What is the best way to stop a foreclosure?

Asked by Adiba Maloof, Anaheim, CA Mon May 23, 2011

My home is about to be foreclosed on and I am wondering how I can go about stopping it? Is this even legal?

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19
Emily Knell, Agent, Huntington Beach, CA
Tue May 24, 2011
Hello Abida,

I see you're getting a LOT of varying answers here which are probably making you more frustrated & confused. I see answers on here from Filing bankruptcy, to just paying your delinquent balance to an offer of staying in your house for free for 3 more years, which the bank will never allow to happen.

It's difficult to answer your question without knowing more details. Aside from filing a bankruptcy tomorrow, the only way I can postpone a scheduled auction is by submitting to your mortgage holder a Short Sale package ( IF your home is underwater). If your home is not underwater, I would need to get in contact with your lender right away to let them know that your house is on the market & they will be paid in full at closing.

Please email or call me directly. There are other things I'd like to talk to you about when it comes to a short sale, things like how I get the bank to release you of your mortgage liens as Paid in FULL.

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
Short Sale Expert
1 vote
Gladys Viru…, Agent, Scarsdale, NY
Mon May 23, 2011
Pay the balance owed if you can , if not try getting a mortgage modification from your bank. if that doesn't work seek out a great agent to do a short sale for you. Good luck!
Call me if you need me

Gladys Viruet
Keller Williams Realty Sales Associate
Mobile: 914 589 2455
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Email: Gviruet7@aol.com
WEBSITE : http://westchesterpropertyspecialist.com
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2nd largest Realty in the country!

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1 vote
Sam Rodriguez, , Orange County, CA
Fri Jan 18, 2013
Foreclosure affects everyone. California is a “Trustee Foreclosure State”. The informality of non-judicial foreclosures, futile loan modifications, and the lightning speed of post-foreclosure evictions have created an atmosphere of desperation for the homeowner. Furthermore, the complex legal environment is in flux, plagued with misinformation, and riddled with false silver bullets such as "produce the original Note."
I don’t have the ability to explain each of these processes in detail on this forum but please click on the links provided for more detailed information on each of the options.
With your sale date fast approaching, it is important for you to know your options:

1) Declare a bankruptcy for the purpose of delaying the sale (or you may to go through with it )
2) File a civil action and get a Temporary Restraining Order.
3) Develop a pro-active foreclosure litigation strategy.
4) Challenge/Subpoena the Trustee – Trustee Sale Verification.
5) Check if your loan has been Securitized and if it is, consult with an attorney who completely understands it.

Some Key Elements to Consider.
1. Securitization : The Securitization Process and how it works
http://surmountmortgageservices.com/securitizationreport/sec…

The most important and difficult issue is proving the true status of the original obligation ("Note"). The only way you can determine the true status of the Note is through a fundamental understanding, analysis, and application of the securitization process.

