HOW TO AVOID FORECLOSURE
PARTIAL CLAIM Sometimes it is possible to get an interest-free loan from HUD. These loan funds are used to bring the mortgage current. This option is used when you are beyond four months delinquent, can't seem to catch up, haven't gone into foreclosure and can make the full regular payment.
PRE-FORECLOSURE SALE Lenders will sometimes delay the foreclosure process if you are trying to sell your home quickly to avoid foreclosure. If they feel confident that the home has enough equity to sell for enough to pay off the lien and will sell within 3 to 5 months, the lender will consider this option.
DEED-IN-LIEU This is a "last resort" option. Try all other options before you do this. A deed-in-lieu of foreclosure is basically where you hand the home to the lender and walk away. Obviously, this is not an option if you don't want to leave the house. If you feel this is an option for you, try selling the property first. A deed-in-lieu is still considered a foreclosure on your credit report.
BANKRUPTCY - CHAPTER 13 This is also a very "last resort" option. Before you decide to do this, talk to a couple of different attorneys regarding your options. The fact is that a Chapter 13 Bankruptcy can stall some foreclosure processes and work out repayment plans that work within your budget. Before you even consider this, however, talk to the lender directly.
AVOID SCAMS
There are many scams that you could fall victim to during this time of financial hardship. If a foreclosure has been filed on your property, it is public record and the scam artists will start appearing out of no where with promises of grandeur.
Do not sign anything! Do not sign your deed over to anyone! The only time you should be signing your deed over to anyone is if you are truly selling your home and transferring title. If someone is offering to purchase the home on assumption, you need to realize that an assumption does not release you from financial responsibility. Talk to the HUD counseling service with any questions about services that are being offered to you. Talk to your lender yourself before paying someone else to do this. Regardless of the promises that you hear, there is nothing that someone else can do for you that you can't do yourself. Be careful.
One last word of caution. If you decide to sell your property, check out your prospective buyer
Latest Articles