Stop the Sheriff Sale, Stop Foreclosure

It is no secret that the sheriff sale is the most important event that homeowners in foreclosure will experience. Many foreclosure victims, when facing a sheriff sale, would like additional time in which to work out a solution. Postponing a sale gives both lenders and homeowners a chance to get the loan reinstated or paid off, and benefits both parties. As little known as this issue seems to be, there are three distinct ways in which a homeowner can have a sheriff sale postponed while they work on another solution to stop foreclosure.

Asking the lender to postpone the sale is the first method, although it is commonly overlooked. Lenders, though, will put a sale on hold, in many instances, in order to give the clients another chance to save their home or get out of foreclosure. The mortgage company will usually request some documentation to prove that the foreclosure victims are actively seeking a solution, such as a loan modification or foreclosure bailout loan, or any other plan that they may have to save their home.

The second way to have a sheriff sale postponed is when the homeowners petition their county court for additional time. This option is especially appropriate in cases where the lender is not willing to give the homeowners any more time to save the property from foreclosure. The county court can automatically postpone the sale regardless of the lender's intentions. Again, the homeowners will usually have to provide some proof that they are working on a viable solution that will stop the foreclosure entirely. This method of stopping a sale is the least-known option.

The third common way that homeowners can use to prevent the sheriff sale is by filing a Chapter 13 bankruptcy to stop foreclosure. Most of the time, this is the least-desired option on the part of the homeowners. Foreclosure victims would rather find a different solution to foreclosure other than filing bankruptcy. However, if no other option is available to the homeowners, bankruptcy to get a sale postponed may give the homeowners one last chance to save their home. During the bankruptcy, the foreclosure victims will have a chance to pay back their debts through a payment plan that will give them protection under the bankruptcy law. Of course, bankruptcy is a much more in-depth process, and homeowners should consult a lawyer to determine if this is a reasonable last ditch effort to prevent losing their home to foreclosure. Although many homeowners would rather avoid this option, it may present the one chance the homeowners need.

These three methods of stopping a foreclosure auction are the most common options that homeowners may have. It is very easy to ask the lender for a postponement, but then all of the decision-making power is in the hands of the bank. Requesting that the court automatically postpone the sale is another option that is almost never talked about in the foreclosure industry. The final option, bankruptcy, is usually considered by the homeowners to be the last resort to prevent them from losing the home and if there are no other ways to gain additional time. As soon as a homeowner is in danger of missing more than one payment, they should seek out as much foreclosure information as they can, so there are more options to stop foreclosure and the situation does not progress to a sheriff sale. It is much easier to stop foreclosure before a sale is scheduled.