Foreclosure Information

Can I stop a foreclosure without filing bankruptcy?

It is possible to stop a foreclosure sale without filing for bankruptcy.  Mortgage companies, to meet the problems associated with the rising levels for foreclosures, have internal departments set up specifically to assist debtors struggling with mortgage deficiencies.  There are some common non-bankruptcy options that include loan modifications, interest rate reduction, and forbearance agreements.  Of the three options mentioned, perhaps the most widely used non-bankruptcy option is a forbearance agreement.  A forbearance agreement allows the Debtor to cure the mortgage arrears by making payments in addition to the regular monthly mortgage payments over a short period of time in an effort to bring the loan current.  In exchange, the mortgage company will remove the foreclosure sale from the foreclosure docket and allow the Debtor to complete the proposed payment plan.  A forbearance agreement is an excellent resource to be used when the mortgage deficiency is caused by a short-term interruption in income, and the debtor is now making full wages.  If the Debtor is not able to make a full mortgage payment and an additional payment, then a forbearance agreement will not be successful

More Foreclosure Topics

• What is foreclosure?
• Why are foreclosures on the rise?
• How can bankruptcy stop foreclosure?

Topic: Forbearance Agreement

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