This is about options right up to the last day/hour of a foreclosure. Up to 5 business days prior to Trustee Sale, you can reinstateyour mortgage. It is your responsibility to get in touch with the lender and make those arrangements. Get everything in writing and make sure you understand what you are agreeing to.
- The first option is that you get enough funds together to catch up the loan by the 5 days prior to the Trustee Sale date deadline. Staying in touch with your lender is a good idea - keep the relationship open.
- The second option is that you get an offer to purchase your home and its prior to the Trustee sale date and this can be either through a short sale or a regular sale if you have the means or equity to afford a regular sale of your property
Did you know?
If you are in foreclosure and have received your Notice of Trustee Sale date - which is the date set for auction/sale of your property on the county steps -- you still have time to reinstate your loan. So never give up.
You have until minutes BEFORE the time of your Trustee Sale to file for Bankruptcy (either Chapter 7 or Chapter 13). If you should wait until the last hour -- it will be up to you to get that information to the lender that you have filed and the best way to get that information to your lender is to fax and then call to verify that the fax was received. The time stamp on your bankruptcy document will be the deciding factor or when it was filed. This is a last minute effort to save your home.
Bankruptcy options:
Chapter 13 - if you want to do a payment plan and keep your home. This plan will either be for 3 or 5 years and it must be approved by the court. Seek a bankruptcy attorney or professional for this filing.
Chapter 7- if you do not want to keep your home and you have a load of other bills to be discharged. This chapter is complicated and it is best that you get professional / bankruptcy attorney advice.
** A listing agent will be able to take offers up to the point of the sale. However, it gets pretty sticky and if(y) if you do not get the offer to the right person. The person that can not only make decisions of short sale approval but also who is willing to put a stop to the Trustee's auction/sale. This is very important to have that sale postponed until a decision has been made. Try to get it in writing but that is not a promise that you can.
** The same procedures are for a regular sale as a short sale as far as letting the lender know that you have a buyer and ask for a delay the sale. Without that delay --- you may lose your home!
My point: Please do not give up -- right up to the last minute, because there are options and who knows there could be a postponement at the last minute. Keep reaching for the goal you want from your property.
Seek help from an agent: An agent that understands the Default, pre-foreclosure, foreclosure, short sale -- the entire process.
Rosemary Brooks - the Mother and Daughter Realty Team @ Evolve Realty Group - 866-750-8282
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Good tips for homeowners out there Rosemary. This comes at a time where many need the information you offer up here. Very good job and nice lay out to your post.