Most People Don’t Know That A Foreclosure Doesn’t Stop While You’re Applying For A Loan Modification, But Don’t Get Discouraged
If you are having a hard time keeping up with your mortgage payments and have begun the process of applying for a home loan modification. There is something you MUST know.
Loan modification does not immediately put a halt to the foreclosure process
Just because you are working with your lender to obtain a loan modification, doesn’t mean that the foreclosure process has stopped. Frequently, the lender won’t push the stop button on the foreclosure process even while you are negotiating with them to get approved for a loan modification.
The process of obtaining a home loan modification can take as little as a few days, or a few months. It is often prolonged due to errors with sending in documentation. During this time, don’t be surprised that you will still be receiving papers from the court regarding your foreclosure.
You won’t know that you have stopped the foreclosure proceedings until you receive a formal stay or dismissal from the court.
But, don’t get discouraged, once you obtain your loan modification, you will have successfully stopped the foreclosure.
Try and send all of your documents in the right way, so you can expedite the process. To find out how, read about it here.
To find out what mistakes to avoid, read our post: The Two Biggest Reasons People Fail To Get Loan Mods
If Loan Modification Does Not Work To Stop Your Foreclosure, Don’t Give Up
If you come to find out that you cannot obtain a loan modification, you still have some options to save your home from foreclosure. Chapter 13 bankruptcy may be a good option to save your home from foreclosure. It is a repayment plan which allow you to get current on your mortgage payments. It allows you to pay back all of your missed payments over a 60 month period, while also making your normal monthly mortgage payments. To find out how this could work for you, read our post: How Bankruptcy Can Keep You In Your Home