Real Estate: Stopping Foreclosures

Foreclosures are a scary thing for anyone to have to deal with. Especially those who have just had a horrible experience befall them which may be the reason behind the foreclosures to begin with. Regardless of your circumstances behind the foreclosure there are steps you can take to safeguard your home and stop the final decision that would leave you without a home.

There are two primary foreclosures to worry about when you buy real estate: Judicial and Non-Judicial. For most people, especially first time home buyers, you may not know the difference (other than the obvious) between the two. Hopefully by the end of this article you will be able to identify key points that can save your home or the home of someone you know.

Real Estate Foreclosures: Non- Judicial

The most common and probably the scariest element of non-judicial foreclosures is that your lender may auction your property off without going to court. This is dependant on state law of course. It is important to remember that the courts do not over see the foreclosure process.

Most people don't understand all the aspects of these types of foreclosures so many never try to stop them. If a person becomes educated then there is really no need to get worried or panic. All you have to do simply follow a few steps to make sure that the foreclosures are not successful and keep your property. Because of the amount of time and process involved it is important understand it so you do not let the opportunity pass you by. So, first you must find out what the state laws are about this kind of foreclosure so you can educate yourself on what you are dealing with.

Real Estate Foreclosures: Judicial

This is the more extensive and lengthy of foreclosures. I highly recommend that if you get hit with one of these types of foreclosures you hire a lawyer to protect your rights. Because of all of the complex elements regarding the court procedures and laws therewith, you will need someone who knows and preferably one who specializes in this field.

These kinds of foreclosures usually consist of a 12 step, court supervised process:

1. Your lender files a complaint
2. Lender records Lis Pendens (notice of pending action)
3. Answering the complaint (usually you must do this within 30 days)
4. Reinstatement period
5. Discovery (evidence to prove your position/case)
6. Trial
7. Equity Redemption
8. Writ of Sale (this is when your lender obtains a writ of sale, and then gives it to the sheriff in the county of your residence. They will then prepare a notice of levy for property seizure with the intent to sell it off)
9. Notice of sale
10. Foreclosure sale
11. Deficiency judgment (this is only dependent on the fact that your lender actually sought a deficiency judgment... not all do- it is important to know what they are seeking)
12. Post Sale Redemption (you will have the chance to et the property back for a short time assuming you can come up with the entire foreclosure amount and pay the sheriff dues, this can be substantial.)

Real Estate Foreclosures: Necessary Steps to Take

There are several things that you can do to stop the nightmare of foreclosures from happening to you. Not all of these avenues are right for you so find out more about them and then after educated yourself you can decide which is the best way to keep your property.

Refinancing is one of the best options available. Once you refinance, you can save money every month thus making it more feasible to make the payments and with a new lender your old one can not take your home. This is probably the fastest and more common of the steps. But remember, you need to keep your credit in relatively good shape and have equity in your property in order to do this successfully. Refinancing can be achieved by banks, credit unions, mortgage companies, and more.

You can also apply for a loan that will cover what you need to stop the foreclosures and still have some money left over. The types of loans available are: Home Equity, Hard Money, and Conventional. These can pay off the debt to get you back on track.

If you are in the military you can use your status to stop foreclosures. The SSCRA (Soldiers and Sailors Civil Relief Act) is a protection afforded to those serving in the military... although it will not pay off your debt it will suspend all actions against you temporarily.

Selling your property is also a wise decision if you are in a jam that you can not get out of. By doing this you will walk away with your money and won't get the negative marks against you. But this should not be done unless you have tried all of the above first... if you want to keep your home.

Bankruptcy is another avenue that you can consider although you should definitely exhaust all other efforts first. This should be used as a last resort.

Real Estate Foreclosures: Conclusion

Don't feel helpless if this happens to you. Foreclosures can be stopped relatively easily with a calm head and educated decisions. This article will guide you safely through the process of foreclosures if you are ever in the situation of potentially losing your home.