What To Do When Your Home Is In Foreclosure
By Däna Wilkinson, Attorney at Law on May 6, 2007 in General Bankruptcy Information, South Carolina
The South Carolina Bankruptcy and Consumer Blog had this disturbing post, reporting a series of events taking place among various lenders over several states. The sequence of events goes like this:
- Client faces foreclosure
- Client wisely begins investigating Chapter 13 as a solution
- Client gets phone call from lender - “Don’t fret, we’ve got it under control. There will be a new loan. We’ll work something out.”
- Client breathes easier.
- The day before foreclosure hearing or sale, Client gets antsy, having not heard from Lender. Lender says, “Oh. Gee. Sorry. Didn’t work out.” Or “here’s your new term” - and it’s substantially more than Client can afford. Or - you get the picture.
Maybe this is just a case of the forebearance and foreclosure departments failure to communicate; maybe it is more. Bottom line, though, whether you are negotiating with your lender’s loss mitigation department, with a third party “foreclosure specialist” or, for that matter, with anyone else, in an attempt to stop foreclosure, you need to stay on top of the timing, and ensure that the matter really is resolved.
If time is running out, and you do not have a final resolution, don’t wait until the literal eve of foreclosure to inquire, or prepare to file a bankruptcy. The process itself, which includes a requirement for credit counseling, is lengthy enough. Some attorneys (I am one of them) don’t file emergency bankruptcy petitions, and you may find yourself out of options.
If you do receive an offer to refinance your home from your existing lender or any one else, or you make some other arrangements with a third party to save your home, do yourself a favor. Retain your own attorney to review the documents and advise you. Yeah, it will cost you a couple hundred bucks, but it’ll pay off in eliminating unintended consequences and ensuring that you do, indeed, know what you’re getting.
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