How Can You Stop Foreclosure?
Though foreclosure can be a scary and oftentimes confusing time, it is important to know that a foreclosure may be stopped after the process has already begun. A homeowner actually has the entire duration of the foreclosure process (which can sometimes take years to complete), up until 5 days prior to the auction of the home to reinstate their ownership.
Consult with an Attorney
The first step in avoiding a final foreclosure, is to consult with a foreclosure defense attorney or your mortgage lender as early in the process as possible. As soon as you are unable to pay, or foresee that you will be unable to pay a mortgage payment in the future, it’s important to make steps towards rectifying the situation. The earlier in the process you begin discussing your options in stopping or avoiding a foreclosure, the more options you have available to you.
Foreclosure Mediation
The state of Nevada actually requires a step in the foreclosure process that is intended to help the homeowner find out about alternatives to losing their own. From the date of being issued a Notice of Default and Election to Sell, the homeowner is to be given 90 days in which they may participate in foreclosure mediation. This mediation is essentially a meeting between the homeowner and the lender guided towards finding a mutually beneficial alternative to continuing with the foreclosure. Read “What Are Alternatives To Foreclosure?” for a more detailed look at options to present in mediation.
Filing For Bankruptcy
Bankruptcy can be an option for those wanting to protect their home from foreclosure. Through a Chapter 13 bankruptcy, rather than repossessing assets, all debt and outstanding payments are simply bundled into a more reasonable payment plan that is extended over three to five years.
Fulfill all Outstanding Payments
The simplest in theory, yet sometimes hardest to execute is simply repaying the missed mortgage payments in order to become current on your mortgage. Keep in mind, the new outstanding balance will also include any incurred late fees or penalties for the delay in payment. Providing the outstanding balance can cancel the foreclosure at any point in the foreclosure process up until 5 days prior to the arranged sale of the home.
The most important thing to remember when facing foreclosure is to act as quickly as possible, or even preemptively when possible. Do not ignore letters or notices from your lender and do not reject phone calls or other means of contact from the lender. Acting early in the foreclosure process can help ensure the most favorable outcome for homeowners.
If you are facing foreclosure, or worried you may be in the future, contact an experienced foreclosure defense attorney. Schedule a consultation to discuss your specific situation and what options may be right for you. To contact our office, call (702) 998-1188, info@ljlawlv.com, or schedule a consultation online.
For more information on Foreclosure and other related topics, check out our Foreclosure Defense FAQ, and our Foreclosure Defense TV playlist on Youtube.