My home is being foreclosed on; can I still use refinance to stop foreclosure?
Answer:Yes. Every borrower has a redemption right and mortgage refinance to stop foreclosure can be used even when the foreclosure sale has taken place. However, not every state grants this right to borrowers. Some states as Texas don't; the foreclosure sale is final and the borrower cannot redeem their right over the property with refinance after the foreclosure sale has closed.
However, even if your home is being foreclosed on, refinance to stop foreclosure is a plausible way out. Foreclosures take time - at least three months after you miss a payment. You will have enough time to make refinance arrangements, or even take out a quick unsecured loan to cover for the late payments.
If your case is a severe one, that is, foreclosure auction is banging on your head, you still probably have a statutory right to redemption and may stay in your home from several months to a year. Until the redemption period expires, you still have a chance to get your house back by arranging a refinance even after the foreclosure.
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers