In Bankruptcy Questions

One reader asks, “Do I have to talk to my lender during foreclosure? We don’t plan to challenge the foreclosure. Should I send them a letter saying we don’t intend to abandon the house during the process?”

Short answer, “no.” You aren’t required to speak with your lender during a foreclosure process. However, the second part of the question raises some red flags. Once the foreclosure sale takes place the borrower no longer owns the property. It then belongs to whoever bought it at the auction. That could be the original lender or it could be a third party. Whoever it is, the borrower no longer has any legal right to remain in the house and can be evicted. Eviction can be a quick process and can result in the sheriff showing up and forcibly removing you from the property.

The point is, ignoring a legal problem such as this reader faces almost always results in undesirable consequences. It’s better to learn what your rights are and what the creditor’s rights are and then work together to resolve the dispute rather than ignore it.

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