What can you do when your foreclosure is set for sale?

What is a Foreclosure?

A bank will usually foreclose on your house after you have failed to make four successive payments. The bank will send you a notice of default which is an indicator that they are intending on beginning foreclosure proceedings. These proceedings can usually take anywhere between six months up to a year.

What happens next?

If no action is taken on your part in response to the notice of default then the bank will set a date for your house to be sold on a foreclosure auction in order to recover a portion of the money that is still owed on your house. If there is a foreclosure date set on your house you must act quickly to attempt to save your house.

What are your options once a Foreclosure Sale Date is set?


    1. – The first and preferred method, from the bank’s point of view is through a process called “statutory redemption”. This is when you pay the bank the foreclosure sale price plus any interest. By doing so you will be allowed to stay in your house.

Loan Modification – Another option which will still allow you to keep your home is applying for a loan modification. Banks will work with you to modify your loan. As long as you can show the bank that you are willing and able to make payments toward the loan after the modification process. Additionally, they will also consider loan modification if you have gone through some kind of hardship, loss of employment, chronic sickness, or change in market rates. Although banks are usually open to loan modifications it is solely at their discretion if they choose to agree to the modification

Deed-in-Lieu of Foreclosure – If you are unable to recover your house through redemption and the bank denies your request for a loan modification then you may inquire with the bank about a deed-in-lieu. What this does is you and the bank come to an agreement to sign the deed of the house over to the bank to satisfy the outstanding debt in lieu of a foreclosure. This method saves you from any legal fees that may accompany a foreclosure and will also have a less severe effect on your credit.

Filing for Bankruptcy – Having an attorney assist you with filing for bankruptcy is another way to possibly convince the bank to modify the terms of your loan. If you are able to provide proof of hardship then the bank may be likely to approve new terms on your loan, however, this is not a guarantee and could just lead to a bankruptcy filing.

Short Sale – This method is when you compromise with the bank and agree to sell your property for a lower amount than what you owe. Most banks will agree to a short sale as they are willing to take a loss on the whole amount of the loan as long as they are able to recoup some of the outstanding amounts of the loan.

These are just some of the conventional methods to avoid your home being sold on foreclosure. As always communication with your lender is imperative in trying to avoid a foreclosure and coming to an amicable agreement that fits both parties. Although there may be an effect of your credit it is possible to minimize the damage. After you speak with your debt managers, always seek a consultation with an experienced attorney. The knowledgeable attorneys at EPGD Law are happy to help. To schedule a consultation, call (786) 837-6787 or email us info@epgdlaw.com.

*Disclaimer: This blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

EPGD Business Law is located in beautiful Coral Gables, West Palm Beach and historic Washington D.C. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Eric P. Gros-Dubois founded EPGD Business Law in 2013 and is the current head of the firm’s corporate, estate planning, and tax practice, and manages the firm’s Washington D.C. office. With a JD and MBA, and a specialization in finance, Eric is able to step back and view the legal world through a commercial lens while also acting as a trusted business advisor for his clients. He does his best to be solutions oriented, and tries to think like a business owner, not just a lawyer.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.



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