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Scott County IA Foreclosure Prevention Tips: #16 - #20 (Part #4 of 4 Parts)

By Paul David Hiebing

Real Estate Agent with Grampp Realty: Real Estate in the Quad-Cities Iowa : # S40848000

January 15, 2013 04:07 AM

Scott County Iowa Foreclosure Prevention Tips: #16 - #20: (Part #4 of 4)

(Part #4 of a 4 Part Series)

Group: http://activerain.com/groups/foreclosure

Website: http://activerain.com/pauldavidh0426

PLEASE NOTE: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney.

Tip #16) DO apply for any "Mortgage Loan Work-Out Programs" (if available, and they are right for you) from your lender. These programs are designed to prevent mortgage foreclosures by giving homeowners facing short-term economic difficulties a period of time (up to one year) to make reduced payments on their property, sometimes at a reduced interest rate.

Tip # 17) DO consider conducting a "Pre-Foreclosure, Short Sale" on your property. A "Short-Sale" is any sale in which the Net Proceeds of Sale (Sales Price minus Expenses of Sale, Back Property Taxes and Legal/Other Fees) is less than the amount you owe to satisfy your mortgage. Most lenders are willing to (and some are even required to) give you the opportunity to sell your home at "Fair Market Value" for a period of up to six months.

Tip #18) DO continue to complete routine maintenance and minor repairs to your home. In the event that pursuing a "Pre-Foreclosure Short-Sale" becomes the best alternative for your particular situation, it will still be imperative for your house to sell for the highest possible dollar in the shortest amount of time. Make sure your home is attractive to the potential buyer. The better your home shows, the higher the sales price you will receive.

Tip # 19) DO maintain Casualty/Fire/Theft Homeowners Insurance on your property. If you are responsible for paying your own homeowners insurance (outside of escrow) and you allow the policy to lapse (expire) you may be held financially responsible for any fire, theft or other damage that occurs to the property- Contact your insurance agent or Attorney for more information and further advice.

Tip #20) DO continue to pay your city/county property taxes (if possible, and you are not already behind on them). If you are responsible for paying your own property taxes (outside of escrow) and you fail to do so, your taxes may be sold at the County "tax-sale". Many States have laws allow the purchasers of your property taxes to charge you up to 2% interest per month (An annual percentage rate of 24%). All back property taxes must be paid at closing.