Is it possible to avoid a foreclosure?

[princesspwrhr]

Fill out the hardship papers and keep on your lender about getting them processed. I've seen some people save their homes that way, and I've seen others foreclosed on while the lender had them jumping through hoops that turned out to be in vain. I think lenders are more likely to work with you to keep you in your home than they were even a few years ago, and if you're able to resume payments now you are in a good position to take advantage of whatever modification options are offered.

This (the bolded) is what happened to us 12 years ago. We had a BUYER for our house even. The bank simply stopped replying and answering the phone. Once they decided to foreclose, that was it. We were strung along with false hopes and lies until they had their paperwork in order.

Have you considered bankruptcy? Don't flame me please, but it sound like OP faced financial difficulties beyond her control, and is on the right path now. A chapter 13 bankruptcy would allow you to pay off the arrears over several years. Once you file a bankruptcy, all foreclosure actions will stop immediately. It will affect your credit for a number of years though, and you would pay sky high interest on any loans (autos, etc.) for a long time.

There are a lot of very successful people, including Donald Trump and a number of congressmen, with bankruptcies in their past who used the opportunity to turn their finances around.

Not always true(the part I bolded)- or at least, not true 12 years ago in our situation. We were filing bankruptcy, had a buyer for the house, had been in constant contact with the bank, anything and everything we could do. The bank still foreclosed and even though our discharge papers include the house, the credit reports still listed it as a foreclosure.

 

[LaurLaur04]

This (the bolded) is what happened to us 12 years ago. We had a BUYER for our house even. The bank simply stopped replying and answering the phone. Once they decided to foreclose, that was it. We were strung along with false hopes and lies until they had their paperwork in order.

Not always true(the part I bolded)- or at least, not true 12 years ago in our situation. We were filing bankruptcy, had a buyer for the house, had been in constant contact with the bank, anything and everything we could do. The bank still foreclosed and even though our discharge papers include the house, the credit reports still listed it as a foreclosure.

I'm going through this now! I have buyer and they approved a short sale and we have done everything asked and now all of a sudden they won't answer or return my calls or emails!! Didn't happen to be bank of America did it??

 

[CloveLeaf]

I am posting under an alternate LOGIN name....

I just received a summons to appear in court for foreclosure proceedings. I fell onto some hard times a few months ago due to my job and have been unable to make my mortgage payments since last August. I kept my lender abreast of what was going on, but still received the papers.

My question is, is it a definite that I will lose my house? I am now back on my feet and am able to to resume my mortgage payments. I received hardship papers in the mail from my lender and am in the process of filling them out.

Is there still hope?

Yes, there is definitely hope, as long as you are able to resume mortgage payments. You lender would love to see you paying them instead of foreclose on your house. Just let them know you need to reinstate, they will probably give you a reinstate quote. Make the payment and the auction sale on your house will be cancelled.

 

[dmiller64152]

This (the bolded) is what happened to us 12 years ago. We had a BUYER for our house even. The bank simply stopped replying and answering the phone. Once they decided to foreclose, that was it. We were strung along with false hopes and lies until they had their paperwork in order.

Not always true(the part I bolded)- or at least, not true 12 years ago in our situation. We were filing bankruptcy, had a buyer for the house, had been in constant contact with the bank, anything and everything we could do. The bank still foreclosed and even though our discharge papers include the house, the credit reports still listed it as a foreclosure.

You must have filed a chapter 7? Chapter 13 is a reorganization, not a liquidation, so most people do keep their homes. Even if OP eventually dismissed the filing, it would but some time while she dealt with her lenders.

http://money.cnn.com/2010/07/21/real_estate/bankruptcy_and_foreclosure/index.htm

 

[khaoskat]

I am posting under an alternate LOGIN name....

I just received a summons to appear in court for foreclosure proceedings. I fell onto some hard times a few months ago due to my job and have been unable to make my mortgage payments since last August. I kept my lender abreast of what was going on, but still received the papers.

My question is, is it a definite that I will lose my house? I am now back on my feet and am able to to resume my mortgage payments. I received hardship papers in the mail from my lender and am in the process of filling them out.

Is there still hope?

Not sure where you are located, but there are many programs out there that can help you save your home.

Contact your local Fair Housing Office and they maybe able to refer you to them. In my area that is who makes the initial referrals to the organizations. I took a Continuing Education class through them back in late 2011 early 2012 that listed some really good programs out there, and have been able to refer some clients and friends down who have had their homes saved.

There are grants available to help you get caught up; there are programs that if the foreclosure process has started that can help you navigate and get it kicked; there are programs that can help you refinance or negotiate with your lender.

Like previous posters have said, Lenders do not want to foreclose, because it costs them more in the long run.

Also, contact your State's Attorney Generals Office, they maybe even able to make referrals for you to programs in your local area or who to contact in your local area for assistance.

 

[BunniesandRainbows]

I just wanted to thank everyone for their replies, even the snarky ones. I've never been behind on any of my bills, so this is hard for me. I'm single with two children and the thought of being forced to leave our home is causing me many sleepless nights.

I have 30 days to make an appearance in court (which I will make) and next week I have an appointment with a mortgage forclosure mediation program recommended by the court system.

Thanks again.

 

[princesspwrhr]

I'm going through this now! I have buyer and they approved a short sale and we have done everything asked and now all of a sudden they won't answer or return my calls or emails!! Didn't happen to be bank of America did it??

It was Wells Fargo. How sad that banks are still behaving like this.

You must have filed a chapter 7? Chapter 13 is a reorganization, not a liquidation, so most people do keep their homes. Even if OP eventually dismissed the filing, it would but some time while she dealt with her lenders.

http://money.cnn.com/2010/07/21/real_estate/bankruptcy_and_foreclosure/index.htm

This article is from 2010, which is more current to the OP's situation- mine was 12 years ago during the beginning of the "dot com collapse". We were unemployed for 7 months and when we did find employment again it was at half of our original pay (but it was employment!!! ) [rant with personal detail that don't belong on a forum deleted] it was 12 years ago, it was frustrating, but we're finally back on our feet.

My point was that while theoretically the banks don't want to foreclose, and theoretically they will work with honest people who have fallen on hard times- sometimes the banks behave like the heartless villains they are publically portrayed as. I truly hope the OP does not find herself in the situation the PP or myself was in, but it's also wrong to have everyone say "it will be fine."

 

[pooh2001]

good luck

 

[Colleen27]

My point was that while theoretically the banks don't want to foreclose, and theoretically they will work with honest people who have fallen on hard times- sometimes the banks behave like the heartless villains they are publically portrayed as. I truly hope the OP does not find herself in the situation the PP or myself was in, but it's also wrong to have everyone say "it will be fine."

The type of loan seems to make a difference too. If it is an insured loan (FHA) the banks have less incentive to work with homeowners to avoid foreclosure, and often that shows. I hear it is better now with HARP and other modification programs in place, but just before the big housing meltdown I know at least two major lenders who would only allow a modification if you could requalify for your loan, including meeting minimum standards for credit score and length of employment. So basically it was impossible to qualify. I also know one family whose modification was denied because of a poor LTV ratio; homes in their area lost 50-70% of their value from peak to valley in the housing meltdown so even though they had a solid down payment and had been paying extra principle they still owed more than the 125% maximum limit.

I'm glad that some of these processes have been streamlined and made more real-world-friendly since then ('08-'10 were the worst around here), and I hope the OP is able to work something out to stay in her home.