Interviewer: Up until the minute of the auction, there are still things you can do to try to avoid the foreclosure?
James Logan: Absolutely, yes. You can file a bankruptcy to stop a foreclosure auction pretty much up until the moment of sale. Of course you don’t want to wait that long but I have seen a couple of court cases in bankruptcy court where the argument was “Well, we filed a case at 10:07 and the auction was held at 10:09”. As long as the case is filed, even that close to before the auction being held, it will stop the foreclosure of the house but clearly we prefer the people don’t wait till the last minute like that.
The Point in Time that an Individual Seeks the Services of an Attorney to Avoid Foreclosure
Interviewer: At what stage do people come to you, at all stages of the process or there are certain times where they freak out and they decide to call you?
James Logan: It becomes public record once the foreclosure is filed. When they first file the notice of intent to foreclose, the only people that get that are you and a copy to the State of Maryland Department of Labor. At that point, nobody knows that you’re in foreclosure. After they’ve done that and they’ve waited the 45 days, they can file a foreclosure in the courthouse. Then it becomes public record and anybody who has access to or anybody who’s interested could find out from the court records that there’s been a foreclosure filed on your house.
When the Foreclosure is Actually Filed in the Courthouse, it Becomes Public Knowledge
At that point, people start to get a lot of mail from various loan modification consultants or other investors may be trying to buy their house or of course, they’ll get a letter from us. That’s when a lot of people will act. Some people put-off the problem and they’ll wait until they actually get a notice of the foreclosure date and they’ll come and see us then, but we get people all through the process but when the foreclosure is actually filed at the courthouse, that’s when it becomes public knowledge that you’re in trouble and you’re behind in your mortgage.
There is No Way that Anyone Can Know About a Foreclosure Prior to it Being Filed in a Courthouse
Interviewer: So, usually it’s after that point that people will call you?
James Logan: That’s when we start to get calls, right. Because before that, nobody knows that you’re in foreclosure. It’s all private and behind the closed doors, so there’s really no way anyone can know you’re in foreclosure until they actually file a foreclosure with the court.
Common Questions on the Mind of an Individual Facing Foreclosure
Interviewer: What are some of the top questions they ask?
James Logan: A lot of people don’t understand anything about bankruptcy, so basically what they’ll ask is, “I just want to save my home”. I’ll explain to them depending on how close they are to the auction that there are various things that we can do to save your home. Number 1 and the most powerful thing is to file a bankruptcy. That can stop a foreclosure at any time for any reason. It’s pretty much a 100 per cent guaranteed to stop the foreclosure as long as you file it before the actual foreclosure happens.
An Attorney Can Also File a Mediation Request and Attend Mediation to Try and Work out a Loan Modification
If you call us ahead of time and give us more time to work, we can also file a mediation request on your behalf and attend the mediation with you to see if we can work out a loan modification or some other kind of a resolution to save your home that way. Or try to apply directly for a loan modification at the mortgage company. Depending on which company you’re with, sometimes that’s a better solution but obviously the sooner you call the more likely we are to be able to work a solution for you.