How Much Time Are You Allowed Before It's Too Late To Pay Back Your Lender

By Author: Nick Adama
Total Articles: 197
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I have responded to this question with our clients many times before, but more homeowners continue asking the question, how much time do I have to pay back my servicer and get my property out of foreclosure?

There are two fundamental complications with answering this question. The first is that every state and lender has completely different laws and regulations from the next. Courts even have the ability to handle cases differently from one county to the next. The 2nd is that simply paying off the arrears on a mortgage is not always the best method to save a house from foreclosure.

This choice appeals to very few people, because coming up with that much cash is nearly impossible for most foreclosure victims. The servicers add so much extra money when a loan gets delinquent, that negotiating with the banks has become necessary in almost every foreclosure case.

Regardless of these major complications with answering this question, I'm going to do my best to provide the information you need to take the next step and avoid foreclosure.

Depending on your state laws and your ability to negotiate with ...
... your lender, you can (generally) get your property back up until about 24 hours before your sale date. If you have less than 24 hours, your servicer will probably just tell you there is not enough time to stop the sale. If they do tell you no, your next step to save the home would be to go to the court and speak with the judge.

Explain your circumstances and the court will probably grant you an extension and time to pay the balance. Your servicer should be happy to help you catch up on the loan, but the customer service reps will likely need a huge kick in the right direction.

In the event you do have the savings to pay the arrears and your home sells anyway, you could probably go to the court and try to have the sale reversed before it's finalized. If you decide to attempt this, it's probably best to hire a professional to help. You would need to have a reason to reverse the sale. Just having the money to pay the arrears is not enough. There are many reasons to stop the confirmation of the sale, so just speak with an expert and find out which applies to your case.

After the sale is confirmed (2-30 days after the sale), you would either have to file a lawsuit against your servicer for a wrongful foreclosure or get the property back during a redemption period (if allowed in your situation. In certain foreclosure cases, the court can have the sale reversed, but this is extremely rare.

regardless of the circumstances, if you have the cash to pay the amount due, you should be able to keep your home, as long as you hire the right person to help.

But always remember, there are much better options than just paying your arrears to keep the house. Obtaining a mortgage modification is a much better option than paying your arrears off to keep your home. A loan modification may lower your payment by reducing the interest rate, extending the term, or even lowering the balance. If it's not too late for a mortgage modification, I would consider that as your first choice to stop foreclosure.
To get more foreclosure help and advice, you can find more of Nick's articles at his website. The site examines various ways to save your home, from the time you lose a job or face a hardship to the period after the trustee sale when you are trying to avoid eviction. Visit his site here to read more: http://www.foreclosurefish.com/