Part # 2 of a 2 Part Series.
http://activerain.com/groups/foreclosure
PLEASE NOTE: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney.
Foreclosure Prevention and Assitance Tips, How to Avoid Foreclosure:
Tip #11) DO hire/retain competent legal counsel! The foreclosure process is a very complicated and difficult one. It is imperative that you retain the help of a real-estate attorney who is familiar with foreclosures, and the methods of delaying them. You should consult with an attorney as soon as you receive the first notice of delinquency from your mortgage lender.
Tip #12) DO seek the help and advice of a competent REALTOR who is familiar with "Mortgage Loan Work-Out Program" alternatives and the "Pre-Foreclosure Short-Sale" process. They will be more than happy to assist you by providing you with the information/advice necessary to make the right decision for your particular situation.
Tip #13) DO take advantage of federally-funded homeowner assistance programs provided through H.U.D. (U.S. Dept of Housing and Urban Development) that can explain your alternatives to foreclosure, and direct you to programs designed to help the financially troubled homeowner avoid foreclosure.
Tip #14) DO contact your mortgage lender immediately when you first face economic difficulties that prevent you from making your monthly mortgage payments. During periods of short-term unemployment or other financial difficulty, most lenders will be willing to work with you---As long as you can get back on track within a period of one year or less.
Tip #15) DO maintain complete and accurate records of all correspondence (mail, phone calls, legal notices, etc) received from your mortgage lender in regards to your loan delinquency and the foreclosure proceedings being conducted against you. It is important that these records are maintained so that your attorney can provide you with a legal defense against the foreclosure process, and delay the sale of your property as long as possible.
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.
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.
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