Once you receive a Notice of Default the clock starts on how long you have left before you have to move out of the house. The first thing you want to do is contact your bank and see if they can restructure your loan through a modification. Don't get excited about any principle balance at this point but you could get an affordable payment if submitted properly. One thing many home owners don't realize while they submit the financials is; the bank wants to see a surplus in your income before the modification. In other words, show your lender that your have a small surplus in cash flow after paying your current Mortgage, Utilities, Consumer debt, groceries, etc... The rates are the lowest they've been in several years so the bank could be motivated to work something out with you. The frustrating part about this tactic is; It takes several months usually to get a modification done and many times the modification simply does not get done.
Short Sale- Contact a local Real Estate Professional in your area and determine what the market value of your property is today. Determine how upside down your equity position is on the house determine then what the bank would take on a discounted price. One thing you need to be aware of is whether your current loan is a Purchase money loan or a cash-out refinance. Please consult with a Real Estate Attorney or CPA on your potential tax obligations in this matter
Deed in Lieu of Foreclosure- This is simply walkng away from your house without any issues for the lender to pursue a trustee sale, or get involved with an ugly eviction process. many times a Lender will offer cash for keys.
You can attempt to delay the sale date through a trustee sale verification process. Contact me if you want the name of a reputable company that can perform this service.
The sad reality is that at the end of the day the bank will take your home if you don't do something to prevent it. Many homeowners now are starting to fight back through litigation. As it turns out, the banks have been bypassing some legalities in the haste to foreclose on about 2.3 millions homes so far. If your Attorney can have a securitization audit done by Lighthouse Consulting Group which includes a Mortgage Scene investigation that uncovers several factors in the Foreclosure process. For example: Robo Signing, Back-Dated Assignments, Fraudulent Declarations and Affidavits. Securitization is the fastest growing tool in this area of Real Estate Mortgage Litigation.
If you have any questions please feel free to contact me directly. Brian Head at 714 486-0652.
Or, 1 800 529-2959 Ext. 1002. firstname.lastname@example.org