You’ve done everything the bank has told you to do—possibly more. You’ve gathered paperwork, calculated and re-calculated your income and expenses, and maybe even looked into hiring an attorney.
It’s getting closer and closer to your foreclosure sale date, so why is nothing happening? Why isn’t the bank responding to your request for a postponement?
If you feel your home is in danger of going into foreclosure because things aren’t being handled correctly by your Lender, increase your chances of getting a postponement by making sure you’ve done the five things below.
Request your foreclosure postponement from the correct parties
Your Lender is usually the ultimate decision-maker on whether you will get your postponement.Your Trustee
A Trustee often has independent authority, depending on the state that they’re in, to make decisions that are in the best interest of the Borrower.Foreclosure Attorney
A foreclosure attorney can help you identify any other independent authorities who have control over your foreclosure postponement. In addition, you will need an attorney because:
- If you’re in a judicial foreclosing state, the bank will have to file a lawsuit against you to foreclose.
- They can tell you if there is case law that supports the duty of the Trustee to look out for your best interests.
It’s never enough to trust a verbal confirmation of a postponement—you must get any agreement from your Lender or Trustee in writing, or on a voice recording. Ask them to send the confirmation that your foreclosure has been postponed through fax or email, or get their approval to record your phone conversation.Present a compelling argument for why you need a postponement
If you’re not sure, an attorney can listen to your situation and help you discover what your best argument would be. Usually having a solution in place to solve your foreclosure problem is your best bet. Solutions may include applying for a loan modification, putting your house on the market, or trying to reinstate your loan.
But don’t ask for more time just for the sake of more time. Ask for more time only so you can effectuate a solution and show the bank that you’re working towards something that will alleviate your long-term debt.Tell your Lender and Trustee the exact reasons for your delinquency and what you’re going to do about it
Of course they want to know why you’re experiencing financial hardship. However, that’s not going to be the most important factor in whether they decide to foreclose. They need to know:
- The timeline of events that led you to foreclosure. What happened from the time you first realized you were in trouble to deciding to request a postponement?
- Exactly what you’re going to do to fix the situation. This might mean borrowing money from a family member or taking in a renter.
- Why you didn’t pursue a solution earlier. If it’s only two or three weeks before the sale, for example, they will want to know exactly why you waited so long. Be sure to explain that you were going to work on a particular solution, but it wasn’t an available option for you until this moment. Or, perhaps you’ve had a change of circumstances that has put you in a better position financially to make your mortgage payments.
The sooner you share this information in a clear, accurate way with your Lender or Trustee, the better your chances are of approval.Point out all of your Lender’s errors
This is extremely important. The more errors your bank has made, the better your chance of postponement. Lenders and Trustees are afraid you will do this because it could mean they have executed a wrongful foreclosure. This is very expensive to the bank. It means that they’ve done something illegal and will have to go back and undo the foreclosure if caught. You want to play on this fear and make them realize there may be a problem if they move forward with your foreclosure. How can you make sure nothing is missed?
- Have an attorney review the communications you’ve had with your Trustee.
- Record every mistake that is made. This may include failing to review documents or calling you back in a timely manner. Be sure to point out anything that they told you they were going to do, such as run a review, but didn’t.
- Provide specifics. When your Lender makes a promise to you, record the employee name and ID number along with the date.
- If there’s confusion surrounding your case, try to point to the Lender as the cause of the confusion. Explain exactly what you did and the Lender failed to do. Did they violate investor guidelines? Did they say they’d call you back with an answer and never did? Lack of response is a strong argument, but you need to be able to support what you say with facts. You need to be able to show exactly what they did and how it affected the timing of your foreclosure.
There’s never an easy way to get through a foreclosure. It takes a toll on every part of your life. But there is help. Contact us at Ark Law Group and we’ll answer all of your questions and make sure you’re in the best position to get your postponement approved.