Can I Stop Foreclosure Without Filing Bankruptcy?

Can I Stop Foreclosure Without Filing Bankruptcy

Can you stop foreclosure without filing bankruptcy? The answer depends upon how far in default you are on your mortgage payments. If your mortgage company hasn’t yet scheduled a foreclosure auction, you may have options better than bankruptcy. But once an auction has been scheduled, in most cases you cannot stop foreclosure without filing bankruptcy.

Can I Stop Foreclosure Without Filing Bankruptcy - Lee Legal - DC VA MD

If no foreclosure auction has been scheduled

If you are in default but less than three months behind, reach out to your lender and attempt a repayment plan. Your mortgage company may allow you to make up missed payments over several months.

If you are unable to reinstate, request modification options from your lender. Work with your mortgage company or servicer and attempt to get back in good standing.

You must communicate with and respond to your lender quickly. Otherwise, your lender will schedule an auction and modification will no longer be an option.

Once a foreclosure auction has been scheduled

Mortgage companies incur most of the costs for the foreclosure up-front. These costs include attorneys fees, court costs, and publication expenses. Foreclosure is an expensive default recovery mechanism. Once a foreclosure auction date and time and place have been set, your only option to stop it is bankruptcy.

Mortgage companies and substitute trustees will not stop the foreclosure auction unless legally required to do so.

Bankruptcy stops foreclosure without fail

If you want to keep your property, you cannot allow the auction to happen. If a foreclosure auction has been scheduled, you must file for bankruptcy prior to the auction to stop the foreclosure.

Filing Chapter 13 bankruptcy allows you to stretch out your missed mortgage payments over a period as long as 60 months. Maybe you just want some time sell the property. The bankruptcy automatic stay immediately stops foreclosure and gives you time to market the property.

If you want to stop foreclosure without filing bankruptcy, you must act very soon after your initial default. Otherwise, your mortgage company will schedule an auction and your only option will be bankruptcy.

If you are in foreclosure, contact an experienced foreclosure defense attorney to discuss your options.

About Brian V. Lee 507 Articles
Brian V. Lee provides bankruptcy, foreclosure defense, business turnaround, and litigation services to clients in the District of Columbia, Virginia, and Maryland. Brian was the Washington, D.C. state chair of the National Association of Consumer Bankruptcy Attorneys from 2016 to 2018.