Foreclosure - More Difficult to Stop, the Further the Process Goes

By: Nick Adama

When foreclosure happens, many homeowners simply go into hiding for months at a time. A few weeks before the property is auctioned off by the county, they decide to look into options to save the home. But by this time, unfortunately, it may be far too late, or the only good option presented to the borrowers comes from a foreclosure rescue scam. In the end, the borrowers lose even more money.

Thus, it is almost always better to begin fighting foreclosure as early in the process as possible. Even before they have missed a monthly payment, homeowners should contact the bank and inform it of any pending financial hardship. Forbearance plans may be available to lower the mortgage bill, while other monthly expenses can also be negotiated down or eliminated completely. Timing is the most important factor in preventing foreclosure.

But for the borrowers who are already in foreclosure, the further along in the process it gets, the fewer options will be available. A repayment plan may be feasible if only a few payments are missed, but can be too expensive otherwise. A loan modification may be an option early in the delinquency, but after numerous payments have gone delinquent, the chances of obtaining an affordable plan begin to drop dramatically.

Even defending the foreclosure in court presents problems for the homeowners. What, exactly, are they looking for from the court process? If the goal is to save the home, any defense should take into account a reasonable solution to foreclosure that will give the homeowners an affordable payment. Without an affordable payment plan, there is little reason to attempt to keep the property.

This is the case for homeowners defending a foreclosure case or attempting to fight a foreclosure scam company. If there is no reasonable plan to save the home and make payments to the appropriate party, then there is little reason to attempt to hold onto it. There are other goals that may be pursued in the courts in order to fight a wrongful foreclosure or hold a scam operation accountable.

Another reason to bring such a case into court is for the homeowners to obtain money they lost due to a breach of some duty or violation of a law by the lender, servicer, or foreclosure rescue operation. Money damages may be awarded for such violations, and money and equity lost due to a scam can often be won through a judgment in the courts. Numerous courts have awarded homeowners significant damages from foreclosure scams.

Finally, another good reason to resolve foreclosure issues in court is to deter abuse and fraud. Companies that take advantage of homeowners by providing false or blank documents or changing terms at the last second without the borrowers' knowledge should be taken out of business. While the courts are not always the best forum in which to hold banks or politically-connected companies accountable, they do offer one more option for homeowners.

It is vitally important for homeowners to keep in mind their goals when they defend a foreclosure in court or bring a case against a lender or scam company. Without doing this, they can find themselves back in a bad situation, agreeing to make payments on a plan that they simply can not afford. This is another reason borrowers should carefully evaluate their financial situations before moving ahead with any plan to stop foreclosure.

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Nick publishes articles designed to help homeowners understand how various options to delay foreclosure can be used, and which may be most effective for their situations. He publishes about such topics as how to retain the right personal bankruptcy lawyer, the possibilities of a deficiency judgment after foreclosure, how to stop a sheriff sale, and more. Visit his site if you need help understanding how foreclosure and bankruptcy work, and what other solutions you should consider when the bank is trying to take your home:

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