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ʻO ka hoʻopaʻa ʻana o ka moraki, ka leka hoʻopaʻa ʻana, a me ka hoʻēmi ʻana i ka pohō

He ʻokoʻa nā helu ulia pōpilikia ma ka ʻāina. Hoʻohana kēia ʻaoʻao i ka 911, ka helu no ʻAmelika a me Kanada. Nui nā ʻāina ʻē aʻe i hoʻohana i ka 112, 999, a i ʻole ka helu ʻē aʻe. E huli i ka helu no kou ʻāina.

ʻO ka hāʻule ʻana ma hope o kāu moraki home a i ʻole ka loaʻa ʻana o ka Notice of Default (NOD), Breach Letter, a i ʻole ** Foreclosure Summons** kekahi o nā pilikia kālā koʻikoʻi loa i hiki i ka ʻohana ke alo. Nui ka poʻe nona ka hale i ka makaʻu a hoʻōki i ka wehe ʻana i ka leka mai kā lākou mea lawelawe moraki no ka mea ke manaʻoʻiʻo nei lākou i ka manawa e haʻi ai kahi panakō i ka huaʻōlelo "foreclosure," ʻaʻole hiki ke nalowale ka hale ke ʻole hiki iā lākou ke kelepona koke i nā ʻumi kaukani kālā i nā uku i hala.

ʻO ka ʻoiaʻiʻo, hoʻokele ʻia nā mea hōʻaiʻē moraki a me nā mea lawelawe e nā kānāwai mālama mokuʻāina a me ke aupuni (e like me RESPA Regulation X, 12 CFR 1024.41 ma United States, ka Pre-Action Protocol for Possession Claims based on Mortgage Arrears in the United Kingdom, and red red. Ma lalo o ke kānāwai federal, ʻaʻole hiki i ka mea lawelawe moraki ke waiho i ka palapala hoʻopaʻa kānāwai mua a ʻoi aku ka nui o kāu hōʻaiʻē ma mua o **120 mau lā 'alemanaka **, a inā ʻoe e hoʻouna i kahi Loss Mitigation Application ʻoi aku ma mua o 37 mau lā kalena ma mua o ke kūʻai ʻana i hoʻopaʻa ʻia, ua pāpā ʻia ka mea lawelawe mai ka neʻe ʻana a i ʻole ka hoʻokō ʻana i kāu noi kudala a hoopau i kou mau pono hoopii. Hāʻawi kēia alakaʻi i kahi papa kuhikuhi ala e hoʻopau ai i nā kaʻina hana paʻa, e hoʻouna i kahi pūʻulu hōʻemi ʻo Loss Mitigation Package, hoʻoikaika i ka hoʻomanawanui ʻana i ka moraki a i ʻole ka hoʻololi ʻana i ka hōʻaiʻē, pale aku i ka hoʻopaʻa ʻana i ka hoʻokolokolo a me ka hoʻokolokolo ʻole, a pale aku i nā scam "foreclosure rescue".

