The most difficult part of any foreclosure workout is compiling the required information and doing it very quickly.

Once you compile the information and provide it to Foreclosure 911, we can quickly determine if you are a candidate for a Shortsale (a/k/a Pre-foreclosure Sale) or if you should consider Foreclosure Alternatives.

Obstacles to overcome:

• If there are Federal Tax Liens on record – need Waiver from IRS – difficult but doable if there is no equity
• Juniors liens must also be negotiated (they are usually willing to do so as they would be wiped out completely with a foreclosure sale of a senior interest; junior lien holders have been known to take less than 50% of amount owed)

Obstacles outside of Buyer/Seller control:

• If VA, FHA, FannieMae, etc., need special additional approvals (but may also have other option)
• If Private Mortgage Insurance, need PMI company approval
• If investor, need investor approval
• If servicer, need servicer approval
• If in Bankruptcy, need to conduct this process through bankruptcy court or after property has been released from Bankruptcy Court
• Banking regulations for percentage calculating short sale percentages
• Number of short sales a lender has recently approved
• Person you are dealing with in the loss mitigation department

BUT, with a Facilitator Team like Foreclosure 911, we will work to identify and overcome as many obstacles as possible to reach your goal.

DOs and DON’Ts:

DO NOT:

• Purposefully leave property vacant, ask tenant to move or stop collecting rent
• Stop paying credit cards
• Transfer money between accounts or out of accounts except for usual bill payments
• Apply for loans or credit cards
• Open new bank or investment accounts
• Fail to fix health code violations
• Close accounts or cancel credit cards
• Stop paying any bills (mortgage, utilities, etc)
• Do any action that would hurt your credit score

DO:

• Seek legal counsel if you are unsure of your legal position
• Seek a bankruptcy professional if that is your best alternative
• Seek a tax advisor if you have any tax concerns
• Seek counsel before appearing in court for health code or eviction issues
• Consider whether a short sale is appropriate for you; if not, ForeclosureMass911 can refer you to a credit consultant, mortgage consultant, bankruptcy attorney or real estate broker to provide other assistance.

SCAMS:

Samples:

• Investors who promise to help you out of foreclosure but just take over any equity in your property.
• Websites that require your credit card information prior to contacting you.
• Lenders who indicate they will get you out of foreclosure but just put you into a more difficult mortgage payment situation with a large profit to the lender.
• Promise of a “lower payments” without full disclosure of the real terms of a loan, such as balloon payments, INCREASING loan amount with each payment, adjustable rates for which you can only afford the first few payments.
• Pay $$$ for filing Bankruptcy to stop the foreclosure (the new Bankruptcy laws are very strict and you need an experienced and reputable attorney to determine if you are a bankruptcy candidate).
• Inability to meet the person claiming to help you.