Foreclosure: how can i still prevent it??

Prevent foreclosure

The case of emergency: you are about to have your property foreclosed and somehow you want to prevent it? What may sound like an impossible task at first, can still work in case of doubt. However, one thing is certain: the matter is not entirely uncomplicated. But what can help?

How does it come to a foreclosure?

If you pay off your property in monthly installments, you usually sign a loan agreement with your bank. If you subsequently fail to meet your payment obligations, the worst case scenario is termination of the contract. In order for the credit institution to get its money, it will quickly apply for foreclosure in such a situation. If you, as a property owner, want to take action against it, you are faced with a difficult task.

Pay off or suspend debts: talks with the bank can help

The first possibility to prevent a foreclosure is almost obvious: talk to your bank. In particular, if your financial hardship is not permanent, relief can be found either by agreeing to an adjusted installment payment or even by temporarily deferring repayment of the loan. However, there is no guarantee that the bank will accept such offers. However, if your solvency is secured in this way, the bank will also benefit from it. Because also for them a foreclosure means expenditure. A payment without detours is much easier to handle for all parties. Attempting to achieve something in this way can in any case do no harm and should not be neglected.

A temporary suspension is also possible

If the bank refuses, there are other lifelines: either the creditor withdraws his application for foreclosure himself, or you apply for a temporary injunction. With the latter there are again different possibilities:

  1. A right evident from the land register is known, which prevents the forced sale or the continuation of the proceedings (§ 28 ZVG) or
  2. The creditor grants a temporary injunction

You can file a motion for temporary suspension within two weeks after you have been informed about the foreclosure. If the creditor wants to give up the proceedings of his own accord and withdraws his own application, you do not have to do anything further.

Important: in the case of an interim suspension, the proceedings are initially only suspended for six months. Furthermore, it is necessary that you show the court that you can pay the outstanding debts within this time. However, the creditor may again authorize recruitment after the expiry of this period. If he does this a total of three times, the entire procedure is considered to be permanently suspended.

An attorney or insolvency counselor can assist you

A constructive exchange with your creditors is the be-all and end-all. If the going gets tough, you will not have to deal with the situation on your own. A lawyer or insolvency consultant can make contact with your creditors and, if necessary. Reach out-of-court settlements. Often this can save a lot of time and nerves. So do not hesitate to get appropriate support.