I have to foreclose on my home. Advice and steps involved?
My wife and I own a townhouse in Orlando, FL. My job in Orlando was ending due to the recession and the job outlook looked grim. I took a job in Phoenix, AZ while my wife quit her job and is having some trouble finding one in Phoenix. We have a professional leasing company find tenants for our town house while we rented a condo in Phoenix. Since my wife isn’t working, we are having difficulties paying our rent plus part of the mortgage (the rent doesn’t cover all of the mortgage plus our HOA fees each month). We thought about a short sale, but then was told that since we are not the primary residents in our townhouse, then a short sale wasn’t an option, which leads us to foreclosure. I don’t really want to do it, but I have lost over 100k in our home in the last 2 years and it’s financially draining on us. What are the steps in foreclosing a home? Do we just stop making payments? Do we advise our lending company first? I always hear of people just walking away from there homes, but there is got to be more to it than that. Any advice would be great.
Thanks.
because of help from the fed, many changes have occurred. I suggest I help guide you
for free on keeping the condo………and maybe selling it creatively.
[like selling part of it!]
June 19th, 2010 at 8:27 am
because of help from the fed, many changes have occurred. I suggest I help guide you
for free on keeping the condo………and maybe selling it creatively.
[like selling part of it!]
References :
RE broker
kkemper1@mindspring.com
June 19th, 2010 at 8:52 am
The truth is that you have 4 options at this point. Foreclosure, deed in lieu of foreclosure, or a quick sale at a reduced price or loan modification.
Option 1. A foreclosure is basically a law suit where the lender sues you for breach of contract for not paying the mortgage. The lender included repossession and liquidation as a remedy to such a situation, but it can’t simply take the property from you without a Judge’s order. So they have to sue you for it. In most cases when you sue someone you have all sorts of fees to pay like court and lawyer fees and the loser has to pay for both parties to the law suit. So these fees get tacked on to your present debt and if the lender is unable to liquidate the property to cover the total debt they will likely come after you for the balance.
Option 2. A deed in lieu of foreclosure is when you voluntarily sign over the deed to the lender to avoid the extra fees associated with foreclosure. The lender will try to liquidate the property in the same manner mentioned above and come after you for the balance, but the balance won’t be as large without the extra fees
Option 3. Sell your property at a reduced price that is equal to your loan payoff plus all fees associated with the sale, assuming you have enough equity to price the house well. A quick sale would alleviate your debt all together and protect your other assets from potential seizure. It may be in your best interest to try to sell it for as little as possible such that you may even have to bring money to the closing table , but you would be rewarded by keeping your credit in tact.
Option 4 Loan modification! Often you can explain your situation to your lender and have your loan modified to defer principal payments for a while making your payment tolerable until the economy bounces back.
I am not sure what your financial situation is as to how long you can keep your head above water, but if it is at all possible to avoid foreclosure, make it happen.
References :
Realtor
June 19th, 2010 at 9:12 am
First, you can’t do a short sale until foreclosure has been filed. Talk to your mortgagee regarding a short sale. I recently had a duplex go into foreclosure and requested a short sale package from my mortgagee and they complied. I never got into a short sale as I negotiated a settlement with my mortgagee. As far as foreclosure, just stop making payments and about 30 days later you will receive a call from your mortgagee. Respond to their calls and be straight forward and tell them you can no longer afford the property. Ask for the phone number of their loss mitigation department and talk to them about a short sale.
realtor.sailor
References :
I’m a Florida Realtor
June 19th, 2010 at 9:29 am
If you are having a difficult time because of the debt on your home, you might want to consider a forensic audit of your loan process.
Lenders have many requirements that they are supposed to follow when making a loan and in the last few years have not fulfilled their requirements.
Nearly all loans that were – ARM’s, Stated Income, Investor, No Doc, had a prepayment penalty, were made to someone speaking a foreign language – were made out of compliance. The audit will show what the lender has done in violation of the lending requirements.
You use their violations to give yourself a position of strength in dealing with them, instead of being under their thumb begging for help.
People can use this information to force a lender to reduce the principal amount, interest rate, the payment, or to complete a short sale.
I can send you an example of the 67 page report you receive after a forensic audit is completed. You will be amazed at the violations that are common in these audits.
If you’d like more information email me at paulevans@centurytel.net
Good luck!
References :