E hana i kēia i kēia manawa

  1. E wehe koke i nā enveloppi mai kāu mea lawelawe moraki a i ʻole kahu mālama a hoʻopaʻa i ʻekolu mau lā koʻikoʻi: E kākau i lalo (1) i ka Date of First Delinquency (i ka manawa i uku ʻia ai kāu uku mua loa ʻaʻole i uku ʻia i kēlā me kēia mahina), (2) ka Cure Deadline i paʻi ʻia ma kāu Breach / Acceleration Letter (maʻamau he 30 mau lā), a me (3) no kekahi **Schedul **Scheduled. Ka lā palena pau ʻana o ka Kāhea ʻana ** (ma ka maʻamau 20 a 30 mau lā ma nā mokuʻāina paʻa hoʻokolokolo). ʻO kēlā me kēia pale kānāwai ma lalo o ke kānāwai pekelala a mokuʻāina e pili ana i ka nui o nā lā alemanaka i koe ma mua o ke kūʻai ʻana a i ʻole ka ʻaha hoʻokolokolo.
  2. E hoʻoholo inā hoʻohana kāu mokuʻāina a i ʻole ka mana i ka Judicial Foreclosure (ma o ka hoʻopiʻi hoʻokolokolo) a i ʻole Non-Judicial Foreclosure (Power of Sale through a trustee): Ma ka 22 US Judicial Foreclosure states (e like me New York, Florida, Illinois, New Jersey, Ohio, a me Pennsylvania), pono ka mea nāna e hāʻawi aku e hoʻopiʻi iā ʻoe i ka ʻaha hoʻokolokolo i kākau ʻia ** no ka pale ʻana i ka hoʻoholo ʻokoʻa maʻamau. Ma Non-Judicial Power of Sale states (e like me Kaleponi, Texas, Georgia, Washington, Virginia, a me Arizona), hoʻohana ka mea hāʻawi i kahi palapala hilinaʻi e hoʻonohonoho i kahi kūʻai kūʻai kahu ma hope o ka hoʻopaʻa ʻana i ka Notice of Default and Notice of Trustee's Sale me ka ʻole e hoʻopiʻi mua iā ʻoe ma ka ʻaha hoʻokolokolo.
  3. Kahea aku i ka Loss Mitigation / Home Retention Department a kāu mea lawelawe moraki a noi aku i "Loss Mitigation Application Packet" (Uniform Borrower Assistance Form): Ma lalo o 12 CFR 1024.40, pono kāu mea lawelawe e hoʻokaʻawale i nā limahana Hoʻokahi Point of Contact (SPOC) i hoʻolaʻa ʻia i kāu moʻokāki ma mua o ka pau ʻana o kāu hōʻaiʻē he 45 mau lā. E noi iā lākou e leka uila a leka uila i ka ʻeke palapala noi Loss Mitigation a e ʻike i ka **mea hoʻopukapuka a mea hōʻoiaʻiʻo paha ** e kākoʻo ana i kāu moraki (Fannie Mae, Freddie Mac, FHA / HUD, VA, USDA, a i ʻole kahi waihona hilinaʻi pilikino), ʻoiai nā mea hoʻopukapuka i kākoʻo ʻia e ke aupuni e kauoha i nā wailele hoʻololi pololei.
  4. E hoʻokaʻaʻike aku i kahi kākāʻōlelo HUD hale kūʻokoʻa i hōʻoia ʻia e ke aupuni i kēia lā: Ma ʻAmelika Hui Pū ʻIa, e kelepona i ka Homeowner's HOPE Hotline ma 1-888-995-4673 a i ʻole kipa consumerfinance.gov/find-a-housing-counselor e hana pū me kahi kākā'ōlelo hoʻolimalima hale ʻole i ʻāpono ʻia e HUD ma kūʻai ʻole. Hiki i ke kākā'ōlelo HUD ke hui pū i nā kelepona ala ʻekolu me kāu mea lawelawe moraki, hoʻopaʻa i kāu makemakika hoʻēmi i ka pohō, a kōkua iā ʻoe e noi no nā haʻawina Homeowner Assistance Fund (HAF).
  5. E hoʻouna i kahi "Poloi Hoʻopau Hoʻohaʻahaʻa i ke Alo" ma kahi o 37 mau lā alemanaka ma mua o ka lā kūʻai paʻa i hoʻopaʻa ʻia: Ma lalo o ka CFPB Dual-Tracking Ban (12 CFR 1024.41(f) a me (g)), inā loaʻa i kāu mea lawelawe kahi palapala hoʻēmi ** hoʻopau ** ma ka liʻiliʻi o 12, ** a i ʻole ka lā ma mua o ka 12, ** ʻo ka liʻiliʻi o ka lā ma mua o ka liʻiliʻi. nā lā alemanaka ma mua o ke kūʻai paʻa paʻa ), ua pāpā loa ʻia ka mea lawelawe e ke kānāwai pekelala mai ka hoʻomaka ʻana i ka hoʻopaʻa ʻana, ka neʻe ʻana no ka hoʻoholo paʻa ʻana a i ʻole ke kauoha kūʻai aku, a i ʻole ke alakaʻi ʻana i kahi kūʻai paʻa a hiki i ka loiloi piha ʻana o kāu noi a hoʻoholo ʻia kekahi hoʻopiʻi kūpono.
  6. Mai pūlima i kahi Quitclaim Deed, Warranty Deed, a i ʻole "sale-leaseback" aelike me kekahi ʻaoʻao ʻekolu e hoʻohiki ana e "hoʻopakele" i kou home: Nānā nā scammers foreclosure hoʻopakele i ka lehulehu. Inā hele mai kekahi i kou waiwai e ho'āʻo ana e hoʻololi i ka hoʻololi paʻa ponoʻī, wehe i ka pono, a i ʻole hoʻoweliweli kino me ka ʻole o ka mākaʻi a me ka palapala hoʻokolokolo i pūlima ʻia, e neʻe i kahi palekana a kāhea aku i kāu helu pilikia kūloko (911 ma United States a me Kanada, 112 ma waena o ka European Union, 999 ma United Kingdom) a i ʻole e nīnau i kā mākou helu pilikia papa kuhikuhi.

Danger

ʻAʻole loa e uku i ka uku mua i kekahi hui kūʻokoʻa, "ʻoihana loiloi moraki," a i ʻole loio loio e ʻōlelo ana hiki iā lākou ke kūkākūkā i kahi hoʻololi hōʻaiʻē a hoʻōki i kahi paʻa. Ma lalo o ke Kumukānāwai Mortgage Assistance Relief Services (MARS) Rule (Regulation O, 12 CFR Part 1015) a ka US Federal Trade Commission, ʻaʻole ʻae ʻia ** 100 pākēneka ** no kēlā me kēia hui e uku a hōʻiliʻili i hoʻokahi kālā ma nā uku ** a hiki i ka ** ua hāʻawi lākou i kahi hāʻawi hoʻololi hōʻaiʻē kākau mai kāu mea hāʻawi maoli a ua kau inoa a ʻae ʻoe i kēlā makana. 'A'ole 'ae 'ia ka ha'i 'ana aku iā 'oe e ho'ōki i ka kama'ilio 'ana me kāu mea lawelawe moraki a i 'ole e leka uila i kāu mau uku moraki i kahi moraki escrow 'ao'ao 'ekolu ma kahi o kāu panakō.

