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While red tape is blocking the loan modification process, home owners find it may be easier to stay in their home. Acknowledgement to this response is given to Todd Ruger whom covered this topic in the Herald Tribune. In Sarasota County Florida, lawyers are instructing homeowners to stay put. With the flood of paperwork filing into the courts, this may be the best advice ever.
If you pan out the situation with your creditor, this is usually the best solution. However, if the banks are being unresponsive, homeowners have a chance to get ahead in another race. If retaining possession of your home is not your primary concern, the staying rent free should be.
There are many guidelines that must be followed to put a home into foreclosure. Loan paperwork must be accurately completed and dubious loop holes must be scaled. Asking the lenders to provide proof of their right to foreclose, for example, can extend your foreclosure sale for up to 2 years. time to either plan for life after foreclosure, or to finalize a plan that works for both homeowner and bank. The worst possible outcome for a homeowner struggling through the foreclosure process is to leave the home. At the worst case, the added time in your home will give you the opportunity to build a nest egg capable of carrying the homeowner throughout the foreclosure process.
In 2006, 46,455 homes were placed into foreclosure in Manatee Country alone. With the foreclosure epidemic on the rise, Todd estimates that even more homes will be placed into foreclosure. With the legal system backed up with current cases, it can be assumed that the proceedings would extend from months into years.
Putting the savings of a few months rent free is a boon for most borrowers, but for others it will allow for many options after the foreclosure process. By biding your time with the lenders, you’re only opening doors in the future.
Todd shows an example of this in a Sarasota couple who filed for a 45 day extension on their loan. 6 months later the courts finally heard the case to the reason on why they needed the extension.
If you are behind in your payments, you may want to look at how to stall your Lender and the Foreclosure Advice. After all, you owe it to yourself to take advantage of any opportunity which may keep your home.
