Foreclosure how can i keep my home

If you have questions about how foreclosure works in your state and what protections against foreclosure you have under federal and state laws, or you think you want to fight a foreclosure in court , consider talking to a lawyer. If you can't afford to hire a lawyer to represent you throughout the entire process, consider at least scheduling a consultation with one who can help you decide what to do, tell you how foreclosure works in your state, and explain your legal rights and responsibilities.

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Ten things you can do to avoid losing your home in a foreclosure. What You Can Do to Avoid a Foreclosure Below are ten things you can do to try to prevent a foreclosure from happening. Gather your loan documents and set up a case file. You should also include: your monthly billing statements a record of the payments you've made escrow statements if applicable property tax information insurance information any correspondence from your servicer , and copies of any letters you sent to the servicer.

Learn about your legal rights. The mortgage or deed of trust and the promissory note will contain important information such as: whether you can reinstate the loan by catching up on the past-due amounts state law might also provide a right to reinstate the monthly late charge amount, and what other kinds of fees the servicer can charge when you fall behind in payments.

Organize your financial information. Review your budget. Know your options. Here are just a few possibilities: Loan modification. Call your servicer. Contact a HUD-approved housing counselor. Avoid for-profit foreclosure rescue and loan modification companies. Learn about your state's foreclosure laws. You should learn about your state's foreclosure laws so you know: how long you have to work out a deal before you'll lose the home to a foreclosure sale, and your rights and protections during the foreclosure process.

You may have other options that could allow you to get caught up and bring your loan current. All the options discussed above apply, so consider them, as well. Remember to keep focused on an affordable outcome. Here are a few more options:. Depending on who is involved with your loan there may be specific guidelines for the servicer to follow and steps they must take.

See Does it matter who owns my mortgage? Bankruptcy might be an option. If you have not been able to speak with a lawyer or housing counselor about your loan, you may want to consult with a bankruptcy lawyer. Most bankruptcy lawyers will give a free consultation.

Also, if you have been the victim of illegal predatory lending, the bankruptcy court can consider these issues in determining a fair resolution between you and the lender.

Bankruptcy could be a good option, but it is not for everyone. Even though you have received foreclosure papers, you may still be able to save your home. Here is a short to-do list:.

Warning: Negotiating with the servicer or mortgage holder does not always postpone a foreclosure. The mortgage holder or servicer may let the foreclosure continue even while you are negotiating. It is critical that you read and follow the steps in our pamphlet Home Mortgage Foreclosures in Maine until the court issues a formal stay or a dismissal. As hard as that might be to hear, keeping your home may not be your best option. Selling your home may be your best option.

If you are not able to make a realistic workout plan, refinancing with a legitimate company is not possible, and you will not benefit from bankruptcy, the best remaining option is to sell the home at fair market value. Although selling may not feel like a good solution, a sale at or near fair market value can allow you to pay off the mortgage and keep the equity in your home. Depending on how much you have paid in, that equity—the value of the home after you pay off the mortgage—could be in the thousands of dollars.

If you have decided that keeping your home is not realistic or is not the right choice for you, and it is not too late, here are some other possible options:.

If the mortgage holder "writes off" gives up any part of the debt you owe - even if they reduce your interest rate - the IRS may consider it as income to you and charge you taxes on that income.

However, if you were insolvent your debts are more than your assets at the time the debt was forgiven, you may be exempt from any taxes for the forgiven debt. Same answer as before. I went to bank and even tried to pay it at their branch. Now here we are over 2 years of them not wanting to except our payments to where they are foreclosing on us. I had to retain a lawyer to help us with everything that happened to us.

They finally sent a letter to our lawyer stating that they locked up our account and refused our payments because of some type of description problem.

Do we as consumers have a chance to go after them for wrong doing and or have a chance to make them stop the foreclosure. Not sure if we would have any legal recourse against the mortgage lender. Any information will greatly help us. I am 13 months behind in my mortgage. They offered me a streamline modification, where they will give me a trial period of 3 months and then my mortgage term will become 40 years, maturing in We originally took this mortgage in What I want to know is what happened to all the payments prior.

Those missed payments may have been added to your outstanding loan balance. Best to ask them directly what the loan amount will be on the modified loan including missed payments, fees, etc. We made the payment on time, but are currently 15 days behind on this month. Can they file foreclosure on us for being currently 15 days one month behind as this bully on the phone with my wife claimed?

WF has been a horrible lender, and instantly started to bully us when I had a job loss last year. We were originally 2 months behind but are less than one month behind now. They have been a horrible company to deal with, and I just want to know if they are just making empty threats, or can file foreclosure for being a month late, even though we continue to pay them. Good luck. You may want to contact the HOA and see if you can pay the dues and penalties to get the account back in good standing instead of dealing with costly foreclosure proceedings.

The bank did nothing to help. Well…unfortunately that is where we ended up, late as we told them we would be. Then they tell us, you have to be current for them to help us.

We had to hire an attorney…after the bank filed a foreclosure on our home, and after us submitting countless mod packages never seeing the bank review one of them. The worst part is that it is a Sonymae mortgage and the lender does not participate with any of the government assistance programs that any other mortgage could help us.

