Intent To Foreclose
Although
the foreclosure process varies from state to state, if you have not
received a notice that your lender intends to foreclose on your home
after three
months
you
will
probably
be seeing
one soon.
Receiving this notification means that your time to resolve foreclosure
is almost up. Although you remain in your home, focusing your attention
on another home and the moving process should begin.
Deed In Lieu Of Foreclosure
Another
means of avoiding foreclosure is to offer your lender a Deed In
Lieu of Foreclosure. This involves voluntarily surrendering the
deed to your home during foreclosure in return for being released from
the financial obligations of your mortgage. If
you owe substantially more on your home than it's market value your
lender may be reluctant to grant this option. In requesting a Deed
In Lieu of Foreclosure always submit your request in writing.
It may be easier to communicate with the Loss Mitigation Department of
your lender rather than the collection department for this offer.
The
advantage of a Deed In Lieu of Foreclosure Offer to you is
that you will not have a foreclosure on your credit record. Many lenders
require
that
a substantial amount of time has passed
before they will approve a mortgage loan for individuals with a foreclosure
on their credit record. Late payments are one thing. A foreclosure
on your credit record could prohibit you from receiving another mortgage
loan for several years.
Cash For Keys
Cash
For Keys is a term that is applied to the situation where the
homeowner volunteers to forego the eviction process in return for a
cash settlement. Some lenders may not accept this offer during foreclosure,
only after the foreclosure process is complete. In other
cases making the offer
to
your lender
in advance may give you the advantage of a higher settlement amount.
Expect
around
1% of your home's value as a settlement and make your offer in writing.
Bankruptcy
Filing
bankruptcy can be a way to delay or even avoid the foreclosure process
altogether. The decision to file bankruptcy during foreclosure should
be made with the advice of an attorney. Whether you qualify for a Chapter
13
or
a Chapter
7 bankruptcy, or even if you keep you home as a result of the process
are decisions that should always be made with legal advice. If you
are considering bankruptcy as an option you should be aware of the
costs involved and the time frame for filing as soon as possible.
Avoiding
Foreclosure Scams During Foreclosure
The
legal filings that accompany the foreclosure process are a matter of
public record. During foreclosure you will probably receive letters,
calls, and even personal visits from would be "Foreclosure
Saviors".
Although many of these people have good intentions you should
be cautious when dealing with them. There are various reasons these
people contact you but the overiding one is profit. Profit is the basis
for all business and shouldn't be viewed as a bad thing. Just make
sure that their profit is not your loss. A few primary rules to follow
are listed below.
- Never
Sign Over Your Deed To Anyone Unless They Pay Off Your Home
- Be
Very Reluctant To Pay Cash Up Front For Foreclosure Services
- Research
Their Services With The BBB and "Google" Them For Past
History
- Always
Ask For Any Agreement In Writing In Advance
- Never
Sign Any Blank Forms
- Don't
Give Anyone Your Personal Financial Information
- If
You Do Not Completely Understand Their Offer Get Legal Advice
Be
willing to listen to offers. There are just as many legitimate
real estate investors making offers to homeowners during foreclosures
as
there are scammers. It's up to you to sort them out.
Another
Home Is Just Around The Corner
Barring
a miracle you will be moving soon. Where you move and how you do it
depends on how well you do your planning. If you have children you
may want to try and stay within the same school district. Proximity
to friends and family may also be an important factor in choosing a
general area. The more time you allow yourself to find another home
the more likely it is you will have a favorable result.
