Things You Need to Know about Foreclosure

What should you do?

things you need to know about foreclosure

  1. Whatever you do, DON’T LEAVE YOUR HOMEThis may negate any possibilities of receiving assistance from your lender
  2. Do not ignore letters from the lender.  You are not alone.  There are many more homeowners like you that can’t afford to make their mortgage payments. Many lenders along with the federal government are here to provide assistance to help you stay in your home if you qualify.
  3. Contact your lender by either calling or writing a letter to ask for assistance in obtaining a loan modification.
  4. Avoid bankruptcy; if at all possible, this will impair your credit for 10 years.
  5. Be prepared to provide documentation related to your monthly income, housing expenses, title and deeds to your property.
  6. Be aware of the deficiency judgments in your state.  Some states do not allow deficiency judgments and some will.  In most states, a deficiency judgment cannot be obtained when it is a purchase money mortgage or a non-judicial public sale.  That means that if your current loan was a refinance, a deficiency judgment is null and void.
  7. Be aware of all options available to you to modify your loan, refinance, or sell your property.
  8. Know what your legal rights are as a homeowner.  See my article
  9. Other things you need to know about foreclosure are “Scams.”  Be aware of scams and do not sign deeds to your property that will give someone else title. Remember, signing a deed does not relieve you from your mortgage obligation to the lender.
  10. Do not sign any papers from anyone including your lender that you do not understand. If your lender has promised a 30 year fixed rate loan at a given interest rate, be sure that it is exactly what they have promised and there are no misunderstandings.  (I have spoken with people who thought they had a 30 year fixed rate and later discovered that it was a 30 year fixed amortized loan that was due in 5 or 10 years).  Often times, lenders do not realize that you may not understand the mortgage lingo.
  11. Check with a lawyer or someone you trust before signing anything.
  12. Remember     stay in your home to qualify for assistance

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  1. Taeyang

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