If past due mortgage amount is paid, does foreclosure stop?
My boyfriend's house is currently in foreclosure. He is six months behind on payments. The sale date is two months away. If he can come up with the past due amount and pay it to the lender, will the foreclosure go away?
- MKEisfunLv 41 decade agoBest Answer
That is up to the lender, but usually the would welcome having a loan brought up to date. He will probably have to pay late fees, legal fees and additional interest.
He should call them pronto to work this out.
- 1 decade ago
There are two redemption periods involved in a foreclosure. The first is generally six months, but is legally as long as the lender allows. With the current housing crisis, I've seen some last up to two years. During this period, an owner can pay all back payments, along with late fees and accrued interest, and they're back on track. The foreclosure goes away and the owner continues to make their scheduled payments as if nothing ever happened.
The second redemption period occurs after a sheriff's sale (which is what I assume you were referring to as "the sale date"). Once this occurs, the note must be paid in full, along with lawyer's fees, sheriff's fees, late fees, recording fees, and accrued interest.
Example: If you're $15,000 behind on a $150,000 mortgage, you can pay $15,000 plus interest and late fees, in the first redemption period, and you're back to square one with the bank. In the second redemption period, you'd owe $150,000 plus all of the above-listed fees.
Good luck, and if you have any other questions or concerns, feel free to email me @ email@example.com. If your issue is a bit long for an email, just ask for my phone number, and I'd be more than happy to chat with you over the phone.
- 1 decade ago
If he also pays the foreclosure fees.