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Can making up missed mortgage payments stop a foreclosure?

Asked by Voices Member, Tue Apr 27, 2010

If a homeowner is behind on payments to the point that the county has filed an Notice of Election & Demand (NED), can the homeowner make up the delinquent amount and stop the foreclosure process?

Could it be that if the property is vacant, the homeowner in foreclosure could sell the property on a lease option or contract for deed and collect a large enough downpayment to cure the missed payments and rent the home to someone who is able to make the mortgage payments while avoiding the foreclosure auction?

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Hi Andrew: To get the most authoritative answer about a specific situation, I would suggest you call the Colorado Foreclosure Hotline at (877)601-HOPE or (877) 601-4673. This is a free service. This will route you to a HUD-approved counseling agency in your area. Website is at: The website claims an 80 percent success rate in helping homeowners avoid foreclosure.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
1 vote Thank Flag Link Tue Dec 20, 2011
You have to established a re-payment plan (sort of like a loan modification program where you negotiate small amounts being re-paid towards missed payment) - a plan that will be official between the lender and the borrower, and this plan has to eliminate (stop) foreclosure law suit. A large downpayment to cure missed payments might be required.

Best, to get a more specific legal consult (the first consult is normally free, and you can visit a couple of attorneys to gain more knowledge before making any decisions).

Just make sure that the law suit is have to really know that it is done properly, in accordance with your state law.

Good luck!

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Fri Apr 20, 2012

I would go to the Colorado Foreclosure Hotline for each specific situation, speak with the bank, and get legal advise if you are not crystal clear as to what your rights are. It is not always as simple as making up the back payments. There are situations where the bank will not allow the homeowner to make up the payments or you may find that there are exhorbitant legal fees, liens, and other charges involved. They can also take the homeowners money in certain situations and continue with the foreclosure. You may be throwing in good money after bad. Each bank and each loan is specific.

Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Tue Dec 20, 2011
I would recommend negotiating this with the Lender before spending a penny:
I wouldn't trust the Lender to put the payment in the correct column.
0 votes Thank Flag Link Tue Dec 20, 2011
of course. bringing the mortgage current will stop a foreclosure
0 votes Thank Flag Link Thu Dec 8, 2011
HI Andrew, They can try to work out an agreement with Their lender and or file a Notice of Intent to Cure with the public Trustee Office. This will give the homeowner the amount needed to pay and terms required to cure the default with the lender and keep their home. They can also discuss a Modification with their lender which can reduce the payment and bring them back on track as current with a new payment plan and in many cases just a one month modified payment made to the lender. Even if the NED has been filed and or they have already had a modification, most lenders will still work with them. I have had clients do as many as 3 modifications. I don't recommend Title Transfer with Contract for Deed. The homeowner should consider getting legal advice before considering this option as there are many legal issues involved with type transaction that could place the homeowner in much worse position than they are already in. I would strongly recommend that the homeowner contact a HUD counseling agency for proper advice or speak to a Certified Home Retention Counselor. Call me if you need any further help with this client. I am a Certified Home Retention Counselor.
0 votes Thank Flag Link Mon Oct 11, 2010
If you can pay the delinquent amount, late payments, legal fees and any other costs or fees, then you can stop the foreclosure, in fact you can even settle after the auction, basically any time before the title is transferred . Any thing less than the full amount is considered as short and it opens the decision to the lender that's what the others are referring to.

Good Luck
Bob Patrick
Buy a home after foreclosure expert
0 votes Thank Flag Link Tue Apr 27, 2010
You should be able to reinstate the account with paying all outstanding fees and payments. This will get you current on your mortgage and stop the foreclosure action. However, if you wish to sell the property, you need to be careful because the lender typically has a due on sale clause in the mortgage. The due on sale clause allow the mortgage company to foreclose if the property transfers without their approval and they will not typically give you approval.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes Thank Flag Link Tue Apr 27, 2010
It really depends on the lender. We have several short sale listings right now, where the owner tried to work with the bank after falling behind on payments, and the bank would not/could not work with them. It sounds crazy, but the foreclosure and short sales process does not always follow logic.

Marianne Bandy
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"

303-746-7799 cell
Web Reference:
0 votes Thank Flag Link Tue Apr 27, 2010
Robert is right, Call the public Trustee's office and see what they say about this. Please do let us know the answer to this question. There are so many rumors or ideas how this may work and it seems good on paper.

0 votes Thank Flag Link Tue Apr 27, 2010

Good to see you again. My thought is that you could speak to the lender and then go down to the Public Trustee's Office and pay 'back payments, interest, lawyer's fees' and any other liens that may be of record. At that point, I think the bank could stop the foreclosure. Although a rare occurence, I will be interested to hear from someone who has done this or who has worked with someone who has stopped the foreclosure at this stage. Also, this is a good question for the Public Trustee to answer.

Robert McGuire ASR
Real Estate Broker/Consultant
Your Castle Real Estate
Direct: 303-669-1246
0 votes Thank Flag Link Tue Apr 27, 2010
Hey Andrew, You may need to get in touch with a Real Estate Lawyer or ask your broker these type of questions. This sounds good but who would buy a foreclosure on a lease option?
0 votes Thank Flag Link Tue Apr 27, 2010
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