Trying to head off foreclosure?

Question:

My wife and I divorced shortly after moving into a new house in a new subdivision. After we bought, the market dropped out (great timing huh). I cannot make the payment and raise my four kids who live with me on my salary. I have missed my third payment and now getting ready for foreclosure. A friend of mine told me about companies who buy property and work with the mortgage companies on a price (upside down loans) and I can walk away without being foreclosed on. Does anyone know about this? Do you know of any companies who do this type of business? thanks!

Answer:
1. The process is normally referred to as a 'short sale'.

2. Most companies are really no more than investors. Hence you do not need a company. You need someone that is competent.

3. Some agents (not many but definitely a select few) will help with the same process.

For a short sale to work the lender has to discount the loan enough so that the investor can make a profit. Some lenders will not or can not discount that much. It depends on the individual transaction.

The process can be very slow and you can never quite tell if the short sale offer will be accepted. Hence you do not want to stop any other activities you might have going on to correct the situation.

In some cases a lender will take the property back without a foreclosure if you sign the property over to them. It will depend on the title and if there are junior liens plus the lender's policies.

Speak with the lender. Asking for a loss mitigation specialist. They are the folks that work for the lender on their foreclosures. Find out what options they offer. They will likely have a process for submitting short sale requests.

Contact local RE agents to see if any have experience with short sales.

If you send me a note indicating what state you are in I can see if any of my investor contacts would be interested.

You can also go to investor forums and announce that you are selling and are open to discussions concerning short sales.

You will need legal representation so that you do not agree to something that would not suit your situation. You also need that attorney to be one that is really savvy with short sales and foreclosures. Otherwise a good solution might get rejected by them if they just do not understand.

In the end be prepared to move and have a foreclosure on your record. As it is the result of a divorce the situation can be understood by lenders in the future. A foreclosure will impact your ex-wife so maybe she needs to step up and help more. I am assuming the loan still shows her name in addition to your name.

Go to my blog below and then go to the link for CREOnline. That is a great investor forum and there is a special legal forum where you can post questions.

Nope; but I'd assume it depends on how far underwater you are on the loan. If you're looking at being 20-30 K in debt OVER the repurchace price of the home, you're in trouble.

Have you talked to the lender about a deed in lieu of foreclosure? Where you sign the deed over to them in exchange for paying out the outstanding debt and walk away?

yes there is ppl that can do that, i'm actually taking a course to do that myself, unfortunatly i'm not trained yet and wouldn't like to try such a risky move as my first investment. However, advertise in your local paper For Sale By Owner, to stop foreclosure, it might be embarraccing, but that's what i'll be looking for in the future, maybe go to the WHEALTH INTELLEGENCE ACADEMY website, you may be able to connect with someone via them, good luck, i wish i could help you more... ps,: do a google search on HARD MONEY LENDERS, than contact them to see if they are willing to buy your property and assist you to stop the foreclosure. There is still some time left! Hard Money Lenders are often real estate investors, also talk to your mortgage company for continuence for selling purpose. your bank does NOT want your house. They will be willing to help you if you let them know you are willing to sell.

the obove two answers are good advice. I dont know how much your payments are...but have you tried renting couple of rooms even if it means living crowded for a while? I wish I had better advice. Best of luck to you and to your kids...hang in there.

I would recommend contacting Chris from http://scbuyshouses.com

They help a lot of people in your situation every day to help them Stop foreclosure and save their credit from being hit with the "Foreclosure" scar.

Good luck with everything!

Holly

Let me guss she is above paying child support? IF you moved out she would have a free mortgage.

Best of luck

Trying to head off foreclosure?

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