2. Securitization and how it affects you
http://surmountmortgageservices.com/securitizationreport/our…

3. How does the Trustee Sale Process Work? http://surmountmortgageservices.com/foreclosure/foreclosurep…


My goal is to empower the homeowner with innovative tools and strategies to navigate through the foreclosure and post-foreclosure process. If you have found any of the above information to be useful, please contact me by phone or email. I will be happy to speak with you about your individual situation.
0 votes
Ann Grigoryan, Agent, Glendale, CA
Mon Jan 30, 2012
Mutual Agreement. The most common postponement reason it simply indicates that the homeowner and the lender have agreed to postpone the sale. This may be the result ofa simple call by the homeowner requesting a little more time, or a more formal agreement like forbearance. Many homeowners do not realize when they enter a forbearance agreement that the foreclosure process continues; and if they miss an agreed upon payment, the property can be sold on the next scheduled sale date with no further notice.
Bankruptcy. When a homeowner files for bankruptcy protection, it puts an automatic stay on all debt collection actions, including foreclosure. Note that bankruptcy does not stop foreclosure, as many believe. Instead, it simply delays the sale of the property until the homeowner resolves the debt, or in many cases, the lender gets approval from the bankruptcy court to continue the sale - an order granting motion for relief from stay. The bottom line is that a home is a secured debt, and the lender has the right to take the security (the home) if the homeowner lacks the ability to pay the debt as agreed. Bankruptcy is only an effective tool against foreclosure if the homeowner will have sufficient income to pay their home loan and make up past due amounts once the bankruptcy plan is completed.
Beneficiary's Request. A simple decision by the lender (beneficiary) to postpone the sale. Could be for any reason, including that they simply aren't prepared to take the property to sale, or because they have reason to believe they are about to be paid (a closed escrow for which they have not yet received payment, for example).
Trustee's Discretion. A simple decision by the trustee to postpone the sale. The most typical reason is that they are unable to reach the lender for sale instructions.
Operation of Law. Fairly rare, but used when a court orders the postponement of the sale. The most likely reasons for a court to make such an order would be in cases where there is a plausible allegation of fraud against the lender, or there are questions of material fact around the right of the lender to foreclose.
0 votes
Debbie Brown, Agent, Laguna Beach, CA
Mon Jan 30, 2012
There are several ways of postponing your sale. Most of them require forward thinking and time. If your home is set to sale tomorrow, you only have a couple of viable ways (ie: bankruptcy) to get the job done. Another point I would like to make is that entering foreclosure does not mean your house will sell instantly. Foreclosure is a process and it takes the bank time to move you through this process. In CA, since we are not a judicial foreclosure state, the process consists of a series of letters and notices that inform you as to where you are in the process. You will first receive an intent to accelerate letter followed by a Notice of Default, some further threatening letters and then a Notice of Trustee Sale. Once they set a sale date your options are limited. My advice is to not waste time after the Notice of Default. Get your self a plan and follow it. It will take a lot of the stress away. Most people pretend there is not a problem until it is too late and then act only to find the window of time has closed.
Gice yourself a chance and contact a professional. Be careful as there are a lot of scams. HUD counselors are free but not always proficient. Their number is 888-995-4673. This will get you some info. The other options include modifications and short sales. The answer is different for every one and highly depends on your plans for the house. Call if you think I can help or give HUD a call at the number I provided.

Debbie Brown
Orange County Real Estate Group
orangecountyrealestategroup.com
888-863-7480
0 votes
Bob Phillips, Agent, Rancho Santa Margarita, CA
Fri Jan 27, 2012
Wow! I wonder what ever happened to Adiba?

I just looked up Lighthouse and they are rated D- by the BBB.

I looked up Adiba's name, and there are no records of anyone by that name, presently owning a property in Orange County.

Perhaps Lighthouse wasn't able to get Adiba the "extra" 36 months, that Jeff King suggested they could.

Come on, Adiba - give us the scoop. Did Lighthouse help you? Or not?
0 votes
Cj, Both Buyer And Seller, 95129
Fri Jan 27, 2012
As previously mentioned, there are varying replies. At the end of the day, what matters the most is what you can legally do and financially feasible. I can get you help to get FREE legal advice from a top law firm in CA.

Let me know if I can help you. Refer to the link below.
0 votes
Adiba Maloof, Home Owner, Anaheim, CA
Wed May 25, 2011
Thank you much for all this response. I have decided to work with Lighthouse. They gave me the most helpful advice and they can help me most.
0 votes
Demi Devaney, Agent, Newport Beach, CA
Mon May 23, 2011
Adiba,

Hi, I am a local agent. the only way to stop foreclosure are 2 ways:
1. apply for loan modifications
2. Short sale
Loan modifications is income prequalifications but at least it gives you time
short sale gives you more options to stay in your home for awhile, mostly it takes 3 to 6 months and the benefit of it is that if you qualify for the HAFA program, you will recieve a $3,000 move out credit.

Hope that helps and if you have any more questions, please feel free to call me or email me. If you need help call me and I live close by.

Demi Devaney
demitherealtor@yahoo.com
Certified REO,CHS,PROBATE,SHORTSALE AND FORECLOSURE SPECIALIST
714.723.2518
0 votes
Ingrid Ski R…, Agent, Mission Viejo, CA
Mon May 23, 2011
Hello Adiba,
Yes, There are several ways to stop a foreclosure, depending on where your at in the process will deem what action would be benefical to you. I have stopped foreclosures on several of owners homes. What is your situation? There is no generic answer and would need to know more about your situation and then you would decide what is best for you given all the options to choose from.
The obivious answers: Bankruptcy you need to know more about how to and why you may attempt or want this, Of course pay the bank money which you may not have. Everyone has a unique situation they are in and their reasons and what they want to accomplish in the short term and long term.. It is all about what you want.
Ingrid Ski Realtor
0 votes
Gerard Carney, Agent, Spring Hill, FL
Mon May 23, 2011
Pay your mortgage on time every month until the last payment is paid. This is the only absolute way to avoid foreclosure!
0 votes
Steven Ornel…, Agent, Fremont, CA
Mon May 23, 2011
Adiba:

If you would like to learn more about the Short Sale process the CA Association of Realtors® have created http://www.shortsalescalifornia.org/ to allow homeowners to research this option.

