My boyfriend’s house is currently in foreclosure. He is six months behind on payments. The sale date is two months away. If he can come up with the past due amount and pay it to the lender, will the foreclosure go away?
That is up to the lender, but usually the would welcome having a loan brought up to date. He will probably have to pay late fees, legal fees and additional interest.
He should call them pronto to work this out.
Yes you certainly can, but if you wait until the sale date is set, you might have to file chapter 13 bankruptcy to stop it. You will get a lot of answers here from sarcastic people saying "pay up your account". But I realize that you wouldn’t be here asking this if you currently had the ability to get current on your mortgage payments. I feel bad for you and everyone else in your situation.
There are some things that you can do, and several options are available. You should check out this blog that was created by an expert in the field of foreclosure law to help consumers who are late on mortgage payments…….
http://how2avoidforeclosure.blogspot.com
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Will filing bankruptcy (7 or 13) stop foreclosure? Do they take the house?
Either way, filing bankruptcy and including your mortgage loan in the petition will temporarily stop any foreclosure proceedings. The automatic stay will be in effect, which will prohibit any creditors from pursing collection activities for as long as the stay is in place. This means that the bank can not move ahead with its lawsuit against you, nor have the house sold at a county sheriff sale.
But where the house goes from there depends on whether you file Chapter 7 or Chapter 13 bankruptcy. There are big differences between the two, and state exemptions and rules may determine which one you best qualify for and what property you get to keep. The best idea is probably to consult with a personal bankruptcy lawyer before moving ahead with either filing, although it is quite possible to file bankruptcy on your own.
A Chapter 7 will allow you to discharge your unsecured debts and secured debts, as long as the creditors have access to the collateral for which the loan was guaranteed. That means that you can discharge your mortgage under this type of filing, but the bank will get to keep the house. You will also not have to worry about a deficiency judgment, as the house will be considered the best the bank can expect and any remaining balance on the mortgage will be discharged.
With a Chapter 13, you will enter into a payment plan in order to get caught up on the debts that you have fallen behind. Currently, bankruptcy judges do not have the authority to lower mortgage balances, so you would have to pay back the total amount you are behind as well as keep up on your regular monthly mortgage payment. For many homeowners, this can be expensive; although, if you make it through the 3-5 year plan, you will get to keep your home. If you fall behind, the bank will most likely have the automatic stay lifted and put the house back into foreclosure.
Hope that helps.
ForeclosureFish
My residence was foreclosed and sold at auction. I had a 1st and 2nd mortgage. The home was sold for a little more than what was owed on the 1st mortgage. I do not know if the 2nd mortgage holder received a dime. I contacted an attorney before the sale and he said that in his 30 years of practice he has only seen one time that the 2nd mortgage holder filed a lawsuit. I figured that since we are in a foreclosure climate they probably won’t come after me. I am now wondering if I do get the 1099 that they are forgiving the debt and that frees me from a lawsuit. It would certainly relieve some stress even though I would owe tax.
it really depends on the state laws where the property is located. If there are deficiency laws in that state, do not be suprised if the 2nd goes after the full deficiency. I would call the 2nd lien holder to see what they intend to do.
