When you go into default, the first step is to do whatever is necessary to stop the default process as early as possible. Many homeowners procrastinate, while others overreact. Some even fall prey to scam artists. The following guidelines will give you a better understanding of your options.
Contact your lender. Don’t wait for them to contact you. Simply call them, explain the situation, and ask them for suggestions. If you do reach an agreement with the lender, make sure they provide it in writing so that you're protected if they don't live up to their end of the bargain. However, before you sign anything, have it reviewed by a real estate attorney or local housing counseling agency approved by the U. S. Department of Housing and Urban Development. Visit www.hud.gov or call 800.569.4287 to find a local HUD-approved housing counseling agency.
Consider Your Alternatives. Alternatives could be to balance your budget, restructure payments, liquidate other assets, borrow the money from a friend or credit card, refinance the loan, or sell the property.
Deed in Lieu of Foreclosure . This means that you transfer ownership of your property to the foreclosing lender in order to stop the foreclosure proceedings. It's really a last resort for homeowners and should only be used if none of the other options, including selling your house, work. Fully investigate every other option before you decide to opt to deed your property to the lender in lieu of foreclosure.
Be Wary of Scams. If you need to refinance your loan to help you stop the foreclosure, there are reputable lenders out there who can help you out. And if you decide to sell your home before the foreclosure sale, there are qualified and reliable real estate agents able to assist you. But there are people out there who will try to take advantage of your situation. There are scammers who will promise to pay off what you owe if you hand over ownership of your property, usually through a quit claim deed. Once you move out, they rent it to someone else, and never pay off your loan. Another type of scammer is a phony counseling agency that offer to help for a fee. Once they get your money, they do nothing more.
Consult a Real Estate Professional. Whether you decide to restructure your payments, refinance, or sell or deed the property in lieu of foreclosure, you should enlist the help of a local real estate professional (real estate agent or attorney) to guide you through the process. Your local real estate agent can often give you a list of resources to help you stay in your home, and guide you in the right direction. They can also explain the short sale process and help you decide if this is the best option for you. Visit our website or give us a call for more information www.SDHorseProperty.com
Melissa A. Santich
Associate Broker, SFR, ePro
San Diego Horse Property