Ka holo ʻana o ka hoʻoholo: hoʻopau ʻana i kahi paʻa a me ka hoʻopaʻa ʻana i ka hoʻēmi pohō

flowchart TD
    Start["Uku moraki i hala, ua loaa ka palapala hookiekie, hoolaha no ka hewa, a i ole kahea ana o ka Aha."] --> StageCheck{"ʻAuhea kāu hōʻaiʻē ma ka Timeline Foreclosure?"}
    StageCheck -->|"Nā lā 1 a hiki i ka 120 Delinquent (Pre-Foreclosure Protected Window)"| Pre120["ʻAʻohe hoʻopaʻa i nā lā Federal 120-La Foreclosure (12 CFR 1024.41(f)(1))"]
    Pre120 --> ShortOrLong{"He manawa lōʻihi paha kāu pilikia kālā (3 a 12 mau mahina) a mau loa paha?"}
    ShortOrLong -->|"Paʻakikī no ka manawa (Holo ʻoihana, maʻi, pōʻino)"| Forbearance["Noi i ka hoʻolālā Forbearance Formal i ukali ʻia e ka hoʻopaneʻe ʻana i ka uku a i ʻole ke koi ʻāpana i ka pau ʻana o ka hoʻomanawanui."]
    ShortOrLong -->|"Hoemi Loaa Paa a Hoopae Kiekie"| SubmitPackage["E hoʻouna i ka ʻeke palapala noi hoʻemi i ka poho no ka hoʻoulu ʻana i ka paʻa paʻa pālua"]
    StageCheck -->|"Lā 120 i hala aku nei: Hoʻolaha ʻia no ka hoʻopaʻa ʻia ʻana a i ʻole ka ʻaha Kāhea ʻia"| ForeclosureType{"Hoʻokolokolo (Hoʻokolokolo Hoʻokolokolo) a i ʻole Hoʻokolokolo Kūʻai ʻole (Kūʻai Kūʻai)?"}
    ForeclosureType -->|"Kahea Hoopio Hookolokolo"| FileAnswer["ʻO ka pane ʻana i ka ʻAha Kākau + Noi i ka ʻaha kūkā hoʻopaʻa hoʻopaʻa ʻia i loko o 20 a 30 mau lā."]
    FileAnswer --> SubmitPackage
    ForeclosureType -->|"Hoʻolaha Kūkākūkā ʻAʻole no ke Kūʻai Kūʻē / Kahu Waiwai"| Check37Days{"Aia ma mua o 37 mau lā kalena i koe ma mua o ka lā kūʻai?"}
    Check37Days -->|"ʻAe, 38+ mau lā ma mua o ke kūʻai ʻana"| SubmitPackage
    SubmitPackage --> Eval["Pono ka mea lawelawe e ho'ōki i ke kūʻai ʻana (ka papa ʻelua-pepa), e loiloi i loko o 30 mau lā, a hāʻawi i ka hoʻopiʻi pono no 14 mau lā."]
    Check37Days -->|"ʻAʻole, emi iho ma mua o 37 mau lā (a i ʻole kūʻai ʻia i kēia pule)"| EmergencyHalt["Hoʻokuʻu ʻia ke kūʻai aku ʻana i ka pilikia: hoʻōla i nā mea i hala ma o ka hoʻihoʻi hou ʻana, faila TRO hoʻopiʻi no nā hewa RESPA, a i ʻole faila Mokuna 13 Bankruptcy Automatic Noho."]

KaʻAnuʻu Hana 1: E ʻike i ka palena manawa paʻa federal a me ka pale "Dual-Tracking".

Ma ʻAmelika Hui Pū ʻIa, hoʻokō ka Consumer Financial Protection Bureau (CFPB) i nā lula lawelawe moraki aupuni ma lalo o ka Real Estate Settlement Procedures Act (RESPA, Regulation X, 12 CFR Part 1024). ʻOiai ʻo ka waiwai kou ** hale noho nui** (a ʻaʻole ʻo kāu mea lawelawe he mea hāʻawi liʻiliʻi e lawelawe ana i nā hōʻaiʻē 5,000 a i ʻole ka liʻiliʻi), pono ka panakō e hoʻolohe i kahi kaʻina o ka manawa ma mua o ka lawe ʻana i kou home:

