Foreclosure Prevention Tips #6 through #10 (Part 2 of a 4 Part Series)

Part 2 of a 4-Part Series.  

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

Tip # 6) Don't attempt to qualify for a "Mortgage Loan Workout Program" if you no longer wish to live in your home. Or, if your home is going to cause additional/increasing financial burdens for you in the years to come. Work-Out programs are designed for short-term financial difficulties that will be cured in six months to no more two years. If your financial situation is not likely to improve in that time, or if your home is in need of significant structural/ mechanical improvements in the near future, it will probably be better to sell your home now, rather than allowing it to deteriorate further (and sell for even less) in the years to come.

Tip # 7) Don't attempt to sell your home "For Sale by Owner" (FSBO) in the belief that you can get more money from the sale of your home by avoiding the payment of a real estate commission.  Most mortgage lenders will require that you provide proof that your home be listed in the local Multiple Listing Service (MLS) of your local Board of REALTORS in order to consider it for a "Pre-Foreclosure Short-Sale".

Tip # 8) Don't become "greedy" when you do attempt to sell your home under a "Pre-Foreclosure Short-Sale".  Very few sellers ever receive any money at closing when conducting a "short-sale" (after all back fees and expenses are deducted). Your main objective is to sell the home at the highest price that the market will allow. A competent REALTOR will provide you with comparable "Sold/Listed" properties in your neighborhood, and will help you to determine your home's "fair-market value range". This is the price range in which your home should sell under normal market conditions. It is the most money you will receive for the home.

Tip # 9) Don't accept "Low-Ball" Offers to Purchase Real Estate that you receive on your home, "just to get the sale over with".  Only accept an offer that can be justified from using recent "Sold/Listed" Comparable properties. Your mortgage lender (and any other lien holders on the property) will always have the final say as to whether or not they will accept the "short-sale" offer- and they will always require that an appraisal be done on the home to justify the price offered. If the offer meets their expectations, they will accept it as written.

Tip # 10) DON'T panic!!! This is the most important point of all!!  As mentioned, the foreclosure process can take up to a year, and even longer in many cases. If you remain calm, and take the necessary steps as early in the process as possible, you and your mortgage lender may very well find an acceptable common solution to your mortgage delinquency/foreclosure problem.

Paul David Hiebing, REALTOR,  "The Quad-Cities Premier First-Time Homebuyer's Specialist"

HUD Approved Foreclosure Counselor. Do Not Lose Your Home to Foreclosure! Call me for the help you need!

Licensed in Iowa and Illinois

Grampp Realty/GMAC Real Estate
2500 18th Street
Bettendorf, Iowa 52722
Website: http://www.gmacrealestate.com/paulhiebing/
Office Phone:(563) 359-4401 Ext # 264
Cell Phone: (563) 508-1649
Office Fax: (563) 359-4405

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