HUD Pre-Foreclosure Sale Program / Procedure
Homeowners who are in/have " defaulted " on their mortgages often attempt to sell their properties in order to avoid foreclosure and to protect their credit standing. However, because of declining property values areas, some homeowners cannot receive enough money from the sale to pay their mortgage balances.
Therefore, the Department of Housing and Urban Development (HUD) has implemented the Pre-Foreclosure Sale Procedure. With some restrictions, homeowners who are permitted to engage in the PFS attempt to sell their homes for a fair market sale price, which can be less than the amount they owe to the lender. HUD then reimburses the lender for the difference between the sale proceeds and the outstanding mortgage indebtedness. This program applies to most applicants with loans insured by FHA and a few conventional loan lenders. Time is of the essence. Most applicants qualify.
Homeowners who sell their properties under this procedure will not only benefit by avoiding the effect of a foreclosure on their credit rating, but there are also provisions for cash consideration to those program participants who go to " closing " on the sale of their properties within a predetermined period of time.
You will be required to work with a real estate professional as Lazaro Gonzalez to improve your chances of accomplishing the sale. If, after a " good faith " effort, an acceptable purchase offer is not obtained within the allotted time, the lender will usually accept a deed-in-lieu of foreclosure. A deed-in-lieu is less desirable than a pre-foreclosure sale on a homeowner's credit record, but is looked upon more favorably than a foreclosure.
There are several ways to STOP a foreclosure and save your credit. Even if you are 3 times late on your mortgage, this is the time to call.
For more details and how to apply, please call or e-mail Lazaro Gonzalez