ʻO ka palena manawa RESPA Regulation X

Nā lā i hala aku nei / Milestone He aha ka mea i koi 'ia e ka mea lawelawe moraki e hana ʻO kāu pale kānāwai a me ka hana e pono ai
La 16 a hiki i ka lā 36 Ka hewa Early Intervention Live Contact (12 CFR 1024.39(a)): Pono ka mea lawelawe e hana me ka manao maikai e hookumu i ke kelepona ola ma ka 36th la o ka hewa e wehewehe i na koho hoemi ana. E pane i ke kelepona, e haʻi aku aia ʻoe i kahi pilikia kālā, a e noi koke i Hoʻomanawanui a i ʻole Loss Mitigation Packet.
La 45 Ka hewa ** Hoʻolaha Kākau & Hoʻomau o ka Hoʻokaʻaʻike (12 CFR 1024.39(b) & 1024.40)**: Ma ka 45th lā, pono ka mea lawelawe e leka uila i nā koho hoʻēmi i ka pohō a hoʻonoho iā Single Point of Contact (SPOC) i nā limahana. E hoʻopaʻa i ka hoʻolōʻihi kelepona pololei a hoʻouka i ka puka puka o kāu hui Hoʻokahi Point of Contact.
La 1 a i ka lā 120 Delinquent ** ʻO ka pāpā ʻana ma mua o 120 lā (12 CFR 1024.41(f)(1)): ʻAʻole ʻae ʻia kahi mea lawelawe e ke kānāwai federal mai ka hana ʻana i ka hoʻopaʻa paʻa mua ʻana a ʻoi aku ka hewa o kāu moraki ma mua o 120 mau lā kalena. E hoʻouna i kāu palapala noi hoʻemi holoʻokoʻa ma a ma mua paha o ka lā 120 no laila ʻaʻole hiki i ka mea lawelawe ke hoʻomaka i ka paʻa ʻana a hiki i ka hoʻoholo ʻana o kāu noi a me kekahi hoʻopiʻi.
** Ma mua o 37 mau lā ma mua o kahi kūʻai i hoʻonohonoho ʻia** Ka Hoʻopaʻa "Dual-Tracking" Post-Filing (12 CFR 1024.41(g)): Inā hoʻouna ʻoe i kahi Pila Hoʻopau Loss Mitigation i ʻoi aku ma mua o 37 mau lā alemanaka ma mua o ke kūʻai ʻana i hoʻopaʻa ʻia, pono ka mea lawelawe ** e kāpae koke i ka paʻa ʻana** a ʻaʻole hiki ke neʻe no ka hoʻokolokolo a paʻa i kahi kūʻai. I loko o 5 mau lā ʻoihana (12 CFR 1024.41(b)(2)), pono ka mea lawelawe e hōʻoia i ka loaʻa ʻana ma ke kākau ʻana a hōʻike inā ua piha ka ʻeke, a laila e loiloi i nā koho āpau i loko o 30 mau lā.
90+ mau lā ma mua o ke kūʻai ʻana Ka Pono Hoʻopiʻi Hoʻololi Loan 14-La (12 CFR 1024.41(h)): Inā hiki mai kāu palapala noi piha ma lalo o 90 mau lā ma mua o ke kūʻai ʻana a hōʻole ʻia no ka hoʻololi ʻana i ka hōʻaiʻē, loaʻa iā ʻoe 14 mau lā kalena e waiho i kahi hoʻopiʻi i nānā ʻia e nā limahana kūʻokoʻa. E waiho i ka hoʻopiʻi 14 lā inā kuhi hewa ka mea lawelawe i kāu loaʻa kālā, hoʻohana i ka loiloi hoʻonui ʻia, a i ʻole ka hoʻokuʻu ʻana i ka wailele hoʻololi o 40 makahiki.

Warning

Ma lalo o 12 CFR 1024.41(i), koi ʻia ka mea lawelawe moraki e hoʻokō i ka Regulation X nā pale ʻelua-tracking no kahi hoʻokahi palapala hoʻēmi poho holoʻokoʻa i ke ola o kāu hōʻaiʻē, UNLESS ʻoe i lawe mai i kāu moraki i kēia manawa ma hope o kahi noi mua. E hōʻoia i ka 100 pakeneka piha o kāu palapala hoʻemi ʻana i ka nalo a waiho ʻia me ka leka i hōʻoia ʻia a me nā palapala hoʻoili hoʻoili.

KaʻAnuʻu Hana 2: Hoʻopaʻa ʻia ʻo Judicial vs. Non-Judicial Foreclosure (A pehea e pale ai i kāu kaulike)

Pehea e hoʻomaka ai ka hoʻopaʻa ʻana, a inā paha e nānā ʻokoʻa ka luna kānāwai i ka hana o ka panakō, e hilinaʻi nui ʻia inā hoʻohana kou mana i kahi Mortgage (hoʻokō ʻia ma o nā ʻaha) a i ʻole ** Deed of Trust** me ka paukū "Power of Sale" (hoʻokō ʻia ma waho o ka ʻaha e kahi kahu).

