STOP Foreclosure W/o BK
My brother-in-law's house is scheduled for sale on Tues. He states that didnt know that it was active because he received a forebearance letter from the lender on Sept 26. However, he didnt make his first payment on the forbearance agreement due Sep 30.
Anyway, we have already disputed the validity of the foreclosure, mostly because I thought the first step was a certified letter stating NOD, which never happened. They did get one in regular mail though. I dont know if it will work or not.
I have an investor to buy the property from them but it wont close before Tuesday.
What other than BK can I do to help??! I would hate for them to file for one week, and suffer for 7-10 years. 
Thanks.
In almost all foreclosures, Georgia(?) uses a private power of sale. Unless the security deed provides otherwise, once the debt is accelerated the Borrower has no right to prevent foreclosure merely by paying the missed payments. If it's a Fannie or Freddie he may be able to structure a repayment plan.
If a plan had been devised, and your brother met all conditions, then the Sale should be stopped.
If it can't be stopped by presenting the Forbearance Agreement to the lender's attorney and/or the administrator of the Sale, a voluntary bankruptcy and a voluntray withdrawal of the petition (to coincide with the sale to an investor)would be less damaging than the loss of the house at a forced sale.
They can file 13 which many of these people do several times to stall the sale .
Because you file doesn't mean it will be on your credit report
It will get dismised
Quote:
On 2003-10-04 15:28, allneeds wrote:
My brother-in-law's house is scheduled for sale on Tues. He states that didnt know that it was active because he received a forebearance letter from the lender on Sept 26. However, he didnt make his first payment on the forbearance agreement due Sep 30.
Anyway, we have already disputed the validity of the foreclosure, mostly because I thought the first step was a certified letter stating NOD, which never happened. They did get one in regular mail though. I dont know if it will work or not.
I have an investor to buy the property from them but it wont close before Tuesday.
What other than BK can I do to help??! I would hate for them to file for one week, and suffer for 7-10 years. <IMG SRC="images/forum/smilies/icon_confused.gif">
Thanks.
Like any other legal proceedings, there is a specific procedure on what the lender must due in order to foreclose on the property. If that procedure is not followed, a judge can tell the lender to re do it the correct way. This buys you sometime, but still doesn't stop the power of sale to stop.
Bankrupcy again will only prolong the inevitable. One of the only real solution maybe to sell the house and payoff the lender's loan.
By deeding the property to an investor without paying the loan off, the Power of Sale may still take place. It all depends on the lender and their attorney's. At some point, they will no longer negotiate a deal with you and will want the full payment.
However, since we are in tough times, and many loans are probably falling into default, they maybe more lenient, but don't count it.
[ Edited by bjsmooths on Date 10/19/2003 ][ Edited by bjsmooths on Date 10/19/2003 ]