Pre-foreclosure sale
This option is available if you have located a qualified buyer that can close on the sale of your home prior to the foreclosure sale date.
Often investors within our network are looking for properties to purchase.
They have instant funds to complete the sale and are willing to work out a plan that will best fit with your needs.
Short sale
This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.
You may qualify if:
The loan is at least 2 months delinquent;
You are able to sell your house within 3 to 5 months; and
A new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.
Deed-in-lieu of foreclosure
As a last resort, you may be able to voluntarily “give back” your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure is.
You can qualify if:
You are in default and don't qualify for any of the other options;
Your attempts at selling the house were unsuccessful;
You don't have another FHA mortgage in default.
SHOULD I BE AWARE OF ANYTHING ELSE?
Yes!
If you're selling your home, beware of buyers (including real estate agents) who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.
Special Note:
If you are planning to leave your or do nothing to resovle your foreclosure your lender will attempt to sell your home at the scheduled Foreclosure/ Trustee Sale. If the lender does not recieve the total amount that you owe by the sale of your home, they can then file a deficiency judgement against you for the remaining amount that you owe.
Therefore, if you do nothing,
you will lose your home and still owe money to your lender.
Be especially alert to the following:
Equity skimming.
In this type of scam, a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to him or her. The “buyer” then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose.
Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.
Phony (up-front cost) counseling agencies.
Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for an upfront fee. Be careful! Many of these “phony” agencies will take your money and provide little or no service. Make sure you receive something in writing from them (prior to sending them money) listing an assurance as to what you will be receiving for your money.
Special Note: Honorable companies will agree in writing to return your money if no (or little) service is performed.
Bankruptcy to stop foreclosure.
Attorneys receive compensation for Bankruptcy services just as any other legal service. Be wary of legal offices offering to put you into bankruptcy to stop your foreclosure. It may not be the wisest choice.
If you cannot make the scheduled payments set by the court you will discharged out of bankruptcy and back in foreclosure. This time with a bankruptcy on your record and with additional legal costs.
ARE THERE ANY PRECAUTIONS I CAN TAKE?
Here are several precautions that should help you avoid being “taken” by a scam artist:
Don't sign any papers you don’t fully understand.
Don’t prepay for any service(s) prior to the service being completed.
Beware of any contract of sale or loan assumption where you are not formally released from liability for your mortgage debt.
If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state’s Attorney General, the State Real Estate Commission, or the local District Attorney’s Consumer Fraud Unit for this type of information.
If you do nothing, YOU WILL LOSE YOUR HOME !
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