Hoʻohālikelike: Hoʻoholo Hoʻokolokolo vs. Non-Judicial Foreclosure

Hiʻona Hoʻopaʻa hoʻokolokolo (hoʻokolokolo hoʻokolokolo) ʻAʻole hoʻokolokolo hoʻopaʻa ʻia (Mana o ke kūʻai aku / Trustee Auction)
Ma hea i hoʻohana ʻia ai Ma kahi o 22 mau mokuʻāina ʻAmelika (me NY, FL, IL, NJ, PA, OH, IN, CT, MA, SC, KY, LA, KS, IA, WI, ND, NE, NM, VT, DE, ME, HI), a me Kanada (BC, AB, SK, MB, NS) a me ka UK (ʻAha Hoʻokolokolo Kānāwai). Ma kahi o 28 mau mokuʻāina ʻAmelika a me DC (me CA, TX, WA, VA, GA, AZ, NV, OR, CO, MI, MN, NC, TN, MO, MD, UT, ID, AL, MS, AR, WV, NH, WY, AK), a me Power of Sale nā panalāʻau ma Canada (ON, NB)., PE
Pehea e hoʻomaka ai ke kaʻina hana Ma hope o ka lā 120, waiho ka mea hāʻawi i kahi Summons and Foreclosure Complaint i ka ʻaha mokuʻāina a hoʻopaʻa i kahi Lis Pendens ma nā moʻolelo ʻāina kalana. Ma hope o ka lā 120, hoʻopaʻa ka kahu i kahi Notice of Default (NOD) ma ke keʻena o ka mea kākau moʻolelo kalana, a ukali ʻia (maʻamau he 90 mau lā ma hope) e kahi Notice of Trustee's Sale (NOTS) e hoʻonohonoho ana i ka lā kūʻai.
He aha kāu e hana koke ai ** Waiho i kahi pane i kākau ʻia me ke Kakauolelo ʻAha i loko o 20 a 30 mau lā** o ka lawelawe ʻana, a hele i ka Mandatory Court Foreclosure Settlement Conference (koi ʻia ma nā mokuʻāina e like me NY ma lalo o CPLR 3408, IL, CT, a me NJ). E hoʻouna i kahi ** Palapala Hoʻoemi Pohō ** ma mua o 37 mau lā ma mua o ka lā kūʻai a ka Trustee. Inā hōʻole ka mea lawelawe i nā kānāwai RESPA a i ʻole nā ​​​​kānāwai o ka mokuʻāina, hiki i ka loio ke waiho i kahi hoʻopiʻi e noi ana i kahi Temporary Restraining Order (TRO) e kauoha i ke kūʻai.
Paʻa Kānāwai Koʻikoʻi Ka nele o Standing (ʻaʻole paʻa ka mea hoʻopiʻi i ka palapala hoʻohiki i kākoʻo mua ʻia i ka wā e waiho ai), ʻaʻole i hoʻouna ʻia i ka palapala hoʻolaha hoʻolaha 30 lā pono, a i ʻole RESPA mau ʻae ʻana. ʻO ka hoʻokō ʻole ʻana i nā lula pili pre-NOD, ka ʻimi ʻelua ʻoiai ke kali ʻia nei ka palapala noi holoʻokoʻa, ka Notice of Default, a i ʻole ka waiho ʻana i kahi ** Mokuna 13 Bankruptcy palapala noi ** ma mua o ke kūʻai ʻana.
Kuleana Hoʻolaʻa a me nā Hoʻoholo hemahema ʻO ka hapa nui o nā mokuʻāina hoʻokolokolo e ʻae i ka mea hāʻawi aku e ʻimi i kahi **Hoʻoholo Kuleana **, ʻoiai hāʻawi ka poʻe he nui i ka manawa ma hope o ke kūʻai ʻana ** Pono o ka Hoʻōla ʻana **. Many non-judicial states ban deficiency judgments on primary-residence purchase-money mortgages after a non-judicial trustee sale (such as California CCP 580b/580d, AZ, WA, and OR).

Step 3: Understand the "Loss Mitigation Waterfall" (Forbearance, Deferral, and Modification)

When you submit a Loss Mitigation Application, your mortgage servicer follows a strict mathematical "Loss Mitigation Waterfall" dictated by the agency or investor that owns or guarantees your mortgage (Fannie Mae, Freddie Mac, FHA / HUD, VA, or USDA). Look up whether Fannie Mae or Freddie Mac owns your loan using KnowYourOptions.com/loanlookup a i ʻole MyHome.FreddieMac.com.

The 5 tiers of Home Retention Loss Mitigation (Keeping your house)

  1. Formal Mortgage Forbearance Plan (3 to 12 Months):
    • Best for: Short-term, temporary financial shocks (job loss, temporary medical disability, natural disaster, or family leave).
    • How it works: Pauses or reduces your monthly mortgage payments for 3 to 6 months (extendable up to 12 months) while freezing foreclosure.
    • Key rule at the end of Forbearance: You are NEVER required to pay back all missed forbearance payments in a single lump sum at the end of the forbearance period on any Fannie Mae, Freddie Mac, FHA, VA, or USDA loan. Always request a Payment Deferral or FHA Partial Claim when exiting forbearance.
  2. Payment Deferral or FHA "Partial Claim" (Zero change to your monthly payment):
    • Best for: Homeowners who suffered a temporary hardship, have recovered their normal income, and can resume paying their regular monthly mortgage amount, but cannot pay the back arrears all at once.
    • How it works: Under the Fannie Mae / Freddie Mac Payment Deferral or FHA Standalone Partial Claim, the servicer moves 100 percent of your past-due arrears (up to 6 to 12 months of missed payments, or up to 30 percent of principal on FHA) into a non-interest-bearing (0% APR) subordinate balance due only when you sell, refinance, or pay off the mortgage at maturity.
  3. Repayment Plan (3 to 12 Months):
    • Best for: High-income borrowers who missed 1 or 2 payments and can afford to add a fraction of the arrears on top of their regular monthly payment.
  4. Loan Modification (Fannie/Freddie Flex Modification, FHA 40-Year Modification, or VA Modification):
    • Best for: Homeowners with a permanent reduction in income or deep arrears who need a lower monthly payment (often targeting a 20 percent payment reduction).
    • How it works: Capitalizes arrears into the balance, extends the repayment term out to 40 years (480 months) (authorized under 24 CFR 203.616 for FHA and Fannie/Freddie), and reduces the interest rate or sets aside principal forbearance. After you complete a 3-month Trial Period Plan (TPP) on time, the modification becomes permanent and dismisses the foreclosure.
  5. State Homeowner Assistance Fund (HAF) or Local Emergency Mortgage Grants:
    • Check with your HUD counselor whether your state Housing Finance Agency offers active Homeowner Assistance Fund grants (often up to 25,000 to 50,000 USD) to pay arrears directly to your servicer.

