FORECLOSURE – WHAT IT IS AND HOW IT WORKS
What exactly is “foreclosure?”	It’s when your mortgage company repossesses your house and evicts you because you are behind on payments. Homeowner’s associations and property tax entities (the County, school district, etc.) can foreclose also. But most foreclosures on homesteads are done by mortgage companies.
How is my house repossessed?	It is sold at auction. The auction will be at the county courthouse on the first Tuesday of the month.
If my house gets foreclosed on, can I get it back?	No. If your home gets foreclosed on by your mortgage company, you can’t get it back.
Who buys my house?	Either a bidder (typically a real estate investor) or the mortgage company. If nobody bids on your home, your mortgage company “takes it back.”
What happens after the foreclosure?	The new owner will contact you and ask you to leave and then evict you if you don’t leave immediately. If a bidder buys the home, he will probably contact you within a day or two and ask you to leave. A mortgage company might take 1-4 weeks to contact you and ask you to leave. If you don’t leave when the bidder or mortgage company contacts you, they will go to court and have you evicted.
How do I stop the foreclosure?	To stop the foreclosure, you can… ·         File bankruptcy ·         Get a Temporary Restraining Order (“TRO”) ·         Pay your mortgage current before the foreclosure ·         Try to work something out with the mortgage company
Return to top of page          Return to main page          Submit case info online

FORECLOSURE MYTHS
They can’t take my house. It’s my homestead.	Sure they can. The homestead law makes it so that judgment creditors—creditors that sue you and get a court judgment against you—can’t take your house to pay the judgment.    Your mortgage company can and will foreclose on you if you don’t pay them.
My mortgage company has to work out payment arrangements with me.	No, they don’t. The only right you have is the right to pay your mortgage completely current before the foreclosure date. Your mortgage company is allowed to make payment arrangements with you if they choose to. But your mortgage company is not required to make any payment arrangements with you whatsoever.
My mortgage company is “working with me” so they won’t foreclose on me.	Maybe. But you need to be extremely careful!!!    Just because your mortgage company is talking to you about payment arrangements doesn’t necessarily mean they called off the foreclosure.   When you call about payment arrangements, they are required to talk to you. Don’t assume that just because they are talking to you (or even taking a forbearance application from you) that they are not going forward with the foreclosure.   The only way you can know for sure that your foreclosure sale is cancelled is if you have a letter from your mortgage company saying that your foreclosure sale is cancelled.

Return to top of page          Return to main page          Submit case info online

HOW TO STOP A FORECLOSURE
Pay Completely Current. NOW.	You have the right to stop your foreclosure by paying your mortgage current. You will have to pay all past due payments, late fees, and legal fees. Paying your mortgage current is called “reinstating” your loan. You will need to call your mortgage company and request the “reinstatement amount” from them and then pay that amount.
Try to re-do your mortgage or sell your home	Beware! Trying to re-do your mortgage just before a foreclosure is very risky. Just because you talk to your mortgage company about re-doing your mortgage does not mean that they will call off the foreclosure sale.    Forbearance – what it is: “Make a payment plus a couple hundred bucks each month until you’re current.” This is the most common thing to do to stop a foreclosure.   Loan modification – what it is: “Add the past due amount to your current mortgage balance and take out a new 30-year mortgage for a higher loan amount.” This is the best solution, but mortgage companies rarely agree to it.   Short sale – what it is: “Mortgage company agrees to allow you to sell the house for less than you owe.” Advice: don’t do it. It will probably go down as a foreclosure on your credit, and you’ll still owe the difference.
Temporary Restraining Order – “TRO”	This involves getting a judge to order the mortgage company not to foreclose on you. The order the judge signs is called a “temporary restraining order” or a “TRO” for short.   The judge is not required to give you a TRO, but you’ll probably get it if you request it. The Heston Law Firm has applied for dozens of TROs and has gotten the TRO every single time.   A TRO will give you, probably, 2-3 months before your home is posted for foreclosure again. So if you don’t want to (or can’t) file bankruptcy and you just need a couple of months to either pay current or sell the home, a TRO may be your best option.
File Chapter 13	This is the surest way to stop your foreclosure. If you file bankruptcy (and get an automatic stay) before your foreclosure date, then your foreclosure WILL BE STOPPED.