How can I stop a bank from foreclosing on a property?

Good question.

First, you should have the seller give you an authorization to release on their loan. Then you contact the bank after submitting this information so you can speak to the bank on the seller’s behalf.

First, you should try to request a loan modification. If the bank will not agree to this, then you may want to talk about a deed in lieu or a short sale with the bank. The larger the bank is that you are dealing with the more important it is to know their processes and systems.

Another way to stop a foreclosure is to purchase the mortgage note from the bank that owns it. Some larger banks may not be willing to sell one individual note but it is still a possible way to stop a foreclosure.

Finally, you can also stop a foreclosure by having a lawyer file various requests to stop foreclosure but this only works for a limited period of time. It might be good for one extension if you have a good lawyer but it won’t work forever.

Ultimately paying off the entire loan is the easiest way to stop a foreclosure although it does require having the cash handy to do this.

One other possibility is to try to negotiate a “short payoff” on the note where you ask the bank to allow you to pay some lower amount owed and they release the note. This saves the bank the time and hassle of foreclosure so they sometimes will consider it but it depends on many factors.

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
ben@benjaminzmiller.com

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