How to Stop a Foreclosure Sherriffs Sale

You can stop a foreclosure sale.  Most lenders will agree to stop the sale to give you an extra 30 or 60 days to work out a solution.  Lenders really want to work with their borrowers because foreclosure costs them time and money, and they would rather see you keep your home.  However, you need to convince your lender that you are serious about finding a solution to prevent your home from going to foreclosure.   

The best advice is not to wait until the property has been scheduled for sale though, and to start negotiations with your lender early so you have enough time to find a resolution.  Keep your lender informed of your intentions at all times.  You don’t want to take a chance by waiting to the last minute and losing your home to foreclosure.

 Options to Stop Foreclosure

 Options that are available to stop a foreclosure sale include:

• Mortgage modification.  Lender modifies your existing mortgage lowering the interest rate and extending the term.
• Reinstatement.  Bringing your loan current and paying any past due amounts, fees or costs
• Forbearance.   Lender agrees to reduce your principal.  Past due amounts are paid over a short period of time with a payment plan.
• Refinance.  Paying off your old mortgage, and obtaining a new mortgage with a lower interest rate and a fixed rate.
• Short Sale.  Selling your home for less than you owe the lender on your mortgage, subject to the lender’s approval.  Walking away owing nothing more to your lender.
• Deed in lieu of foreclosure.   Giving your home back to your lender by signing a deed transferring title to the lender.  Walking away owing nothing more to your lender.   
• Selling your home.  Selling your home and paying off your mortgage.  

You can also file a motion with the court asking for more time.  If you are unsuccessful in stopping the sale, you still may be able to redeem your home if your state allows for statutory redemption after the sale. It’s a good idea to check your state foreclosure laws.

As a last resort, filing for Chapter 13 bankruptcy will stop a sheriff’s foreclosure sale. You can keep your home in a Chapter 13 bankruptcy as long as you enter into a payment plan with your lender and continue to make your mortgage payments on time.  However, if you default, your lender could foreclose.  

Hire a Foreclosure Defense Attorney

Because foreclosure laws are complicated, you should hire a foreclosure defense attorney to help you stop a foreclosure sheriff’s sale.  The attorney is skilled at negotiating with lenders, and is an expert in foreclosure defense law.