How to Stop a Bank from Foreclosing

Even if your bank has instituted foreclosure proceedings, you can stop bank foreclosure.  There are various other options available to you.  The worst thing you can do is to ignore a notice of default or foreclosure filing notice and correspondence from your lender.  Call your lender and explain your financial situation, and ask them what other options are available to you.  It is also recommended that as soon as you realize that you are not going to be able to make your payments, you should seek legal advice from a foreclosure defense attorney. 

Foreclosure Options

The following are a list of foreclosure options that will stop bank foreclosure:

• Mortgage modification.  Lender agrees to modify the existing loan terms to lower the interest rate and extend the term so payments are affordable.
• Refinance to a lower interest rate and a fixed rate mortgage if you have equity or qualify for the government HARP program.  
• Short Sale.  Sell your home for less than what you owe your lender, with their approval, and negotiate a full satisfaction of your mortgage debt.
• Deed in Lieu.  Return the home to your lender, transfer the deed in their name and walk away owing no more money to your lender.
• Forbearance.  A reduction in principal or a payment plan to catch up on late payments.
• Reinstatement.  Pay all payments current, including interest and costs.
• Putting your home up for sale if you have equity to pay off your mortgage balance.
• File for bankruptcy protection and enter into a payment plan under Chapter 13.    

You may also be able to redeem your home after a foreclosure sale by paying all past-due payments, costs and fees. However, not all states allow redemption so you should check your state laws.

Foreclosure Defenses

Your foreclosure defense attorney can review your foreclosure documents and your mortgage documents to determine what are the best legal defenses to stall the foreclosure until you can work out another solution with your lender, and/or get the foreclosure dismissed.  If the attorney finds any violations of lending laws, the attorney can use that information to get the lender to cooperate and find a mutually agreeable solution for you to save your home from foreclosure.  Lenders are subject to stiff penalties and fines for violating lending laws.  They would rather work out a resolution with you under those circumstances.   

Speak to a Foreclosure Defense Attorney

Since time is of the essence, you need to speak to a foreclosure defense attorney right away. The attorney can help defend you in a foreclosure proceeding, and negotiate with your lender.  The attorney is experienced in foreclosure defense law, and can help you save your home from foreclosure.