The prior two chapters provide advice when you are having trouble involving your mortgage payments and your rights to engage in loss mitigation and loan modifications. However, a foreclosure sale may be so close at hand that a workout agreement or loan modification is not possible, or the lender may not agree to an acceptable arrangement. In these situations, you should consider the options laid out in this chapter.
You are not powerless when faced with a foreclosure sale, but you need to be realistic in defining your objectives. You often have a good chance of achieving one of the following two objectives:
- 1. If you have the financial resources, you can keep your home by paying back delinquent payments and legitimate fees or costs. It also is possible to prevent foreclosure by “redeeming” your home.
- 2. If you do not have the financial resources, you can delay the foreclosure sale to give you enough time to find a long-term solution to the underlying problem that caused you to fall behind on your mortgage payments.
This chapter also has special advice for nine particular types of foreclosures:
- ● If your mortgage is backed by three different government agencies—FHA, VA, or RHS;
- ● If you or your spouse are now on active duty in the military;
- ● If you have a land installment sale contract;
- ● If your mortgage resulted from a home improvement scam;
- ● If your mortgage is for a manufactured home;
- ● If your manufactured home is facing eviction from a manufacture home park; and
- ● If your condominium faces foreclosure for unpaid condominium fees.
The next chapter examines yet another type of threatened foreclosure, one based on unpaid property taxes to the city or town. In addition, Chapter 21 sets out your rights if a creditor other than your mortgage lender is trying to seize your home for an unpaid court judgment.