Our law firm recently represented a client after the foreclosure sale occurred. While there are few options to try to save the property after the foreclosure sale has occurred and we would encourage every potential client to contact us in advance of the foreclosure sale date, there is a possibility of overturning the foreclosure sale by filing Exceptions to the foreclosure sale. In this case, we filed Exceptions to the conduct of the foreclosure sale. This provided additional time to attempt to negotiate a Loan Modification with the lender while the Exceptions were pending. 

Our law firm recently represented a client after the foreclosure sale occurred. While there are few options to try to save the property after the foreclosure sale has occurred and we would encourage every potential client to contact us in advance of the foreclosure sale date, there is a possibility of overturning the foreclosure sale by filing Exceptions to the foreclosure sale. In this case, we filed Exceptions to the conduct of the foreclosure sale. This provided additional time to attempt to negotiate a Loan Modification with the lender while the Exceptions were pending. The odds of winning at a hearing on Exceptions are extremely low. The homeowner would need to prove that there was a material flaw in the foreclosure sale process. Many typical defenses have been stripped away by case law.

In this particular situation, we were fortunate to obtain a loan modification and the lender has filed to undo the foreclosure sale. This particular loan modification modifies the balance of the loan with the interest rate of 2% and a maturity date of July 1, 2037. After a period of five (5) years, the interest rate increase to 3.98% for the remainder of the term. There is a balloon payment due at maturity; however, I view this as positive for the homeowner since it allows easier flexibility to make lower mortgage payments and the balloon payment would not come due until 2037. Many things can happen before the balloon payment would be due. This loan modification worked out very well and Exceptions are a great tool in foreclosure prevention.

For more information on how our firm can help you with your Foreclosure matters, contact us today!