Step 4: How to assemble a "Facially Complete" Loss Mitigation Package

Over 60 percent of loan modification rejections happen because the servicer marks the packet "Incomplete" over a missing bank statement page or unsigned tax form. Use this checklist (printing on standard 21.6 by 27.9 centimeter, or 8.5 by 11 inch, sheets stored at least 1.5 meters, or 5 feet, above floor level):

  • Completed Uniform Borrower Assistance Form (Form 710 or servicer equivalent): Fill in every box (write "0.00" a i ʻole "N/A" instead of leaving blanks), check "I want to: Keep the property," and sign and date within 30 days.
  • Signed IRS Form 4506-C (IVES Request for Transcript of Tax Return): Make sure Line 3 matches the exact street address printed on your most recently filed Form 1040.
  • Complete Federal Tax Returns (Last 1 to 2 Years) with All Schedules: Include every page and schedule plus W-2 and 1099 forms.
  • 60 Days of Most Recent Consecutive Pay Stubs: Must show year-to-date earnings. Self-employed borrowers must attach a signed Year-to-Date Profit and Loss (P&L) Statement covering at least the most recent complete quarter.
  • 60 Days (2 Full Months) of Complete Bank Statements for All Accounts: Include every single numbered page (for example, Page 1 of 6 through Page 6 of 6, even if Page 6 is blank), or automated processor software will mark the packet "Incomplete."
  • Focused Hardship Letter (1 Page) and Proof of Non-Wage Income: Explain the specific date and cause of your hardship and attach award letters for Social Security, SSDI, VA disability, pension, or support income.

Step 5: Graceful exit options if you cannot afford the house (Saving your equity and credit)

If your income has permanently dropped so low that you cannot afford even a modified mortgage payment, never walk away and let the house go to a foreclosure auction:

  1. Conventional Equity Sale (If Your Home Is Worth More Than You Owe):
    • If your home's market value exceeds your mortgage balance plus arrears, list the house for sale on the open market with a licensed real estate agent immediately and send the signed Listing Agreement (and any Purchase Contract) to the servicer to request a Sale Postponement. Selling pays off the mortgage in full, stops the foreclosure, and puts 100 percent of your remaining net equity cash into your bank account.
  2. Approved "Short Sale" (If You Owe More Than the Home Is Worth):
    • If your home is underwater, request an approved Short Sale, where the lender accepts the market sale proceeds as payment in full, releases the lien, waives any deficiency judgment in writing, and often pays 3,000 to 7,500 USD in relocation assistance.
  3. Deed-in-Lieu of Foreclosure ("Cash for Keys"):
    • If there are no junior liens on title, you can voluntarily transfer the deed back to the lender in exchange for a complete release of personal mortgage liability and 3,000 to 7,500 USD in relocation funds.

Step 6: Emergency last-minute tools when a foreclosure auction is less than 37 days away

If your home is scheduled for auction within days and you missed the 37-day Regulation X cutoff, use one of these three emergency legal levers:

  1. Exercise Your Statutory "Right to Reinstate" (Cure Arrears Prior to Sale):
    • Standard mortgage contracts (Paragraph 19) and state statutes give you the legal right to stop the auction by paying the Reinstatement Amount (only the past-due monthly payments plus accrued late fees and foreclosure costs, not the entire mortgage principal) via wire or cashier's check. Demand a written Reinstatement Quote immediately.
  2. File a Civil Lawsuit for a Temporary Restraining Order (TRO) Based on Servicing Violations:
    • If the servicer engaged in illegal dual tracking (proceeding toward auction after you submitted a complete Loss Mitigation package more than 37 days before the sale) or failed to send required statutory notices, a foreclosure defense attorney can file a civil lawsuit and Motion for a Temporary Restraining Order (TRO) to enjoin the auction.
  3. File a Chapter 13 Bankruptcy Petition Before the Auction Gavel Falls (The Automatic Stay):
    • Under 11 U.S.C. 362(a), the exact moment you file a Chapter 13 (or Chapter 7) Bankruptcy petition with the federal bankruptcy court clerk, even 15 minutes before the scheduled auction, the federal Automatic Stay takes effect and immediately makes it illegal for the lender or sheriff to conduct the foreclosure auction (unless limited by multiple prior dismissals within 12 months under 11 U.S.C. 362©(3)/(4)).
    • Under 11 U.S.C. 1322(b)(5), Chapter 13 bankruptcy lets you force the mortgage bank into a 36-to-60-month (3-to-5-year) court-supervised repayment plan on your mortgage arrears while you resume regular ongoing monthly payments, permanently saving your home and equity.

