When Is It Too Late to Stop Foreclosure?

Foreclosure is the process by which a homeowner stops making mortgage payments on time as required, and a lender has the right to seize the property to satisfy an outstanding debt. It is definitely one of the most stressful and devastating things that can happen to a homeowner. First, they lose their home, and second, the foreclosure stays on their credit report for up to seven years, making it difficult to get another loan. One of the main questions people ask about foreclosure is, “When is it too late to stop foreclosure?” Let’s look at the timeline. 

The Foreclosure Process Simplified

Foreclosure essentially begins when a homeowner is late on mortgage payments and ends with the mortgage lender taking over ownership of the home. Here are the primary steps in the process.

  • Missed mortgage payments. The first step in the foreclosure process is a missed payment. However, the good news is that most lenders try to work with borrowers first to help them avoid foreclosure because this process is not beneficial for either party. 
  • Continued missed payments. If a homeowner keeps missing payments, a lender will most likely file a notice of default after 3 months. The notice means the lender is ready to start the foreclosure process. 
  • Preforeclosure stage. After receiving a notice of default, a homeowner is given 90 days to pay off their debt. 
  • Auction. If a homeowner does not do anything to prevent the foreclosure within 90 days, their home will be auctioned off to the public. Usually, auctions are conducted by a trustee, auctioneer, or local sheriff. 

How Long Do I Have to Stop Foreclosure?

The preforeclosure timeframe is when you must take action. Once you’ve received notice of default from the lender, you generally have about 90 days. In this timeframe, if you do not take steps to save your home, the lender takes over possession of the home, and it is too late to stop foreclosure. 

Ways to Stop the Foreclosure Process

 If you want to stop the foreclosure process before it’s too late, here is what you can do: 

  • Negotiate with your lender. Foreclosure is expensive for most lenders, so most of them are ready to negotiate and find a solution. This means that you can always discuss with your lenders the ways how to get back on track with your mortgage payments. If you have already missed a payment, do not hesitate to contact your lender as soon as possible. The sooner you contact them, the more likely they will offer you a temporary payment plan or loan modification. 
  • File for bankruptcy. All creditor actions against you (which include foreclosure) will stop once you file for bankruptcy. However, you should be aware of the disadvantages and limitations of this method. Even if you declare bankruptcy, you will still have to pay off your mortgage debt. 
  • Sign a deed in lieu. A deed in lieu says you voluntarily give the deed of your property to your mortgage lender. However, there is one disadvantage of this method that many do not know about — a deed in lieu has a negative impact on your credit score, just like foreclosure. The only difference is that this impact is shorter — four years instead of seven. 
  • Consult a foreclosure expert. You can always talk to a foreclosure professional, who will give you recommendations on how to stop the foreclosure with minimal losses. They can also tell you about the available programs to help homeowners struggling with mortgage payments. 
  • Sell your property as quickly as possible. Selling your home fast is probably the most efficient way to stop foreclosure. It is an especially good method for those who do not have time. Real estate investors are always ready to purchase your property and pay you cash, even if you are already going through foreclosure. 

Sell Your Property to We Buy Houses Cincinnati

If you own a home that you want to sell as quickly as possible because of foreclosure, We Buy Houses Cincinnati is here for you. You do not have to waste your time on negotiations with your lender, file for bankruptcy, or look for other methods that may not bring any results — we are ready to purchase your home immediately and as-is if your property is in Cincinnati or any other surrounding town. Once we receive your contact info, we’ll call you quickly and get a cash offer to you within 24 hours after we view and inspect your property. If you accept our offer immediately, your home can be sold within a few days. Even if you’re just curious what we can do for you, contact We Buy Houses Cincinnati online or call us at 513-878-1677.