Answers
Foreclosure on moms house?
we live in wayne county michigan. 2 days ago we found a note on the door that said our house was going up for sherrifs sale in approximately 30 days. what can we do to prevent the sale / foreclosure of our house. if we pay the past due amount does this stop foreclosure.......PLEASE HELP.........this is serious so please no smart remarks........JUST SOUND ADVICE
Best Answer:
Find out what needs to be paid and pay it. Call your bank! Otherwise you are out.
Answers:
As a general rule paying all the back payments, fees and legal charges will 'cure' the foreclosure. This means it stops.
Some of the time the lender will refuse payment and demand that the loan be paid back in full.
Contact the lender and find out. There are both regulations and what your contract says.
Be quick as some charges are going to increase each day that passes or when certain milestones are reached.
I would consult a lawyer to identify what the sherrif's office truly can or cannot do. I would do this immediately, then make a decision based on what you learn.
If she declares bankruptcy immediately you may be able to "buy" some time.. Check with a bankruptcy atorney first about the MI laws - they vary in each state) but in some you can stall off the foreclosure from several months to several years while you figure out what to do.
Foreclosure happens after 3-6 months of being behind on the mortgage. Can you raise that much in 30 days?
Try www.CashCall.com to get a loan by Wednesday and save the house.
Meanwhile, get a few extra jobs to save your Mom's home.
If you pay back the arrears, then yes, the foreclosure will stop and the loan will be reinstated.
You can't just pay back the missed payments, though. The bank has probably added late fees, attorney costs, interest, etc. This can cause the amount you owe them to increase dramatically. Find out from the lender how much they need from you to reinstate the loan.
Alternatively, you could try to work out a repayment plan with the bank, which may allow you to pay your normal payment plus something extra every month to get caught up. This can be expensive and you'll have to qualify for the program, but it may be worth looking into.
Michigan has a six month redemption period after the sheriff sale of the property. This means that for six months after the sale, you can stay in the house and attempt to come up with some other solution, such as selling the home or refinancing with a new lender. But it is usually very difficult to refinance if you have a foreclosure on your credit.
If you have the money to pay the lender and reinstate the loan, that is usually the best option to stop foreclosure and prevent the sheriff sale. Otherwise, repayment plans, refinancing, or selling the home to a private lender may be available options, depending on all the circumstances.
Good luck.
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