How to Delay Foreclosures With 3 Steps
Delaying a foreclosure may be important to you and your family. There are actions that you can take to do this. You can ask for a foreclosure hearing through the courts if it's allowed in your state. However, this is costly, and, if you can't make your mortgage payments, you probably can't afford an attorney, court fees and deposition costs, among other legal expenses. If you want to delay foreclosure indefinitely or just long enough to find other adequate housing, there are other steps that you can take that won't cost a penny.
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Instructions
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Don't ignore communications from your bank. Call your lender as soon as you know that you can't make your mortgage payment or respond to a letter from the bank the day that you receive it. Explain why you are unable to pay your loan and ask for a financial hardship packet, complete it and return it right away. Your lender may offer a loan modification with payments you can afford to keep you in your home. Alternatively, the more communication you have with the mortgage company, the longer you can convince it that you are not being irresponsible, but genuinely need help to stay in your home.
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Ask your mortgage company for a forbearance. This is where the lender allows you to skip a specific number of payments or make reduced ones until your financial hardship has passed. The payments you don't make will be added to the principal of the loan and you will pay them eventually throughout the remaining term, which may increase your payment amount. Also, your credit report may be negatively impacted by an act of forbearance. If your lender agrees to delay foreclosure this way, ask for the details in writing and read the contract carefully before signing.
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File for bankruptcy protection to stop all collection attempts, including those by your mortgage lender. However, if the foreclosure process is too far along or if your lender asks the court to allow it to proceed, you may not have as much of a delay as possible. Depending on the type of bankruptcy that you file, you may be able to negotiate a repayment plan with the lender for the amount that you didn't pay. This must be approved by the court and will allow you to stay in your home indefinitely as long as you make all your payments on time.
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