Facing the potential loss of your home might feel like a hopeless situation, but you may have a chance to save your property by delaying the foreclosure. Doing so can give you enough time to recover financially, save for new housing or even avoid foreclosure altogether.
Below are several strategies you may want to consider.
Challenge the foreclosure in court
In a judicial foreclosure, the lender files a lawsuit against the borrower. If you are facing this type of foreclosure, a potential delaying tactic would be to challenge the suit.
For example, you can argue that the lender failed to provide you with a valid foreclosure notice or violated the terms of the mortgage agreement.
If your defense is strong, you may be able to delay the case and send it to trial. Having strong evidence to support your defense increases your chances of winning the lawsuit. In this case, a “win” would be a judge’s dismissal. This will make the lender start the foreclosure process all over again, which could give you enough time.
On the other hand, a nonjudicial foreclosure does not involve the court. You will need to file your own lawsuit to challenge it.
Apply for loss mitigation
Loss mitigation is where lenders and homeowners work together to find alternatives to foreclosure. Common loss mitigation options include:
- Loan modification
- Forbearance
- Reducing payments
- Repayment plan
- Short sale
- Deed in lieu of foreclosure
According to federal law, the lender cannot request a foreclosure judgment or order of sale from the court, or perform a foreclosure sale if:
- You file a loss mitigation application after the foreclosure starts and;
- You still have over 37 days before the foreclosure sale.
Applying for loss mitigation can buy you some time, but not a lot. However, the foreclosure stops when the lender offers you an alternative to foreclosure.
Ask the court for more time
A judge may postpone foreclosure if you request a delay due to significant financial hardship and/or if you have a lot of equity in the home. For example, you can show the judge evidence of major financial struggles, such as medical bills from a severe illness or a disability that prevents you from working.
Seek legal help
An experienced real estate attorney can help you find ways to delay foreclosure, such as challenging the lawsuit or requesting postponement from a judge. Furthermore, this is not an exhaustive list of delaying strategies, and an attorney can help you find one that has the most chance of success.
