More and more frequently, mortgage lenders are aggressively
pursuing the FORECLOSURE process once a mortgage
gets even a little behind. Often times, the lender
doesn't even care what the reason for the late payments
have been. Sometimes, it is possible to persuade
a mortgage lender to enter into a "forbearance"
agreement, or installment payment agreement, to
repay the past due amount over a period of time. If
the lender cannot be persuaded to enter into such
an agreement, a borrower can force the lender to
accept payments over time in a Chapter
13 plan of debt reorganization.
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A similar situation may arise where a borrower
does not have his/her real estate taxes included
with the regular monthly mortgage payment.
Generally, once real estate taxes go unpaid
for over a year, the county treasurer will
foreclose on a property in order to collect
these taxes. Some county treasurers are taking
a more understanding approach in collecting
delinquent tax accounts. Under certain circumstances,
an installment agreement can be negotiated
to bring the account current over a period
of time. If no such agreement can be reached,
the taxpayer can force the county to participate
in his/her own plan to repay the county over
a period of 3-5 years. The county usually will
have to accept such a plan of repayment.
FORECLOSURE FAQs
1. WILL THE COURT OR SHERIFF COME TO PUT ME OUT OF MY HOUSE?
2. WHAT CAN I DO TO KEEP MY HOME?
3. WHAT HAPPENS IF I DO NOT RESPOND TO THE FORECLOSURE
WITHIN THE LEGAL TIME DEADLINE?
4. SHOULD I TRY TO SEND MY LENDER SOME MONEY EVEN THOUGH IT
IS NOT ENOUGH TO BRING MY MORTGAGE CURRENT?
5. MY LENDER IS "WORKING" WITH ME. I'M OKAY, RIGHT?
6. CAN I STILL SELL MY HOUSE?
1. WILL THE COURT OR SHERIFF COME TO PUT ME OUT OF MY HOUSE?
No, so long as your home has not yet been sold
at a Sheriff's auction. Until this happens, remember
- that home belongs to you subject to any other
valid mortgages or liens on the property.
2. WHAT CAN I DO TO KEEP MY HOME?
Basically, there are many steps you can take even
though you may be way behind on your mortgage payments
- so relax, and take a breath. It is possible to
bring the mortgage current with a lump sum payment,
an installment agreement over several months, or
a repayment plan which can last from 3-5 years!
3. WHAT HAPPENS IF I DO NOT RESPOND TO THE FORECLOSURE WITHIN THE LEGAL TIME DEADLINE?
Essentially, the case is over. The lender will then
take steps to ask the Court for permission to sell
your home, advertise the sale in a local news publication
and have your home sold at a
public Sheriff's auction.
4. SHOULD I TRY TO SEND MY LENDER SOME MONEY EVEN THOUGH IT IS NOT ENOUGH TO BRING MY MORTGAGE CURRENT?
No, unless you have a written agreement with the
lender that it will reinstate the mortgage, and
dismiss the foreclosure suit, if you do so. If there
is no written agreement, hold onto these funds until
such an agreement is in place.
5. MY LENDER IS "WORKING" WITH ME. I'M OKAY, RIGHT?
Wrong. This is not to say that you should not keep
an open line of communication with your lender.
However, the fact that you are "working" with the
mortgage company does not protect your legal interests.
A formal response to the lawsuit must be filed with
the court before the legal response deadline expires.
6. CAN I STILL SELL MY HOUSE?
Yes. Again, until your home is sold at a Sheriff's
auction, it belongs to you, and you can sell it.
However, the sale price, in most situations, must
be sufficient to cover the entire loan amount,
the loan arrearage and other costs incurred by
the lender in the foreclosure, and any taxes or
other liens which are on the property.
Please note that the above advice is very
general in nature. Each case is different, and must
be evaluated by a qualified professional in order
to determine what is the correct course of action
in your particular situation.
For more information on foreclosure, call Spiroff
Law at 614/224.2104.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. |
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