How to get Lender to halt foreclosure

Question

I had a seller in foreclosure reach out to me this past week. The property that they are needing to sell is going to be foreclosed on this Tuesday. Due to the title company needing more documentation from the courthouse it doesn’t appear that the title company can issue a commitment in time to stop the foreclosure.

I realize the lenders have heard all kinds of excuses and lies from people, which is not the intention here since we can and plan to close. How would a person go about getting a lender to offer an additional amount of time? The contract is already at the title company and we have the funding to close tomorrow which is Monday, but we cannot close without a title commitment. Any suggestions?

Joe S. · Answer

We are prepared to pay off the loan now we simply need to get title work finished first.

Chad U. · Answer

Reach out to the lender and offer to pay off the loan. Obviously you would want something in writing with the owner to reflect that.  You would also run the risk that there is an issue with title and cannot close after the fact.

Tom Gimer · Answer

@Joe S. The owner/borrower could file BK and alert the lender/trustee and the automatic stay would prevent the scheduled auction sale from taking place. The trustee would need to file a motion to lift the stay in order to proceed and in the interim your title work could be completed. The owner/borrower would then dismiss the BK. Happens all the time.

However, if you're prepared to pay off the loan anyway, consider just participating in the foreclosure... the junior liens you are worried about assuming would likely be extinguished in that process.