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About Steele V. Propp
Expertise
Can answer all questions on all areas of the foreclosure process both judicial and non-judicial. Also on loss mitigation and foreclosure prevention including loan modification, short sales and deed in lieu of foreclosure. Also can assist with questions on purchasing property in foreclosure and already bank owned (REO, Real Estate Owned). Both as an investor and/or a homeowner.

Experience
I have 18 years of working with the foreclosure industry as a Foreclosure Specialist. Currently work with over 20 major lenders as well as a dozen asset management companies. Head up the Bank Owned Property Division of the Schatz Real Estate Group located in Minneapolis, MN. Regularly consult and advise consumers from across the county.

Organizations
I belong to the Realtor Association at the National, State and Local levels. Also the Real Estate Investors Association. The Real Estate Educators Association. As well as number foreclosure industry organizations.

Publications
Consumer Reports, Money magazine, Consumer Digest and many local and national newspapers.

Education/Credentials
Bachelors Degree work in Psycholgy and Economics. Masters Degree work in Counseling Over 15 real estate designations. Specialized study of foreclosures and real estate.

Awards and Honors
Diamond Award from the Certified Residential Specialist (CRS) origanization. Chapter of the Heart as President of the Minnesota CRS Chapter

Past/Present Clients
GMAC Asset Management, First American REO, HomEquity REO, Keystone Asset Management and more.

You are here: Experts > Real Estate > Foreclosure > Foreclosure > How to stop/delay foreclosure by lender

Foreclosure - How to stop/delay foreclosure by lender

Expert: Steele V. Propp - 10/30/2009

Question
I am most concerned about my brothers well being, as he is in quite a jam with a foreclosure pending, and would greatly appreciate any advice you may offer.

Keith (my brother), and his wife, have owned their home in California for about 12 years. Keith was laid off from the computer field about 7-8 months ago, losing his $70k annual salary.

He sought the services of an attorney claiming to be able to modify the terms of his loan, by dealing directly with the lender. Keith was instructed by the attorney to stop paying the monthly mortgage payments at that time, and to look forward to payments he could now afford following a reduction in principle and new terms of his loans.

Month after month went by, during which time he was reassigned one attorney after another to handle his case. After continually being faced with no progress being made whatsoever, Keith was forced to fire the law office he was dealing with and begin negotiations with his lender directly. His lender was aware that he was learning a new trade, driving 18 wheel trucks, and that his salary would be approximately one half of what it was previously. Keith's wife took on a job working at the local hardware store as a clerk, to help make up part of the loss of income. Unfortunately, Keith was once again laid off from his job as a Class A truck driver, and is unable to return to that type of work.

When the lender became aware of the situation, the negotiations to modify his loan were terminated, and a foreclosure notice was posted on his front door. This occurred approximately one month ago.

Keith has a second mortgage as well so there is not a whole lot of equity, especially after the housing market crash occurred affecting nearly everyone in the country.

I cannot stress just how much this has affected his mental state and his overall outlook on things. It does not appear that the lender is willing to wait any further for Keith to learn yet another trade and become employed. so they decided to proceed with a foreclosure of his home.

Is there any thing at all that he can do at this point to halt the foreclosure, or possibly to delay it further, giving him time to find a new job? He does not have the cash on hand to make up all the missed payments over the last 8 months or so.

Any advice will be greatly appreciated, even though I am aware that the outlook may be grim. Certainly a lender would not want to modify the terms of a loan for someone who is unable to pay even the lesser amount at this point in time.

Thank you in advance for your time.

Doug

Answer
First of all let me extend my heart felt sympathy for your brother and this situation. It is a classic case of doing all the right things and still having bad things happen.

I want to be direct. Without a job, the lender can not do a loan modification. Government programs or not, this is still a determining factor. The determining factor.

As I am not an attorney, I can not give you legal advise. And your opinion of lawyers can't be real high right now. However, most attorneys are not like the ones your brother dealt with. Unfortunately we are seeing a lot of problems in this area as of late. Your brother is not alone.

The one thing that would/could/might delay foreclosure (as I understand it) is bankruptcy. It is used as a delay tactic in foreclosure defense. But I would consult with a good bankruptcy attorney versed in foreclosure law in your state. Get his/her advise on whether this would be a good tactic at this time.

I wish I had more to give you. I do have some good information on my website (cited below). Perhaps something there might be of assistance.

Good luck and God bless.

Steele V. Propp
Certified Distressed Property Expert
http://www.shortsalesminnesota.com

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