How to stop a foreclosure auction immediately – If you would like to stop a foreclosure auction as soon as possible, there are many steps that you can take to do so. You just have to consult a competent legal adviser to help you out. Here are some examples of emergency strategies that you can take to stop foreclosures right away.
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Declare Bankruptcy
If the foreclosure auction is scheduled within the next few days, it would be best to file for bankruptcy in order to stop the execution of the act. The stay will immediately be applied and stop the foreclosure right away.
This is what you call an automatic stay and functions as an injunction which can prohibit the bank from foreclosing on your home and collecting on your debts with the house as collateral. In the same manner, any additional foreclosures will be stopped as soon as bankruptcy is filed.
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Loan Modification
If filing for bankruptcy does not work, you can apply to modify the terms of your loan. How to stop a foreclosure auction immediately, this will prevent the bank from collecting on your property because if they are prohibited from engaging in dual tracking. Dual tracking occurs when a financial institution proceeds with a foreclosure while the application for loss mitigation is underway.
Take note that you would not want to explore this option at the last minute. This is because it may take some time for the paperwork to come through.
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File Charges
How to stop a foreclosure auction immediately. If it so happens that the bank engaged in non-judicial processes to foreclose your home, you can’t stop the foreclosure by filing charges against the bank. You can do this to challenge the nature of the foreclosure itself.
This normally will not work because most of the time, foreclosure auctions occur under legal circumstances. However, there are certain conditions that can lead to illegal foreclosure. These are as follows:
- If the bank cannot prove its ownership of a related promissory note for the foreclosure
- If the bank fails to act within the tenets of the State Mediation Requirements
- If the bank personnel violates the homeowners bill of rights as the foreclosure occurs
- If the bank fails to follow each and every step of the foreclosure process
If any of these conditions apply, it can be deemed an illegal foreclosure and grants you as the homeowner the right to contest the foreclosure proceedings.
The Final Words
To learn more about the aforementioned proceedings and how you can stop it as soon as possible, how to stop a foreclosure auction immediately, please do not hesitate to consult a legal adviser. (Lawyer)
By doing this, you will be able to find out more about foreclosures and how to stop them the legal way. It is also important to know that banks and other financial institutions are well within their rights to file counter charges against you for discontinuing the foreclosure.
If this happens, you should be prepared to counteract their action. It will be a long legal battle but if you are in the right, you should not hesitate to pursue your case. Prepare all the legal documents necessary to build your case and ensure your victory.
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