This lender ends up getting paid for the home whether we pay it or not. It is a horrific situation. What would give them incentive to help anyone in this type of mortgage if they lose nothing.

Any advice would be so helpful. Sorry to hear that, it sounds truly awful. Maybe that will motivate them. Thanks so much Colin…I really appreciate the advice. I am going to speak with my attorney about reporting the bank to the CFPB. I think that would be a great next step. I will ask them. I hope and pray there is an end to this nightmare, sooner rather than later. Will let you know how things go. No offense, Colin, but I see no advice given from you!

You always seem to just pass the buck! What did the lawyer actually do for you? You should have asked him these questions. He sounds as if he passed the buck, too. Just what did he do you? Just commenting…. Or possibly consult a lawyer. Let me know what I could add that would be more helpful.

Hi Patrice, Thank you for your comments. I have not seen anything new happening. Or more of the same documents, already submitted. The only thing that had changed from hiring an attorney is that they submit the package for me, and ask me only for what new or current docs that are requested by the bank. Although it alleviates the stress of me having to deal with the bank directly, if no momentum in the process is gained…what actual benefit is there.

Oh, and they do attend the settlement conferences…two so far with no assertive action by the court. I have asked my attorney to contact the banks attorney and work to make something happen. But nothing new has transpired. I could not afford that financially or emotionally. I did contact another lawyer for advice to see if my current representation was on the right track.

I thought once the courts are in the picture it should expedite this process. This has certainly taken its toll on me and on my husband. I have a follow up call with my lawyer today to discuss what options there are to put us in a stronger position.

This whole nightmare feels never-ending and I feel completely helpless! I am open to trying anything at this point. My wife had become very ill 5 yrs ago with a lifelong illness. We fell behind on 4 months of payments over the past 5 years due to huge medical set backs.

The bank is giving us the chance to apply for loan modification but our home is in pre-forecloses and they stop taking payments which is putting us further behind we are saving every monthly payment. Is this normal? Will we lose our home? Do I need a lawyer? Up above you talk about a partial claim. How do I go about looking in to that?

I do have a FHA loan. My bank has informed my attorney that they are going thru with the foreclosure on my home even after telling us both they were going to work with us and allow me to make payments but no letter. The bank understands the tragedy that took place to me and that I was unable to work for 1 year after being shot multiple times by my neighbor; which is the reason I had an attorney prior to the foreclosure. My attorney believes my best chance at this stage is to file a Chapter 13 Bankruptcy to slow the process down thereby giving time for the land owners insurance to settle the injuries I acquired from being shot multiple times.

He is arranging a meeting for us both to speak to the bankruptcy attorney together…he may be scared of losing his percentage of the insurance claim but is hoping to bring this issue before a Judge I guess.

We have also just found out that my home is listed under web sites that sell foreclosure properties before the foreclosure has been filed or taken place; we also believe the bank has a buyer already which is being looked into.

I would suggest treating the bank the same way as your neighbor treated you. These villains have no sympathy for you. So no pity will be given unto them. Hi Colin. For a judicial foreclosure, your lender will file a foreclosure lawsuit. If you do respond, the case could go to trial or the judge could file a motion of summary judgment. In a non-judicial foreclosure, the lender automatically issues you a notice of default NOD via certified mail, which is also recorded with the county registrar.

This tells you how much you owe, including past due amounts, late fees and foreclosure costs. Once you receive the NOD, you typically have 90 days to repay what you owe or work with your lender to come up with a repayment agreement.

Notice of sale. This notice might be published in a local newspaper and could also be posted on your property. The lender will then prepare to put the home up for auction, which includes setting a date and time for the sale. Leave residence. Generally, you do not have to move out until the foreclosure process is complete, which can take a few months or up to a year or longer. However, once your house is sold, you have to leave the property.

You might have some time after the sale date to live in the home, but that timeframe varies by state. It could be a few days or a few weeks. If you remain on the premises beyond your legal rights, the homeowner or lender will start a formal eviction process.

If the sale of the home yields profits, the lender is not entitled to excess proceeds over the loan balance plus any fees owed for the foreclosure process. In short, any money earned above the balance and foreclosure costs goes to the borrower. In the event that your home sells for less than the balance owed, the lender can file something called a deficiency judgment. This is a lawsuit that requests the lender pay the remainder of the loan amount.

A lender might try to collect the outstanding balance. Some states, however, have anti-deficiency laws or restrict deficiency judgments after foreclosure. Sometimes, the lender pays the taxes in order to sell the home. Taxes are attached to homes—not people—so once the property is sold the taxes are the responsibility of the new owner.

Some states do not allow collections on payments made by lenders after a foreclosure. Up until the time your house is scheduled for auction, there might still be a chance to halt the foreclosure process. The key is communicating with your lender.

The sooner you talk to your lender, the better. Many people feel intimidated by calling their lender and would rather avoid this uncomfortable situation by putting it off, but that can only hurt you in the long run.