Short Sale, Foreclosure and Strategic Default

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Wednesday, November 21, 2007

You Can Avoid Foreclosure and Keep Your Home

You Can Avoid Foreclosure and Keep Your Home: "If keeping your home is not an option - call your lender to discuss these possibilities: - (Top) * Sale: If you can no longer afford your home, your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to use the services of a real estate professional who can aggressively market the property. * Pre-foreclosure sale or short payoff: If you can't sell the property for the full amount of the loan, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if: o The loan is at least 2 months delinquent o You (or your real estate professional) can sell the house within 3 to 5 months o A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines * Assumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable. * Deed-in-lieu of foreclosure: As a last resort, you 'give back' your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might so"

This information is good in general, but it does not necessarily apply to owners of California properties. You definitely need to speak with a California Real Estate Attorney before selecting any of these options.

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