Five ways to Stop Foreclosure- Iowa Edition
Ok, There is no magic pill here, the best way to stop foreclosure is to pay what you owe; however, if that is out of the realm of possibilities here is what you can do:
* Get the bank an offer from a buyer to buy your home. Any offer, just get it now! Banks allow a procedure called a Short Sale, and as a shameless plug here, it is what we do all day everyday. So if you are in foreclosure stop by our website at http://www.foreclosuredesmoines.com and we will see if we can make you an offer today.
* File for Bankruptcy. Before you do this, consult with your CPA and a qualified bankruptcy attorney to make sure its a fit. The law says that a court cannot proceed with foreclosure whilst the property is in bankruptcy proceedings. It will ensure, in most cases, that you will not get any deficiency judgments after the foreclosure or short sale.
Remember : Bankruptcy does not prevent foreclosure, will still have to sell your home or pay it off to avoid foreclosure.
* Loan Modification- A Loan Modification is any change or alteration to the original terms of the note that you signed when you purchased or refinanced your home. This can be a lowering of the interest rate on the home, a reduction of the principal balance, or a lengthening of the amortization of the loan. A good starting point for this process would be the Iowa Mortgage Help website: http://www.iowamortgagehelp.com
* File an Answer to the Petition to Foreclose- When a bank begins a foreclosure process, they file a petition with the courts to foreclose on the mortgage. They are seeking a judgment "In REM" or 'in the land'. In plain English, they are coming after the house to collect a debt that was represented by the note you signed promising to pay them back. Banks have to serve you this document, and if you file an "answer" to this petition you can buy up to 6 months to a year delay of the foreclosure. This document should be prepared by a competent attorney and you need to file this within the time frame allotted in the petition. Keep in mind, that if you file for this delay, then you may be relinquishing your rights not to be chased for a deficiency judgment. When a lender files for foreclosure without redemption, they cannot pursue a deficiency judgment, unless you file for a delay, so choose wisely!
check out Jeff Mathis' Blog at http://www.iowaforeclosure.blogspot.com/
* Demand the bank to produce the note. Check out this site for details: http://tiny.cc/kOw3l The gist of it is, that banks have bundled and sold the rights to service these loans so many times that often times they don't even have a copy of the original note anymore. Without it, a judge can rule that the servicer doesn't have the right to foreclose without being able to show the terms of the deal as evidenced by the note.
So there it is, 5 ways you can stop your foreclosure. Remember, most of these are temporary solutions, to deal with the issue permanently you will need to either find a way to repay or sell the sucker. If you are wanting to sell your house as a way to avoid the foreclosure on your record, give us a call at
(515) 657- SELL
or email us at: