How Long Does it Take to Stop a Foreclosure?

If you have been notified by your mortgage lender that they are going to start the foreclosure process because the home loan is in default, you are likely wondering if you can stop the foreclosure. Due to the fact that the foreclosure process is sometimes a long and stressful one, you also probably want to stop it as soon as possible.

You can try and stop the foreclosure from proceeding at any point in the process, even after the home has been sold at a foreclosure auction. Different phases of the process will take different periods of time and to understand when you can stop the foreclosure, you must first know what those are. Our Fort Lauderdale foreclosure defense lawyer explains when and how to stop a foreclosure below.

Stopping the Process During Pre-Foreclosure

Stopping the foreclosure process during the pre-foreclosure phase is ideal because foreclosures are stressful, time-consuming, and can even be quite expensive. During the pre-foreclosure phase, the lender must notify you that the home loan has fallen into default. However, at this time, the lender has not yet filed a foreclosure lawsuit with the court.

The length of time the pre-foreclosure stage takes will depend on the facts of the specific situation. Still, under the Dodd Frank Act, you have at least 120 days. This is known as the loss mitigation period and lenders are prohibited from filing a foreclosure lawsuit during that time. The 120 days start from the date of the first missed mortgage payment.

Once the 120 days have expired, the lender can usually start the foreclosure process by publishing a notice of default and eventually selling the home at an auction. In some cases, it is possible to extend the 120-day period. You must contact the bank and ask for a loss mitigation package. After you fill out this paperwork and submit it to your lender, they are required to inform you of whether you are eligible for loss mitigation. Even if you are not, the length of time it takes the lender to review your paperwork can delay the foreclosure process from moving forward.

You can stop the foreclosure from happening at any point during the pre-foreclosure phase. As long as you can pay the deficiency and bring the loan current, this is enough to stop the foreclosure immediately.

Stopping the Foreclosure Sale

If your case proceeds to the point where the lender has filed a notice of default and submitted their complaint to the court, the foreclosure lawsuit will proceed. If the lender is successful with their case, the home will then be sold during a foreclosure auction. The lawsuit will take anywhere between 180 and 200 days, on average, and that is if you do not contest it. The lawsuit will take longer if you contest the lawsuit by raising an appropriate defense.

Some of the most common defenses used in foreclosure cases are as follows:

• Lack of standing: Lenders must have legal standing to file a foreclosure lawsuit. Essentially, this means the lender must have been harmed by your failure to make mortgage payments. If the lender was not harmed, they do not have standing and this could be enough for a judge to dismiss the case.
• Insufficient notice: Most mortgage loans require the lender to notify you of the foreclosure before they file a lawsuit, and that notice must be given within a certain period of time. If your lender did not provide adequate notice, it can serve as a defense.
• Unclean hands: To prove the lender has unclean hands, you must show the bank took action that caused or contributed to the foreclosure. For example, if the lender agreed to delay some of your mortgage payments but then foreclosed on the property after you did not pay, that would be considered unclean hands.
• Failing to properly account for mortgage payments: There are very specific rules under both state and federal law lenders must follow when applying payments and charges to mortgage loans. If the lender did not comply with these laws, it could serve as a defense to foreclosure.
• Non-compliance with HUD requirements: The U.S. Department of Housing and Urban Development (HUD) offers many loan counseling options to homeowners. Lenders are required to inform borrowers of these options and when they do not, it can serve as a foreclosure defense.

A Fort Lauderdale foreclosure defense lawyer will review the facts of your case to determine which defense is best. The amount of time it will take to stop the foreclosure will depend on which defense is used.

The Right of Redemption

Using the right of redemption does not necessarily stop the foreclosure because before you can exercise this right, the foreclosure must have already gone through. However, the right of redemption can help you get your home back after the foreclosure auction.

The statutory right of redemption allows you to reverse a foreclosure sale after the auction was held and the home was sold. Under the law, you can pay off the total debt, including the principal balance, interest, and other costs and keep your home. You only have a limited amount of time to do this, though. Usually, borrowers are only given ten days to exercise their right of redemption. The amount of time you have will depend on the order from the foreclosure court, or the filing of the certificate of sale, whichever is later.

Our Foreclosure Defense Lawyer in Fort Lauderdale Can Help You Stop the Process

If your lender has notified you that they will begin the foreclosure process, your biggest concern is likely how to stop it. At Loan Lawyers, our Florida foreclosure defense lawyers know the defenses available that can help you stop the process and give you the best chance of keeping your home. Call us today at (954) 523-4357 or fill out our online form to schedule a free case review and to learn more about your legal options.