Last-Minute Tips on How to Stop Foreclosure on your home in Dearborn MI

Are you on the verge of losing your home?

Foreclosure is certainly a daunting experience for many Americans. The constant worry of possibly losing your house in Dearborn can be crippling. Receiving a foreclosure notice may make you think that you are out of options. Yet, receiving a foreclosure does not automatically mean that you are going to lose your house.

From filing for bankruptcy, working with an attorney, taking loans, to selling your home, there are ways you can improve your set of circumstances before things get to that point. If you are facing a foreclosure, here are things you can do to stop the foreclosure proceedings.

The tips presented in this article are not legal counsel. Please seek legal advice before taking any action.

Ways to Avoid Foreclosure at The Last Minute

Hire an Attorney

If you are determined to slow down the foreclosure, it may be worth it to reach out to an attorney who is conversant with foreclosures for a pro-bono consultation.

The attorney will go through the particulars of your state of affairs and offer you time-tested options for getting the foreclosure delayed or invalidated.  In addition to getting an attorney, you may also want to reach out to a HUD-approved housing counselor, who can help you find the info and support you need to stop foreclosure.

File for Bankruptcy

If time is running out and you want to avoid foreclosure by all means necessary, you can file for bankruptcy. In so doing, the foreclosure will stop right in its tracks, irrespective of timing, owing to an automatic stay that halts the process. This prevents a mortgage company from collecting any dues while the bankruptcy process is on.

The mortgage company can likely file a relief motion during the stay. The court may or may not consent to this, but should they grant the request, the foreclosure will delay for at least one or two months. This will allow you more time to figure out your next move as you explore your options including selling off your property to a real estate financier.

Granted, filing for bankruptcy may affect your credit rating unfavorably. Yet, it might be the only way out toward slowing down a foreclosure, while minimizing or eradicating your debt. That said, you should know there are two kinds of bankruptcy. Chapter 7 and Chapter 13.

Keeping your home by declaring bankruptcy banks on how much income you have. If you wish to keep your home, you are going to want to declare Chapter 13 bankruptcy. This way, you get to retain your home. However, you have to repay all or a percentage of your dues through a repayment plan.

If you just need to buy yourself more time and do not intend to keep the property, Chapter 7 will remove your debt by allowing the court to sell your house to pay back creditors.

File A Lawsuit Against the Lending Company

In case the mortgage company is trying to foreclose on your house using an illegal approach, you could end the proceedings by suing them in court. However, this plan will not work if the foreclosure is following a legal process, because you will have appeared in court by this time. 

To stop or delay the process, you will have to present evidence that will stop the lender from moving forward with the process. You can show proof of the lender making some sort of huge error, not conducting themselves per state mediation requests, not keeping with the required obligations in the foreclosure process, not being able to demonstrate it has the promissory note or infringing on the Homeowner Bill of Rights in your jurisdiction.

Before suing, keep in mind that you may not win, and all you will have gained is a minor delay and lots of cash spent to pay legal fees. Also, if your argument is deemed frivolous, you will end up with lender attorney fees and court fees hooked on to you.

Sell Your Home As-Is

This may be a good choice for you. The step you can take here is to sell your home as-is to a real estate financier like Dearborn-Homes LLC. Foreclosure may be in the offing, but as long as the bank does not own your property, a real estate investor can make you a cash deal and relieve you from worrying about your foreclosure issue. If you take the offer, Dearborn-Homes LLC will purchase your home and let you walk away without having to experience foreclosure.

If you are facing a foreclosure and you are running out of time, consider reaching out to Dearborn-Homes LLC to find ways to improve your situation.

Request for A Loan Modification

Here, your lender will amend the terms of your existing loan to make your payments more convenient.

This solution is best if you have a little more time, but if you do not have time and you have not yet tried it, you should request a loan modification or a similar process to avoid foreclosure.

A loan modification could halt the process because mortgage companies are often constrained from chasing a foreclosure while a loss-mitigation request is still pending (usually called dual tracking). Moreover, if your modification is accepted, the foreclosure will expire and you can choose to start over with a new payment plan.

Of course, if you fall behind in making payments in keeping with the new payment plan, the foreclosure issue could fire up again soon.