Precautions you should take
Here are several precautions that should help you avoid being "taken" by a scam:1. Never sign papers you do not fully understand.
2. Get all "promises" in writing.
3. Beware of any loan assumption where you are not formally released fromliability for your mortgage debt and contracts of sale.
4. Check with an Attorney or your Mortgage Company before entering any deal with your home.
5. If you are selling the house yourself to avoid foreclosure, make sure you check to see if there are any complaints against the prospective buyer.
You can contact your state's AttorneyGeneral, the State Real Estate Commission, or the local District Attorney'sConsumer Fraud Unit for this type of information.
Do a Pre-foreclosure sale if you haveexhausted every other option.
This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.
You may qualify if:
1) The "as is" appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value,
2) The loan is at least 2 months delinquent prior to the preforeclosure sale
3) you are able to sell your house within 3 to 5 months An additional benefit to this option is the assistance you will receive with the Seller-paid closing costs.
Deed-in-lieu of foreclosure
As a last resort, you may be able to voluntarily "give back" your property to the lender.You will still lose the house, but it will help your chances of getting another mortgage loan in the future.
You can qualify if:
1) you are in default and don't qualify for any of the other options;
2) your attempts at selling the house before foreclosure were unsuccessful;
3) you don't have another FHA mortgage in default.
Main points To Remember
1. Make every effort to not lose your home and damage your credit history.
2. Call or write your mortgage lender immediately.
3. Stay in your home to make sure you qualify for assistance.
4. Arrange an appointment with a housing counselor to explore your options. Call HUD-approved housing counseling agency.
5. Cooperate with the counselor or lender trying to help you.
6. Explore every alternative to losing your home.
7. Beware of fraud.
8. Do not sign anything you do not understand.
Remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.
9. Act now. Delaying can't help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.
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