investment. Once the house is either sold at auctioned or "repossessed" by the lender, it is sold and the former owner must vacate at the discretion of the new owner. When there is a power of sale clause in the deed of trust the non-judicial process of foreclosure is used. In non-judicial foreclosure the trustee must meet a few requirements before he or she sells the property. In comparison to a judicial foreclosure, Non-judicial foreclosure is quick because the trustee does not have to obtain a court order to foreclose, nor is court supervision required in order to sell the house, as is required in the judicial foreclosure process. The judicial process of foreclosure is used when a power of sale clause is not in the deed of trust

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