Stop Foreclosure

Foreclosure pertains to the right of  mortgage holders or lien holders to obtain property ownership or put the property up for sale with the proceeds used to pay off mortgage if the payment is defaulted. Mortgage defaults used to result in automatic ownership of property but in time, the law allowed mortgagors lenience in paying off properties. 

Foreclosure entails a complicated process ahead of it, which is why having a foreclosure attorney is important in this case. An attorney can review your case, formulate defenses, and make negotiations and perform meditation for you to ensure the best outcome possible and to stop home foreclosure.

 

What is Pre-foreclosure?

Pre-foreclosure pertains to the period after defaulting on payments but before foreclosure begins. In this stage, servicers can charge fees such as inspection fees. Servicers are required to inform you about the steps in order to avoid foreclosure along with a breach letter which is a preforeclosure notice. 

Missed payments on loans include a 10-15 day grace period, after which the servicer will set forth a late fee and each month the mortgagor misses, the servicer will charge the said fee. The mortgagor can look at the promissory note they previously signed or the monthly mortgage statement in order to find the amount and grace period. 

 

What is the 120-Day Waiting Period?

If a mortgagor misses a mortgage payment, it is considered as a breach of contract since a mortgage is an agreement between the mortgagor and the lender which binds them to make monthly payments. Despite it being a breach of contract, a bank cannot foreclose immediately. The Dodd-Frank Act indicates that a loan servicer must undergo a 120-day waiting period before proceeding with the foreclosure.

During those 120 days, homeowners can analyze loss mitigation with options such as mortgage modifications or a deed in lieu of foreclosure. In case the homeowners prefer a loss of mitigation application, this can be filed after a foreclosure though it is advised that it must be completed before the 120 days pass. A loss mitigation that isn’t filed can result in the lender initiating a foreclosure 120 days after the missed payment date. 

 

What is St. Louis, MO Nonjudicial Foreclosure Process?

If you are facing foreclosure in St. Louis, MO, it is important that you understand the state’s particular rules and procedures. Each state has its own and the following are what comprises Missouri’s nonjudicial foreclosure process: 

In Missouri, the law stating that a lender obtains court orders to sell a home does not apply. Foreclosures in Missouri are nonjudicial foreclosures, which means that the bank can start foreclosure without court approval. The two things required for nonjudicial foreclosure include: 

1. Trustee or lender must mail a foreclosure notice to the borrower. The mailing must be done 20 days before the date of sale. 
2. Trustee or lender must publish foreclosure sale notice in the newspaper daily for 20 days.

Upon the commencing of the nonjudicial foreclosure, it takes 45-60 days to complete. Foreclosure initiation doesn’t automatically mean losing your home. One can always take action and this is where getting in touch with a MO foreclosure attorney comes in handy. 

 

How Does One Stop Foreclosure in Missouri?

Foreclosure doesn’t automatically mean losing your home. When faced with foreclosure, you have the option to not go down without a fight. There are ways where you can stop foreclosure in St. Louis, namely through loan reinstation, property redemption, and filing for bankruptcy. The ability to work out a loss mitigation option such as a loan modification can also stop foreclosure. 

• Reinstating the Loan– Missouri law does not provide a right to reinstate the loan but deeds of trust can provide the mortgagor complete reinstatement. 

• Property Redemption– Redeeming the property is a way to stop foreclosure. The mortgagor must pay the amount in full before the foreclosure sale. Under Missouri law, if the lender purchases the property at the foreclosure sale, they get a year to redeem the home after the sale. The mortgagor must have a written notice of intention to redeem within ten days prior to the sale and satisfy a bond requirement. 

• Filing for Bankruptcy-Another way to stop foreclosure is filing for bankruptcy. If a sale is scheduled the next day, one can stop the sale through the filing of bankruptcy since the moment you file for bankruptcy, automatic stay occurs. Automatic stay is putting a stop to collecting debts and foreclosing homes. One can opt for chapter 7 which can halt foreclosure for months or chapter 13 in order to completely save the home. Get in touch with a St. Louis attorney in order to weigh the best possible option. 

What is Accelration?

Acceleration is used to determine the amount a mortgagor owes under foreclosure. Acceleration works when the mortgage is taken out on property with a certain amount of monthly payments required and the mortgagor defaults on this mortgage payment, mortgage holders can demand the mortgagor to pay more responsibly on the rest of the mortgage.