Working with an investor that works closely with attorneys is the least expensive most attractive option.
Mortgage Release (Deed-in-Lieu)
How the Solution Works.
|You find a buyer and sell the home.||You sign the title back over to the mortgage lender.||Your home is sold at a public auction.||Sell your home to an investor for cash.|
Does It Stop the Foreclosure?
|Yes and no. It will stop if you’re able to sell the home.||Yes, as soon as you sign over the title the foreclosure stops.||No. Your property will be seized.||Yes. The payments become current by the investor.|
Is a Future Fannie Mae Mortgage Possible?
|Yes, you’ll qualify again in 2 years.||Yes, you’ll qualify again in 2 years.||Yes. Give us a call.||Yes. Give us a call.|
Is 1st Mortgage DebtForgiven?
|Yes and no. You might still have additional debt to pay.||Yes and no. You might still have part of themortgage to pay.||No. You must pay the balance of the mortgage after the auction.||Yes. The investor can sell the property after paying the back payments for you.|
Are Relocation Expenses Provided?
|Yes, it can be as much as $3,000.||Yes, it can be as much as $3,000.||No.||Yes, possibly as much as $5,000.|
Is Time to Move Out Offered?
|Yes, but the buyer decides when you need to be out.||Yes. This option is lenient, and you might be able to stay on a lease up to a year.||No. You’ll be evicted if you do not voluntarily move out.||Yes, but you must move out before the sale to the investor can close.|
What is a Foreclosure?
A foreclosure is the legal process where your mortgage company obtains ownership of your home (i.e., repossess the property). A foreclosure occurs when the homeowner has failed to make payments and has defaulted or violated the terms of their mortgage loan.
A foreclosure can usually be avoided—even if you already received a foreclosure notice. See the chart (in “Foreclosure Comparison”) to compare some other options: Short Sale and Mortgage Release (Deed-in-Lieu of Foreclosure). No matter the option, you must take action as soon as you can.
What are the consequences of a Foreclosure?
- Eviction from your home—you’ll lose your home and any equity that you may have established
- Stress and uncertainty of not knowing exactly when you will have to leave your home
- Damage to your credit—impacting your ability to get new housing, credit, and maybe even potential employment, for many years
- May owe a deficiency balance after the foreclosure sale
- Lose any relocation assistance or leasing opportunities that may be available with other options
- Forfeit ability to get a Fannie Mae mortgage to purchase another home for at least 7 years (Fannie Mae guidelines)
What is the process for a Foreclosure?
There are two main types of foreclosure:
- Judicial – supervised by a court with formal legal proceedings (civil law suit)
- Non-judicial – non-court supervised
In both types of foreclosure, the homeowner receives the legal notice of foreclosure, the legal notice is published in the local paper (in most cases), and the home is sold at public auction. (For judicial foreclosures, you’ll be served with legal notice of the pending action, and the court will approve or set the foreclosure date and sale.)
The process and timing of a foreclosure can vary by state laws, and many other factors. However, your mortgage company can begin preparing the default notice/foreclosure proceedings on your home as early as 60 days after you have missed your first payment. That’s why you should take action early to begin working with your mortgage company to resolve your payment problems immediately.
How Do You Avoid Foreclosure?
The most important thing—take action now. You have nothing to lose (and everything to gain) by working with your mortgage company to avoid foreclosure.
If foreclosure is imminent, other options may no longer be available. However, you may still be able to leave your home without having to go through foreclosure. This means you won’t have a foreclosure on your credit history and you may qualify for relocation assistance to ease your transition to new housing.
|Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:|
|Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment, why this is a long-term problem and confirm that you are ready to leave your home to avoid foreclosure. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.|
|Contact your mortgage company—Tell them you are interested in a Mortgage Release and you want to see if you qualify.|
Use these helpful forms to help you prepare »
Your mortgage company wants to help you avoid foreclosure and, in most cases, will be willing to work with you. The biggest mistake you can make is to wait any longer to take action. Contact your mortgage company today to determine if you can avoid foreclosure. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor.
Let’s Talk about Your Options Now.
We’re here to help you.
407 986 9151
FL Realty Group
A license real estate broker
License BK 3085047