This article provides a road map to help you through the procedures to remove your home from the foreclosure process. Specific procedures are dependent on the laws of the state where the home is located. The procedure for ending the foreclosure process is simple where the loan default is cured by bringing the loan current. When that is not possible, the key to getting out of foreclosure is reaching a successful agreement with the lender designed to modify the terms of your loan so that it is no longer in default and the foreclosure process is dismissed.
Halting Foreclosure: Loan is Brought Current
Contact your lender (or the company handling the foreclosure), and ask them to provide a written beneficiaries statement reflecting the total amount of money required to cure the default.
Pay the full amount the lender requests to cure the default. The lender will likely require that the funds be either in the form of a cashier's check or bank wire.
Once the lender has received and applied the funds to satisfy the default they are generally required (depending upon state law), to record a rescission of the default, or a dismissal of the foreclosure complaint, eliminating the existence of a pending foreclosure on your home.
Monitor the dismissal and removal of the foreclosure proceeding, to insure that the lender has met their obligation to remove your home from foreclosure. If the lender has not taken these steps in a reasonable time, provide them a written demand to do so. If they fail to do so, you may need to seek a court order requiring that they take this action.
Halting Foreclosure: Loan Modification is Accomplished
Contact your lender as early as possible to notify them of your need for a loan modification. This should be accomplished as early as possible after your home has entered the foreclosure process.
Be honest with your lender, providing adequate information that supports your desire for a loan modification. Include documentation that supports your desire for the modification and your ability to meet the payments of any modified loan.
Recognize that loan modification can be a challenging and slow process. It may be in your best interest to retain the services of a professional to assist you in this process. Be careful in your selection, carefully reviewing qualifications and performance history of any company or individual claiming to be an expert in this area.
Once you have reached an agreement with your lender regarding the terms of a modification, have competent legal counsel review the modification documentation to insure that it meets your objectives before signing.
Once both you and the lender have signed the modification agreement, be sure the lender drops the foreclosure action by filing a dismissal or rescission of the foreclosure. If the lender has not taken these steps in a reasonable time, provide them a written demand to do so. If they fail you may need to seek a court order requiring that they take this action.