Can You Help Me Stop a
Foreclosure Action on My Home?
No licensed Real Estate Agent can stop a foreclosure action on a home. The reality is that nobody can stop a foreclosure. A foreclosure action is started by the bank that owns the mortgage on the home. The only way to STOP a foreclosure is to negotiate with the bank or sell the home.
The Maryland Real Estate Commission (MREC) and the Federal Government have strict guidelines about these transactions. They outline the way people can discuss foreclosures and short sales with homeowners. That includes licensed Real Estate Agents. If someone refers to themselves as a foreclosure avoidance specialist, they are breaking the law! Before you speak with anyone about your situation, make certain that they are not charging you for any services.
There are many circumstances (Death, Divorce, Job Transfer, to name a few) that can adversely impact a homeowners’ ability to keep their home. The only real way of stopping a foreclosure is to make the account current and then continue paying down the principal balance.
Sometimes it isn’t possible to make the payments on the mortgage in its current form. In that case, homeowners may be able to work out a loan modification with their lender(s). In a loan modification, the terms of the loan (interest rate, payment amounts, etc.) may be changed to make it so the borrower can keep their home and manage the payments. This is a time when the lender may request that a Broker Price Opinion (BPO) be done on the home.
If a loan modification isn’t possible, the next thing that a homeowner can consider is a “deed in lieu” agreement. This is where the lender actually takes back the deed from the homeowner. The lender then takes ownership and possession of the home and cancels the debt. The only other option that may be available to homeowners facing a foreclosure is selling the home. That would usually be through a short sale. This is where the property is sold for less than the outstanding mortgage value and the bank agrees to accept that price.
The licensed Real Estate Agents at DMS Properties, LLC Residential Real Estate Services have handled hundreds of home sales. Many of them were foreclosure (Bank-Owned or REO) and short sale transactions. Don’t hesitate to contact us to discuss your specific situation. That’s because each one is different. It is likely that the first thing we will do is help you learn the fair market value of the home. This is a FREE service that we provide. Always remember that you we will NEVER ask you to pay anything for our services or for our advice!