Best, Steve
0 votes
Michael Harr…, Agent, Orange, CA
Mon May 23, 2011
It is happening to millions of people across the country now and most are afraid to ask for help. This is understandable as there are a lot of companies that try and take advantage of you if you are in this situation.
What i always advise my client to do first, is ask an attorney what is best for you. Some of the alternatives he may suggest would be the following: Call the bank and ask them what options they might offer you; if you qualify, they may offer you a loan modification, which might entail a rate reduction or a negotiable payback alternative; if you don't qualify, you might want to consider a short sale as your second option,. Here you would list your house with a real estate agent (make sure they are experienced in short sales) and they will try and sell it at market value. When they get an offer, they will send it to the bank who has to approve the price and the buyer. If you have a second mortgage, you have to get their approval also. Either of the last two, the loan mod and the short sale have an additional option of going through a government program called the HAFA program or "Making Homes Affordable", instituted by President Obama to help troubled homeowners. The final two options are usually the worst-a deed in lieu or an actual foreclosure. The deed in lieu is where you cooperate with the bank and sign the property over to the bank. If you do this, you may be able to negotiate with them on how it will affect your credit and also the financial implications (all of these options may affect your credit and that is why it is important to get an attorney's opinion before you make your choice.) In most cases, the best option is a loan mod, second is the short sale, third is the deed in lieu and last is the foreclosure. There are a lot of pluses and minuses you have look at, so don't procrastinate, you need to really get going on this before it is too late. Best of luck!!!
0 votes
Willy Olsen, , Claremont, CA
Mon May 23, 2011
Best way to stop a foreclosure is to pay the delinquent amount owed, then contact an agent to list the home as a short sale. Loan mod. is out of the question since you already have defaulted and the lender will not trust that you will keep up on any future payments.
You can contact me directly if you like to make your home available.
Most of the time a short sale is the best plan of action.
Short Sale with legal representation at no cost to you.
0 votes
TheRECoach, , Orange County, CA
Mon May 23, 2011
Too many answers, too little time! I know you are in a tight spot Adiba, but that is really a "generic" question...what I can tell you is 2 of my Agent just completed a sale in Seal Beach for a guy who was 5 days from having his house sold on The Courtroom steps!!! They not only stopped it, but they also sold the house for a profit...wasn't even a Short Sale when they were done =) Read the story of the transaction here http://bit.ly/mbbaWv

Best of Luck, I know this really sucks, and I hope it all works out for you =)
Web Reference:  http://CBCoastalAlliance.com
0 votes
Bonnie Hart, Agent, Mission Viejo, CA
Mon May 23, 2011
Call an agent and list the house on a short sale and get a buyer. The listing agent can stop the trustee sale.

Bonnie Hart
949-201-6887
Keller Williams
0 votes
Ryan Smith, Agent, Murrieta, CA
Mon May 23, 2011
Hello Adiba, I'm going to state the obvious here. The quickest way to stop a foreclosure is to pay the amount you are behind on the mortgage and bring it current. I'm not sure of your financial situation, but this may not be an option. Do you plan to stay in the home? Have you been denied a loan modification? How is your credit other than being late on your mortgage. You have a few options and I would like to extend some help. Please reach out to me through my profile and I'll give you some options. I may even be able to help you for free...no cost to you.

Good luck!
Web Reference:  http://www.ajsocal.com
0 votes
Sammer Mudaw…, Agent, Costa Mesa, CA
Mon May 23, 2011
If you are about to be foreclosed on, it most likely means the process has been in progress for many months. In either case, since you are about to be foreclosed on and the bank is most likely acting as a debt collector at this point, the best advice you can acquire will be from an attorney. Depending on how far away the foreclosure date is, it may be possible to assess your situation and see if short selling is an option. In most circumstances, if a short sale offer is received on a property that is being foreclosed on, the lender will suspend all foreclosure proceedings.

If short sellingmay be an option and you would like to discuss, please contact me.

Sammer Mudawar, Broker
RE/MAX Prestige
714.660.4008
Web Reference:  http://www.prestigesocal.com
0 votes
Joe Homs, Agent, Laguna Hills, CA
Mon May 23, 2011
Adiba,

The quickest way is to file for bankruptcy, but that is pretty radical. I would go to http://www.shortsaleapp.com to get some information on how to do a short sale on your home. If that does not answer your question give me a call and I have some other legal ideas for you.

Joe Homs
Realty Partners
949-625-4533
Web Reference:  http://www.joehoms.com
0 votes
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