The foreclosure process is not an easy process to stop.
Banks are actually loath to start foreclosure proceedings because it is so extensive and complicated.
However in order to recover outstanding debt this process unfortunately has to steam along.
In many instances lenders will stop the foreclosure process if the home owner has approached them to restructure their debt or modify their loan.
And of course the will stop the process if the home owner manages to come up with the outstanding debt plus costs incurred to date.
Many home owners who find them selves undergoing the foreclosure process, find that it spirals out of control quite rapidly.
They are generally already gripped in the throes of financial difficulty and this often precludes them from actually being able to recover fully.
But it is possible to make the decision to stop foreclosure by taking certain steps, prioritizing debt and saving your home from foreclosure.
Every state in the US is subject to foreclosure laws; they generally run along similar lines with certain differences.
When the owner of a property cannot make their mortgage payments, they are usually given a certain amount of time called a grace period in which to pay.
This means that they have to come up with the money in terms of the default amounts, plus interest and any other costs incurred.
Unfortunately once the defaulter has still not made up this shortfall, they will be notified by the lender that the foreclosure is going to take place.
There are three different foreclosure processes, the non-judicial foreclosure being the fastest and least expensive procedure.
Judicial foreclosure is applicable in all US states, in a non-judicial foreclosure you have to act fast to stop foreclosure.
They use a method that is otherwise known as a Power of Sale, and this is a special clause inserted into the loan agreement that gives the lender or his representative the power to sell a property in lieu of a debt.
This foreclosure process is not available in all states as some states feel that the courts should have absolute power over foreclosure in order to ensure that the process is followed fairly.
There is an additional type of foreclosure called a "Strict Foreclosure".
This type of foreclosure allows a property to be automatically transferred to a mortgage lender if a judgment is made on a lawsuit.
The money from the sale of the property in a strict foreclosure is used first to clear property taxes.
Taxes always come top of the list in any foreclosure process and they take precedence over all other liens on a mortgage.
Thereafter other creditors and liens are paid and at the end of it al if there is any money left from the sale the balance is given to the borrower.
Many states also have provision in their laws for rights of redemption.
This can stop foreclosure even after an auction sale has taken place, and the owner is allowed to retrieve their home I they can pay the amount owing to the lender.