How to Stall Foreclosure Proceedings

Is it possible to stall foreclosure proceedings?

Whether or not you can stall foreclosure proceedings depends on a number of factors, like the type of foreclosure proceedings allowed in your state, how far behind you are on your payments, and how willing your lender is to make alternate payment arrangements. Whether you simply want to buy a bit of time to live in your house until you find someplace new, or whether you need time until you can come up with the money to pay your arrearages, here are some steps that can help you stall foreclosure proceedings:

Instructions

1. Use the "produce the note" strategy. This strategy has become popular lately as a way to stall foreclosure proceedings. The way it works is by forcing the lender in a court proceeding to prove that you owe the money by coming up with the original promissory note. Because a loan may be repeatedly bought, sold, and serviced by a number of companies, lenders sometimes have difficulty producing the note. This strategy may buy you some time, but in can only be used in judicial foreclosures (court proceedings).

   Many states have a non-judicial foreclosure process, in which properties can be sold at auction without starting a lawsuit against you. The only way to use the "produce the note" strategy to stall foreclosure proceedings in a non-judicial foreclosure is to file a lawsuit against the lender demanding that they produce the note. This is risky, since you may risk sanctions for filing a frivolous lawsuit, not to mention the expense of filing the suit itself. You may also have difficulty finding a lawyer who is willing to assist you with this kind of risky suit.

2. Declare bankruptcy. Even if you file just days before the property is to be sold at auction, the foreclosure process will generally be stalled for a few months while the bankruptcy is pending. Bankruptcy can help you save your home if you discharge other debts or restructure a payment plan in a way that allows you to make your mortgage payments. On the other hand, if you still won't be able to make your house payments, using this tactic to stall foreclosure proceedings can buy you some time to save up enough money to move to a rental property.

   Filing bankruptcy is a step that should not be taken lightly, since it has far reaching consequences. If you are considering declaring bankruptcy to stall foreclosure proceedings, it's important to consult with a qualified attorney in your jurisdiction.

3. Work with your lender to modify your mortgage loan. If you are in default or in the foreclosure process due to a temporary hardship, such as unexpected job loss or illness, but you expect a return to a sustainable level of income, your lender may work with you to modify the terms of the loan so that you can get caught up on payments and save your home. The goal of using this strategy to stall foreclosure proceedings is to permanently restore your ability to make your mortgage payments.

Resources

• Save Your Home From Foreclosure with Mortgage Modification