FORECLOSURES


Options from HUD

Q, WHAT HAPPENS WHEN I MISS MY MORTGAGE PAYMENTS?
Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe HUD an additional amount.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.
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Q. WHAT SHOULD I DO?
1. DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender's Loss Mitigation Department without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.

2. Stay in your home for now. You may not qualify for assistance if you abandon your property.

3. Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.
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WHAT ARE MY ALTERNATIVES?


You may be considered for the following:

1. Special Forbearance:Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

2. Mortgage Modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

3. Partial Claim: Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.

You may quality if:
1. your loan is at least 4 months delinquent but no more than 12 months delinquent;
2. you are able to begin making full mortgage payments.

When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.

The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.

Pre-forclosure sale: will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
1. the loan is at least 2 months delinquent;
2. you are able to sell your house within 3 to 5 months; and
3. a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Deed-in-lieu-of foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure.

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; and
3. you don't have another FHA mortgage in default.
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Q, HOW DO I KNOW IF I QUALIFY FOR ANY OF THESE ALTERNATIVES?
Your lender will determine if you qualify for any of the alternatives. A housing counseling agency can also help you determine which, if any, of these options may meet your needs and also assist you in interacting with your lender. Call (800) 569-4287 or TDD (800) 877-8339.
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Q, SHOULD I BE AWARE OF ANYTHING ELSE?
Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.

Be especially alert to the following:
Equity skimming: In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Phony counseling agencies: Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency at (800) 569-4287 or TDD (800) 877-8339. Do this before you pay anyone or sign anything.
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Q, ARE THE ANY PRECAUTIONS I CAN TAKE?
Here are several precautions that should help you avoid being "taken" by a scam artist:

1. Don't sign any papers you don't t fully understand.
2. Make sure you get all "promises" in writing.
3. Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
4. Check with a lawyer or your mortgage company before entering into any deal involving your home.
5. If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.
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Q, WHAT ARE THE MAIN POINTS I SHOULD REMEMBER?
1. Don't lose your home and damage your credit history.
2. Call or write your mortgage lender immediately and be honest about your financial situation.
3. Stay in your home to make sure you qualify for assistance.
4. Arrange an appointment with a HUD-approved housing counselor to explore your options at (800) 569-4287 or TDD (800) 877-8339.
5. Cooperate with the counselor or lender trying to help you.
6. Explore every alternative to keep your home.
7. Beware of scams.
8. Do not sign anything you don't understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.
Act now. Delaying can't help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

Visit www.hud.gov

U.S. Department of Housing and Urban Development

Office of Single Family Housing
451 Seventh Street, SW
Washington DC 20410-3000
May 2001
Revised February 2005
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"Everybody Wins!"


Our philosophy in dealing with troubled homeowners is to strive for a deal that will benefit both of us. We are a group of licensed Real Estate Professionals and belong to various professional organizations. Our mortgage professionals know how to deal with troubled credit issues and our goal is to help you to keep your home. Unlike other investors who can only profit by ripping you off we will get paid by the bank for a legal and legitimate transaction of refinancing your home. If that venue is closed for one reason or another only then we will consider buying your debt or your home. Some professionals specialize in water front properties, some commercial, or agricultural. We do all that and we work with people who want to keep their home. Again, as licensed professionals we are not in the business of fraudulent dealings it is one of the aspects of our business practice.

You have to understand that the distressed real estate owner is about to have his or hers home taken away, but it is not all foreclosure will stay on his credit record for the next ten years. This will make any credit she is able to get in the future very expensive.

A troubled homeowner has very limited financial resources and pressed for time, we might not be able to help every one but we might be able to ease the pain and point people in the right direction.

Call us for a free no obligation consultation.
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Florida Foreclosures Proceedings


Florida carries out foreclosures through court proceedings. The foreclosure process in Florida takes about five months.

Pre-foreclosure Period:
A foreclosure in Florida begins when a lender files court action and records a notice of a pending lawsuit (Lis Pendens) against the borrower. The lender notifies the borrower and any other affected parties in person or in some cases by mail or publication. If the borrower does not respond to the court action within a specified amount of time, the county clerk can find the borrower in default and the lender can ask the court to make a final ruling. If the court rules against the borrower, the ruling will include the total amount owed to the lender and the foreclosure sale date.

The lender is not required by state law to notify the borrower before initiating the foreclosure process, but individual mortgages or deeds of trust might call for this. The borrower can stop the foreclosure up until the date of the sale by paying the total amount owed to the lender.

Notice of Sale / Auction
The sale date is typically 20-35 days after the court ruling, but this may vary depending on the individual court. The clerk of court issues a notice of sale containing the location, date, and time of the sale. The notice is published once a week for two weeks, with the second notice appearing at least five days before the sale.

The clerk usually oversees the sale, which ordinarily occurs at the county courthouse at 11:00 a.m. on the sale date. The winning bidder must provide a 5 percent deposit and pay the remaining balance by the end of the day or a new sale is scheduled a minimum of 20 days later. After a successful sale, the clerk gives a certificate of sale to the winning bidder.

Within 10 days of the sale, the clerk transfers ownership to the winning bidder if no one disputes the sale. In most instances, a borrower has no right of redemption after the certificate of sale is issued.
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FREQUENTLY ASKED QUESTIONS:


Here is a list of frequently asked questions and answers. If you still have additional questions, please feel free to email us.

How does this process work?
It's simple. You fill out the home information form, which electronically submits your data to us. Or just pick up the phone and call us. Do something, staying inactive will guarantee the loss of your home.

In the case if you buy home: Do you pay fair market value? Do you use an appraisal?How do you determine the price you're willing to pay?
It all depends. Considerations include the condition of the property, time left, market conditions and inventory levels. Interest rate and general state of the US economy all have to do with the outcome.

I have a realtor - is that a problem?
Normally, if you have a good realtor who understands the market and knows how to price you property and sell it on the open market it is worth every penny of the commissions. You will get more money and far less problems as the end result.

Do you only buy houses? What about condos, townhouses?
We buy house, condominiums, townhouses, duplexes, triplexes, office building, beach property, land, farms, lots, apartment buildings and/or any structure that has a deeded lot with it.

How much to you charge?
If the only way is for us to buy your property there is no fee for our service. In fact, there are no commissions whatsoever and typically all closing costs are paid by us so you get a net amount at closing. You will know your net amount at the time you sign the sales agreement.

If I fill out the form, am I obligated to anything?
There is no obligation whatsoever. The only time you would be obligated to anything is if you enter into an agreement with us, just as with any normal real estate transaction.

What if I'm in foreclosure?
If you act FAST - we can stop it and preserve your credit. A foreclosure will impair your ability to buy a home in the future. There are other alternatives to selling your home when facing foreclosure. Your needs and the circumstances surrounding your situation will help us determine together what the best solution is for you.

What if my house is in really bad shape? That's OK. If we can determine up front that we can make a profit then we'll buy it and our agreement will be specifically marked "AS IS"

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