Upcoming Foreclosures

Can HUD have a bank stop foreclosure?

or is it up to the lender. We have been told we qualify for 2 different options by a HUD counselor. Can the bank refuse to cooperate? We do pay our bills we were set back by Hurricane Ike. We have contacted the bank, but they are not trying to work with us.

Public Comments

1. Of course the bank can refuse to cooperate......the HUD does not own nor operate the bank. Banks are under no obligation to work with you
2. Probably up to lender. The loan you signed said you will allow bank to foreclose if you miss payments. Keep talking with lender. This is to their best interest. It will be 18 months before they sell that home if they foreclose. No one wants that.
3. Unfortunately they can be difficult. However if all else fails there are options available. This is not ideal but it does offer some stability for you and your family. You can use a sell and rent back scheme to avoid repossession. However if they are foeclosing I suspect this may not be an option. However still worth looking into maybe. http://www.propertycashpoint.co.uk
4. Well, the answer is it depends. Do you have an FHA loan? If so then it is insured by HUD and the lender is supposed to send you a "work-out package" (i.e. budget worksheet, hardship letter, income information) for you to complete before they go through with the foreclosure. Sometimes they don't do this, but if you contact their loss mitigation department you should be able to request one. If its not an FHA, the lender still can do the workout with you. But HUD would not be involved. If they won;t work with you, contact your state banking department or attorney generals office. The HUD counselor you are working with should have contacts for you.