After missing your mortgage payments for three to six months, you can expect your lender to initiate foreclosure. There is usually a 120 days period by which your lender is mandated to wait before initiating foreclosure. It would be best if you maximize this period to seek out alternative solutions to stop foreclosure. If you fail to take productive steps during this process, your home will be foreclosed. Your lender will keep you up to date about the state of the foreclosure. Once a foreclosure sale date is set, you will be notified, and this is when it gets more complicated to stop foreclosure. However, it is not impossible; you can still save your home even at this point.
There are not so many options to use at this point because you are already out of time. Most lenders won’t be willing to negotiate loss mitigation alternatives with you at this point. But you are not without options. There are two main alternatives homeowners uses to stop foreclosure auction:
The foreclosure process is usually stressful and costly for most lenders as well, so if you can find a buyer for your home, your lender will be glad to accept your offer. Usually, selling to an investor can come in the form of a short sale: where the home is bought for less than you own on the mortgage. However, if you can get your lender to agree to it, you will sell your home on your terms. You will also be able to prevent forceful eviction and pack out at the agreed time.
Filing for bankruptcy will help you stop foreclosure auction even if it’s a few hours away. You don’t want to wait that long before you take action, as you will have incurred unnecessary charges. Filing for bankruptcy helps you get back on track with your mortgage payments or clear your debts, depending on the chapter you filed.