Alakaʻi honua: United Kingdom, Kanada, a me Australia

  • In the United Kingdom (FCA Mortgage Charter, Pre-Action Protocol, and Section 36 Norgan Orders): Under Financial Conduct Authority (FCA) rules (MCOB 13) and the UK Mortgage Charter, lenders must treat repossession as a last resort after offering tailored forbearance (such as switching to interest-only payments for 6 months or extending the mortgage term) and complying with the Ministry of Justice Pre-Action Protocol for Possession Claims Based on Mortgage Arrears and 60-Day Breathing Space moratoriums. If taken to County Court, attend the hearing and ask the District Judge for a Suspended Possession Order (SPO) under Section 36 of the Administration of Justice Act 1970 (Cheltenham & Gloucester v Norgan), which lets you stay in your home by paying your normal monthly payment plus a small arrears contribution spread over the entire remaining mortgage term. Also check eligibility for Support for Mortgage Interest (SMI) loans.
  • In Canada (Power of Sale vs. Judicial Foreclosure and CMHC Assistance): In Power of Sale provinces (Ontario, NB, PEI, NL), once served with a Notice of Sale Under Mortgage after 15 days of default, Ontario homeowners have a 35-day statutory Redemption Period to reinstate the loan by paying arrears and costs under Section 22 of the Mortgages Act. In Judicial Foreclosure provinces (BC, AB, SK, MB, NS), the court grants an Order Nisi with a 6-month Redemption Period. If your mortgage is insured, call your lender and CMHC (1-800-668-2642) to request arrears capitalization, payment deferral, or amortization extension up to 40 years.
  • In Australia (National Credit Code Section 72 Hardship Notices and AFCA Stay): Email your bank's Financial Hardship Team stating: "I am giving a formal Hardship Notice under Section 72 of the National Credit Code." The bank has 21 days to respond. If the bank serves a Section 88 Default Notice (30 days to cure) and rejects your hardship request, lodge a free complaint with the Australian Financial Complaints Authority (AFCA) at afca.org.au before the 30-day notice expires, which legally freezes court repossession while AFCA investigates.

Tip

If your monthly mortgage payment jumped because of an "Escrow Shortage" (property tax or homeowners insurance increases), examine your Annual Escrow Statement. Under RESPA (12 CFR 1024.17(f)), you can ask your servicer to spread an escrow shortage over 12 to 60 months at 0 percent interest, shop for lower-cost hazard insurance, and apply for your county's Homestead Property Tax Exemption.

Nīnau pinepine

Why did my mortgage company return my partial check and refuse to take my money after I missed two or three payments?

Once a mortgage typically passes 60 to 90 days of delinquency and the servicer issues a formal **Breach / Acceleration Notice**, the servicer places your account on an automated **"Foreclosure / Strict Reinstatement Hold."** Under standard mortgage contract terms, once the debt is accelerated, the bank is no longer required to accept a single regular monthly payment because accepting a partial payment can legally waive the bank's acceleration notice in some states. Instead, the automated system rejects any payment that is less than the **full Reinstatement Amount** (all missed months plus late fees) **UNLESS** you have first entered into an approved written **Forbearance Plan, Repayment Plan, or Trial Loan Modification**. Do not mail random partial checks; keep those funds safe in your savings account until your Loss Mitigation plan is approved in writing.

Can the bank change the locks on my house or throw my belongings onto the street as soon as I receive a Notice of Default or Foreclosure Notice?

No, **100 percent never**. A Notice of Default, Breach Letter, or Foreclosure Summons is merely the **beginning** of a legal process that typically takes **6 to 18+ months** to conclude. Throughout the entire pre-foreclosure and foreclosure process, **you remain the legal owner of your home and have the absolute right to live inside it**. Even if a foreclosure auction eventually takes place months later, the new buyer or bank still cannot change your locks or touch your belongings on auction day; they must first serve a formal post-foreclosure notice to vacate and obtain a court **Writ of Possession / Eviction Order** executed by the County Sheriff. If a mortgage company contractor ("property preservation vendor") tries to padlock your door while you are still occupying the home, call the police immediately and file a complaint with the **CFPB** and your State Attorney General for illegal "trash-out" trespass.

What happens to my mortgage if my spouse or parent who was the only person on the mortgage loan dies or we get divorced?

Under the federal **Garn-St. Germain Depository Institutions Act of 1982 (12 U.S.C. 1701j-3(d))** and the **CFPB "Successors in Interest" Rule (12 CFR 1024.30 and 1024.31)**, when a home is transferred to a surviving spouse, child, or relative upon the **death of a borrower**, or transferred to a spouse in a **divorce decree or legal separation agreement**, the mortgage bank is **strictly prohibited by federal law from enforcing a "due-on-sale" clause** (it cannot demand that the loan be paid off or refinanced). Once you send the servicer proof of your status as a **Confirmed Successor in Interest** (such as the death certificate and will/heirship affidavit, or the divorce decree and quitclaim deed), federal Regulation X grants you **the exact same right to apply for Loss Mitigation, Forbearance, and a Loan Modification** as the original borrower had, **without requiring you to pass a credit check or refinance at higher interest rates**.

