This is Part 2 of my article on the "Secrets to Stop
Foreclosure." In Part 1, I discussed the secrets of how to
communicate with your lender and how to find the
appropriate person at the lender's office. In this
article, I'll discuss the secrets of finding someone with
authority at your lender's office, getting your files
organized, and learning to understand the foreclosure clock.
A. Find Someone With Authority to Stop the Foreclosure
As you develop a strategy to stop your foreclosure, the
secret is to be in close contact with someone at your
lender's office who has authority to stop the foreclosure.
Don't waste your time negotiating with a lower-level
collection person who has little interest in your hardship
or the reasons you are not making the monthly payments.
All he wants to know is when you are going to pay. The
secret here is that collection personnel have no authority
to negotiate with you or stop your foreclosure. You need
to find someone with authority. Here is another secret.
If a collection person calls, politely say goodbye and hang
up. Then call the main office of your lender. Ask for the
names of the branch manager and the senior loan officer.
When you get the information, thank the person you're spoke
to, and hang up again. Wait one hour, call back and ask
for the branch manager or senior loan officer specifically
by name. Once you are connected, request an appointment.
If you can't get through and no one returns your call, send
a letter. Be sure you send a copy to the president of your
lender. Wait several days and call again. Sooner or
later, you'll reach someone with authority. This is the
person you will want to meet with.
B. Get Organized
It is important to gather together all the documents that
relate to your property and your loan. In a typical real
estate transaction, you signed a purchase contract, escrow
instructions, a promissory note, and either a mortgage or
deed of trust. Organize and review as many of these
documents as you can in order to understand how the
foreclosure process applies to you. Here's what you should
get:
• Copies of the promissory note, mortgage or deed of trust,
• Copies of all documents and letters in your escrow file
(contact the escrow company or title company that handled
the purchase of your property to get copies).
• A "property profile" which contains information on all
documents recorded against your property. You can obtain a
free copy of a property profile from the title insurance
company that originally insured your purchase of the
property. Also ask the company for copies of all documents
recorded against your property in the county recorder's
office.
• Copies of all letters you sent to and received from your
lender, along with the envelopes the letters from your
lender came in, if you have them.
• Copies of your monthly mortgage statements, loan payment
stubs, or any other billing and payment information.
• Copies of all foreclosure documents you've received, if
any. Also save the envelopes of documents you've received,
if available. Label one file folder for each group of
documents and put them in the folders in chronological
order. You will refer to these documents again and again
as you fight your foreclosure.
C. Learn the Clock
Foreclosure involves very specific timetables in which
notices must be carefully served, mailed, recorded, posted,
and published before your lender can legally foreclose.
Foreclosures can be conducted either judicially or
nonjudicially, depending on your state. You need to know
which type lenders in your state use. Each kind of
foreclosure has its own procedural rules, so you need to
know whether you are facing a judicial or nonjudicial
foreclosure. Here are the particulars:
Judicial foreclosure. Most foreclosures of mortgages are
judicial. This kind of foreclosure starts when your lender
files a lawsuit in the court in the county in which your
property is located. You must be served (provided with)
with a copy of the Summons and Complaint for foreclosure.
A judicial foreclosure can take anywhere from one to two
years.
Nonjudicial foreclosure. Most foreclosures of deeds of
trust are nonjudicial. Your lender avoids the court system
entirely by having a trustee (a third party who conducts
the foreclosure) follow a specific series of notice
procedures, then sells your property at a public auction.
A nonjudicial foreclosure can take anywhere from three to
four months depending on your state.
Knowing the foreclosure clock is another secret to
successfully stopping your foreclosure. Once you
understand the time constraints within which you are
working, you can customize a strategy that fits your
particular situation. For example, if you have two to
three months until the foreclosure sale, you still have
time to bring your loan current, negotiate with your
lender, or refinance your property. On the other hand, if
you have less than a week before the foreclosure sale, your
only option may be to file for bankruptcy. Remember, the
secret is that these time periods are for your benefit--not
your lender's. This is your opportunity to apply a
strategy that can most effectively stop the foreclosure.
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This article was written by Lloyd Segal. Lloyd is a
mortgage banker, attorney, and author of "Stop Foreclosure
Now." His new book helps homeowners understand the
foreclosure procedures in their state and develop
strategies to stop the foreclosure. More on his book can
be found at http://www.stopforeclosurenowbook.com
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