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6 Ways to Delay Foreclosure in North Eastern Ohio- Part Two of Two

To continue with yesterday’s topic…

North Eastern Ohio Delay Foreclosure Method 4– Loan modifications and Forbearances
Banks will delay or stop the foreclosure when you do a loan work out plan (loan modifications) to start making payments. A loan modification will usually cause the foreclosure to be completely canceled. It will actually add the back payments onto the end of the loan and in some cases you may have an interest rate that is lowered to 2%. The amortization on your loan with some loan modification programs may even be extended to 40 years.

A forbearance plan however only pauses the foreclosure until you are completely caught up. For most people a forbearance plan is not realistic for keeping their home long term however even a it could give the necessary time to use other strategies. Usually, with this type of plan you will end up making a payment and a half or two payments each month. Obviously a loan modification is much more advantageous.

These agreements can be done spuriously just to buy an extra 30 days or even extend your time in the home indefinitely by faithfully making the full payments as agreed upon. However, using plans like these only as a delay tactic with no intention of making payments is not recommended because generally there is often a significant upfront payment required to start making payments again. You should not enter a plan like this with out good counsel from a financial advisor because if you default on a work out agreement your lender often times will not allow you to make another similar agreement for the same hardship.

Sometimes government guaranteed loans have special zero interest loan programs for assisting your with your back payments. An example of this would be the partial claim that you can do if you have an FHA loan.

North Eastern Ohio Delay Foreclosure Method 5– Present an offer (short sale or otherwise)
I knew of one title agent that would call lenders and say “hey we have cash offer. Could you cancel the sheriff sale?” She said this worked many times even when the offer wasn’t a full pay off of the loan the lender would cancel sheriff sale just to evaluate the offer. My experience is that most of the time the lender will continue to foreclose whether there is an offer or not. The exception would be HAFA short sales and FHA short sales which will stop foreclosure when you request to do a short sale even if you don’t have an offer. Lenders will often stop a sheriff sale if there appears to be an offer for full payoff or if the offer appears to be a full market short sale offer. My associates and I have seen banks stop sheriff sales and delay the foreclosure process numerous times.

If you have no intention of actually selling your home, then this method is probably not the best one for you as you don’t want to intentionally mislead your lender (going to jail for fraud would be a total FAIL).

North Eastern Ohio Delay Foreclosure Method 6– Challenge foreclosure
If you are challenging your lender in court or launching an attack, you should look for an attorney with at least 5 years experience that will review the procedures with which you were sued and file answers to delay the foreclosure along with continuances. There are so many ways to take this method that you could probably find 100 ways to delay foreclosure just in this method alone. If you have lots of time and energy and have very sharp language skills you can go at it pro se. Warning- Fighting with sharks that want to eat you and are more experienced than you takes a lot of courage. This is a link from a 23 year old woman who was actually successful in defending her family pro se from foreclosure. http://www.latimes.com/business/la-fi-foreclosure-battle-20100805,0,3410289.story In this article it mentions that she used online legal filings as models. You might checkout Google Scholar http://scholar.google.com/ and Westlaw http://westlaw.com. Also a book like 23 Legal defenses to foreclosure would guide you http://amzn.to/ahqO0P. It actually includes 50 plus strategies for defending foreclosure as well as specific court strategies and actual documents to file. As far as delay goes any kind of defense will be something new to be heard in court and will thus cause a delay. A local attorney that I work with does a lot of foreclosure defense. One of his methods in delaying foreclosure is to file a 30 plus page discovery request. This takes tremendous time to answer and will delay foreclosure. There are really too many to name. However I plan on blogging about more of them here so stay tuned.

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Andy Morris is an Ohio real estate broker with an expertise in selling homes on a short sale. If your Ohio home is heading towards foreclosure or you owe more than your property is worth, please call Andy at 888-4-STOP-IT to see if you qualify for a short sale with your lender. Are you not in the North Eastern Ohio area? His team can negotiate short sales across the United States.

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