Avoid Foreclosure after Auction Date is Set

Hey guys, this is Mike from Mike Buys Houses and in this article, we’re going to touch on how you can actively work to stop a foreclosure, especially how to stop one after an auction date has already been set. If you haven’t already checked it out, I have a whole article about the 8 options to stop foreclosure

In this one, we will do an overview of some of those options so you can make some good decisions during a trying time.

Declaring Bankruptcy

The first option that you have available to you if your property is in foreclosure and an auction date has been set is to declare bankruptcy.

Please understand that this option has a major negative impact on your personal credit score, but it will immediately stop the foreclosure process. At that point, the court systems are going to do their work and that’s going to protect your home from being foreclosed upon for at least a month or two.

Depending on your situation and which type of bankruptcy you declare, it may completely stop the foreclosure. So, what you’re going to want to do is reach out to an attorney near you and find out specifically what your options are in your situation, as far as declaring bankruptcy. 

Before you start this process, remember that it can stop the foreclosure process, but it is going to have a pretty negative impact on your personal credit score. 

Acquire a Loan Modification

So the first option to stop a foreclosure is to declare bankruptcy. The second option to stop foreclosure after the auction date is set is to do a loan modification with your bank. 

In order to do this, you’re going to have to be 37 days out from the auction date, and if you are 37 days out, then the bank does have to take your loan modification application. This does not mean that they have to accept your application, it simply means that they will review it.  

At that point, the bank is going to review your application for a loan modification as you’re 37 days out when you sent in the application. Even if you’re within 37 days, it’s still likely that because you’re trying to get it done, the bank will work with you and actually take a look at the loan modification request. Obviously, that will be dependent on your bank and the specific situation, but it’s worth trying to see what they will say as it will give you a lot more options.

Deed in Lieu of Foreclosure

The third option to prevent foreclosure once the auction date has been set is to reach out to the bank to try and get a deed in lieu of foreclosure done.

What that will do is it will save you from going through the foreclosure process, but you will deed the property over to the bank. So, the bank is able to get the property without the cost of going through the foreclosure process and you’re able to avoid the increasingly negative impact of actually going through the foreclosure process on your credit score.

So, you can perform a deed in lieu of foreclosure and reach out to your bank in order to try and get this done. It can get done pretty quickly as well, so this is a good option to keep in your back pocket or if you’re in the last minute. If you want to capitalize on a deed in lieu of foreclosure, reach out to your bank or reach out to me at (267)-984-4765 and we can discuss what your best option is.

Sell with a Realtor

The fourth option to stop a foreclosure once an auction date is set is to sell your property with a realtor. If you go this route, you need to disclose that the property is in foreclosure early on, and you will need to stress the importance of moving quickly. Your realtor is going to need to be experienced in this situation and be willing to hustle, which may cost you more money. You may also need to price the property very aggressively, as you have to close before the auction date.

Also, make sure your buyers aren’t going to need financing, as that will take up to three months in order to get something done. So, if you’re listing with a realtor, ideally you will have a good amount of time before that auction date. 

Sell with Mike Buys Houses

The other option available to you at any time during the foreclosure process and especially after an auction date is set is to reach out to me. I purchase houses in this situation via cash and terms and I am confident that I can help you avoid foreclosure and major negative credit score impact. Reach out to me and I look forward to helping you through this process.

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