Understanding Foreclosures

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What is a Foreclosure?

A legal proceeding whereby a mortgage lender sells or repossesses the home of a borrower who stopped making mortgage payments.Notice of default - 90 daysTaking the propertyRight of redemption

Homeowner’s do not get foreclosed on, their properties do.

Stages of Foreclosure1. Miss your payments2. Pre foreclosure3. Auction4. Post foreclosure

How to Avoid Foreclosure

Should you even try? Come to terms with the reality of foreclosure Get the money Modification Refinance Hire us Short sell Reverse mortgage (62+)

The LenderThey don’t want your home, they want

your money, there interest is your interest payment

They don’t want to rent your home, they want your interest payments

Beat Them to the Punch

Sell your home before foreclosureDue on sale clauseUse proceeds to pay off the mortgageIf the mortgage is greater than the

value of the home, short sale.

Stop the Foreclosure Process

Foreclosure Workout - ModificationShort SaleBankruptcyDeed in LieuSell your home

Seller financing, assumable note

Implications of a Foreclosure

Missed Payments Late payments drops FICO 50 to 100 points

Short Sale will drop your score 100 points. 18 months to rebuild Up to 3 years to get a new house NO default judgment against you You will have to pay tax on debt forgiveness

Foreclosure and Deed in Lieu Credit score will go down by 250 to 280 points. 3 years to rebuild Liable for deficiency

Buying a Foreclosure Property

Not always cheapElbow grease to fix it up

It will never be ready to go

ihousesandiego.comCall us for a list of foreclosure/REO

homes858.869.9404

Or if you are facing foreclosure, let us tell you your options