How can I spot a criminal "Foreclosure Rescue" or "Deed Theft" scam?

Watch out for four unmistakable red flags of a criminal foreclosure scam: (1) Anyone who contacts you unsolicited after your Notice of Default is recorded and asks you to **sign over the deed** (or a Quitclaim Deed, Grant Deed, or "Land Trust") under a promise that you can "rent the house back and buy it back later" (scammers immediately evict you, pocket your rent, or take out equity loans against your house and let it foreclose anyway); (2) Anyone who demands an **upfront wire, cashier's check, or retainer fee** for loan modification services (violating the federal FTC MARS Rule); (3) Anyone who offers a **"Forensic Mortgage Audit" or "Sovereign Citizen / Quiet Title"** scheme claiming your mortgage is void because the bank securitized the note; or (4) Anyone who instructs you to **stop talking to your mortgage servicer or HUD counselor** and send your mortgage payments to the company instead.

If my house is sold at a foreclosure auction for MORE than what I owed on the mortgage, who gets the extra money ("Surplus Funds")?

**You do.** A mortgage lender is legally entitled to collect **only** the exact unpaid principal, interest, escrow advances, and documented legal/auction costs owed on the debt. If your mortgage payoff was 220,000 USD and an investor bids 310,000 USD at the foreclosure auction, that extra **90,000 USD in "Foreclosure Surplus Funds" (or Excess Proceeds) belongs 100 percent to you** (after any valid junior liens like a second mortgage are paid). In addition, in the landmark 2023 unanimous decision ***Tyler v. Hennepin County* (598 U.S. 631)**, the United States Supreme Court ruled that even when a county seizes and sells a home for **unpaid property taxes**, keeping the homeowner's surplus equity above the tax debt violates the **Takings Clause of the Fifth Amendment**. Note that you do **not** need to pay a "surplus recovery company" 30 to 40 percent of your money to claim foreclosure surplus funds; you can file a standard **Motion or Claim for Surplus Funds** directly with the court clerk or foreclosure trustee yourself or through legal aid.

Can my Homeowners Association (HOA) or Condo Association foreclose on my house even if I am 100 percent current on my bank mortgage?

Yes, in the majority of US states, a Homeowners Association (HOA) or Condominium Association holds statutory power to record an **Assessment Lien** for unpaid monthly HOA dues or special assessments and **foreclose on your home**, even if your first mortgage with the bank is completely current and even if the HOA debt is only a few thousand dollars. If you receive an HOA Notice of Intent to Lien or HOA Foreclosure Notice, treat it as a high-priority emergency: contact the HOA board or property manager in writing immediately to request a statutory payment plan (many states, such as California, Colorado, Texas, and Maryland, require HOAs to offer a written payment plan and prohibit HOA foreclosure unless delinquent assessments exceed a statutory minimum dollar or month threshold, excluding fines).

Nānā ʻia nā kumu

  • Consumer Financial Protection Bureau (CFPB, United States): Real Estate Settlement Procedures Act (RESPA, Regulation X, 12 CFR Part 1024: Section 1024.39 Early Intervention, Section 1024.40 Continuity of Contact, Section 1024.41 Loss Mitigation Procedures Including the 120-Day Pre-Foreclosure Ban, 37-Day Dual-Tracking Prohibition, and 14-Day Appeal Rights, and Section 1024.30 Successors in Interest).
  • US Department of Housing and Urban Development (HUD), Fannie Mae, and Freddie Mac (United States): FHA Single Family Housing Policy Handbook 4000.1 (Loss Mitigation Waterfall, Standalone Partial Claim, and 40-Year Loan Modification under 24 CFR 203.616), Fannie Mae Servicing Guide (Payment Deferral and Flex Modification), and Garn-St. Germain Act (12 U.S.C. 1701j-3).
  • Federal Trade Commission (FTC, United States): Mortgage Assistance Relief Services (MARS) Rule (Regulation O, 12 CFR Part 1015) and Consumer Alerts on Foreclosure Rescue and Deed Theft Scams.
  • Supreme Court of the United States & United States Bankruptcy Code (United States): Tyler v. Hennepin County, 598 U.S. 631 (2023) (Constitutional Protection of Home Equity Surplus) and 11 U.S.C. 362 / 1322(b)(5) (Bankruptcy Automatic Stay and Chapter 13 Mortgage Arrears Cure).
  • Financial Conduct Authority (FCA) & Ministry of Justice (United Kingdom): MCOB 13 (Arrears and Repossessions), UK Mortgage Charter, Pre-Action Protocol for Possession Claims Based on Mortgage Arrears, and Administration of Justice Act 1970 Section 36 (Suspended Possession Orders).
  • Financial Consumer Agency of Canada & Canada Mortgage and Housing Corporation (Canada): Provincial Mortgages Act Power of Sale Redemption Rules vs. Judicial Foreclosure Order Nisi Procedures, and CMHC Homeowner Default Management Tools.
  • Australian Securities and Investments Commission (ASIC) & Australian Financial Complaints Authority (AFCA, Australia): National Credit Code Section 72 (Hardship Notices), Section 88 (Default Notices), and AFCA Complaint Enforcement Stays.

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