Receiving a notice of foreclosure from the bank can be a terrifying experience for a homeowner. Many people quickly will go into panic mode, frantically beginning the search for a new place to live as they lament the damage that a foreclosure will do to their credit history. If you have received a foreclosure notice, you may think that all hope is lost when it comes to keeping your home—but don’t throw in the towel. You may be down to your last play, but the game is not over.
If you move quickly and decisively, there is a good chance that you can stall a foreclosure and get yourself more time. As an example, we were able to work a miracle last month for a homeowner who was going to lose his house at the beginning of the New Year. The homeowner called us on December 29th – the Thursday before New Year’s Eve – and explained that his foreclosure date was January 3rd. To make it worse, Monday (January 2nd) was a bank holiday. Essentially, we had two days to try to change the situation.
This case was unique in that the homeowner already had submitted short sale forms to the bank himself. Unfortunately, he did not know that the bank requires you have a realtor to arrange a short sale, which is why he was not aware that his house had gone into foreclosure. We explained that it was a long shot to get the bank to reconsider, but in this case, it worked. We were able to postpone the foreclosure until April, which gives us enough time to do a short sale on the house.
Even if you have received a foreclosure notice, often you can still change the outcome. The key is to work with a knowledgeable realtor who is experienced in short sales and can negotiate with the bank on your behalf. Simply put, the bank needs a reason to stop the foreclosure process. If you notify your lender that you have a short sale realtor or a buyer in place, the bank commonly will put the foreclosure on hold.
Ideally, you should not wait until you receive a notice of foreclosure before you take action. If you are delinquent on your mortgage and know that you cannot make the payments going forward, you should consider a short sale to unburden yourself from the loan. Even if you have already received a foreclosure notice via certified mail, it is not too late to negotiate with the bank. Pick up the phone and let us help you turn things around.