Please know you have gotten all of the advice you need, Here is what is most important for you to know:
1. Talk to your lender to find out the exact amount you owe. If you want to pay it, that is your call.
2. Using an attorney ( or other 3rd party) to negotiate a loan mod does not ensure success. In some cases it lowers your chances as the lender wants to work with the home owner. Also know, it is illegal in California for 3rd party negotiators to take fees up front from the home owner.
3. Loan mods depend very much on the investor that holds your loan. In most cases, the lender is the servicer for the loan and the investor is who purchased the loan. Why loan mod success is so low is the investors terms do not allow modification or allow minimal modification.
4. Most lenders/servicers make the process difficult so the home owner will stop calling. Sad, yet accurate according to many negotiators we know.
Best of luck to you, best advice is to do your homework as information is your best asset in this process.
I know this subject very well. I am very active with short sales and similar real estate transaction.
This is how it works. Paying the arrears will stop a foreclosure sale, if within the timeframe specificed by the state's foreclosure law. For example, in Oregon, you can pay the arrears as late as the 5th day prior to the sale. All states are a little different. But there is more to it.
Unless you can keep paying the mortgage after bringing the arrears current, you should analyze the situation very well. Most of the time, the loan modification offers and stopping foreclosure after taking the arrears are just part of the collections process. If you can't fulfill the arrangement, and most people can't, then the bank forecloses with more money collected than otherwise. So for them it is a great collections strategy.
If you can't pay or will be unable to fulfil the arrangement, you may want to postpone the foreclosure as much as possible, and then to a couple of last minute foreclosure stops. This will give you a breather. You will be able to save money by not paying rent or mortgage.
I have an ebook about this. Go to http://www.foreclosurestopbook.com
A word of caution: Simply talking to the bank and receiving verbal assurance that the foreclosure will be stopped to give you time to work things out is extremely risky and will not work unless the lender puts it in writing which they will seldom do.
The bigger question here is what is in your best interest. As others have pointed out, obtaining a loan modification is a long shot. It may well happenâ€¦.but there are no guarantees. Stopping the foreclosure will buy you time to negotiate the loan modificationâ€¦.but you will be back in the hot seat if you do not continue to make payments and the loan modification does not come through.
Yes, I agree with Cory. If you are serious about keeping your home, I would find a way to get current with the bank and then start working on the loan modification. As you can see by the responses below, loan modifications have a pretty dismal success rate, but it's definitely worth a shot. You just don't want to risk your home.
There are so many questions I would ask you before giving any advice. I like to get the big pictureand know the whole story 1st. I hate to see so many people throw good money after a bad investment when it just does not make sense. What you decide today is going to affect you for the rest of your life...make sure you know all of your options and make the best decision for YOU! Good Luck Seth~
Good luck to you.
Ask the lender to work out a repayment program. This may stop foreclosure if you can stay on it. It will amount the past due amount divided over a set time period and added to your current payment.
This is more expensive than a loan modification monthly, but your chances of getting approved are greater than the loan mod and if you can bring it current.
Whatever you, contact your lender and discuss your options. If you can't bring the home current or fall behind again, start to look into a short sale. A short sale is not a perfect option, but is better for most than a foreclosure.
Can paying the past due mortgage payments (plus foreclosure/attorney fees, inspection fees, advances, late fees, etc.) cure the default and stop the foreclosure process?
If a borrower brings a loan current at least 5 days prior to the trustee's sale (auction), the lender is obligated to accept the payment and stop the foreclosure process. If a borrower elects to bring the loan current, it is imperative the total amount due is requested of the lender by the borrower. In other words, don't try to guess how much is needed to cure the default.
I will leave it to others to offer their opinions on the whether doing so is prudent.
If you have the money to take care of the Deficiency, they MUST listen to you.
This would separate and apart from the Loan Modification, which they do not have to listen to you.
Money talks, and Federal regulations require them to take your money.
But if you cannot afford the old monthly payments, you might think about what you are doing.
A Real Estate Attorney might be the best course of action.
Good luck and may God bless