Facing foreclosure and options running out?
Question:
Didn't want to lose the house but maybe I can't stand the stress of trying to keep it.
Can't afford legal bills. Anyone care to give some free advice as to where I might get an adea of my options?
Answer:
Difficult as this may seem Joe, you need to take control of your destiny right now, to make sure the choices are yours and you don't miss out on any possibility to make the best of them, minimise the damage to your credit rating and keep any equity you may have in the property..
Have you actually sat down with the lender to discuss whether keeping vs selling the property is the best option, or have you already made the decision that to sell is the only way out?
The existing lender is the first to approach to see if there is any chance of a workout. Your lender will be motivated to explore refinancing options, but not if the figures indicate that you will be facing foreclosure again in 6 months.
You will need to go through much the same financial analysis as getting the loan in the first place. If your existing loans total up to 70% of CMV of the house you may not succeed in refinancing.
The lender needs to know of the attempts you have made to sell so he knows you are serious about meeting your financial obligations, and also to get an idea of how difficult it may be for the him to recoup the loan default amount via foreclosure. A full and frank discussion and request for help from the lender is free!
Consider family loans to get you current. Hard money loans for the same purpose will be possible if you have some equity in the house, you can get approval in a matter of days since credit and income are of lesser importance.
There are nationally recognised Mortgage Assistance programs available to avoid foreclosure, and pro-bono legal assistance (without fee) available in your State.
At the same time you should continue to market your property actively and try to keep presentation to a good standard. If you can't afford anything else, keep it clean.
Make sure your listing agent knows your urgency, and consider any other opportunity that is presented to get you the best free marketing coverage.
call Mike Davenport at (805) 730-7450. he is the Director of Customer Service of The Help Project. His hours are 9AM to 5PM PST.
not sure ... maybe file bankruptcy and that might slow down the foreclosure action protect your house a bit longer to give you the opportunity to file it. you might not have to go through with the actual bankruptcy just start the proceedings. i would look at the American Bar Association website and see about free legal aid. you could also go to lawyers.com ask questions. consult with real estate attorneys for the best advice. is your house listed as a FSBO or through an agent ? can you terminate the agent if he / she is not performing well and hire another one ?
is your house showing well ? have you cleaned up everthing / lightbulbs, taken clothes out of the closet so the closets look bigger. removed extra furniture from rooms so the rooms look larger. kept the yard neat , so it has curb appeal. proper staging is important in the sale. ask your realtor if there is anything you can do to improve the staging of the house.
There are many dealers out there who are looking for homes from people like you, facing foreclosure. Unfortunately, they know that the longer the negotiation goes on, the more desperate you get.
I'd suggest contacting at least three such dealers, (do a search for "sell distressed house") let them know that you are collecting competitive bids, and that you will select the best one and close on it in 2 weeks. Giving a clear deadline means that you are serious, and they had better give you their highest bid, because another dealer will get the house.
Go ahead and start packing (and look for an apartment) otherwise you don't look serious. The earlier you can get completely out, the better.
In order to protect yourself, be sure to have your own lawyer present at your closing, and ensure that your loan is paid as part of the transfer of deed.
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