How to Stop Home Foreclosure

Video Transcript

"Hi this is Matt McKillen with Innovative Financial Group. The question posed to me today is how do you stop a home foreclosure? Well there's a couple of ways to actually stop a foreclosure action. One is to basically cure the loan and when I say cure the default what I mean is that whatever payments you're behind you bring those current. A lot of times there will be additional legal fees that you have to pay and those are the attorney's fees that the bank incurred to process the foreclosure against you. Also there may have been property taxes or homeowners insurance that were advanced on your behalf when you fell behind. So if you have the ability to bring all that cash in to bring the loan current and cover the fees then that will stop the foreclosure. Another way to stop a home foreclosure or at least stall it is by filing bankruptcy. If you file a chapter 13 bankruptcy, it's basically called a wage earner plan, it freezes the foreclosure action on your home and in turn what happens then is that you go to the trustee in the bankruptcy court looking for a plan to bring all your accounts current. Now this could be your home, it could be if you're behind on your car, your credit cards, it's another viable way to stop the foreclosure so that you can work out a term of repayment to get back on track financially. Again my name is Matt McKillen, I'm with Innovative Financial Group."