HERE ARE SOME TIPS…
• Do NOT ignore letters from your lender and hope that your problem goes away. Keep in regular contact with your lender. The WORST thing you can do is ignore their correspondence.
• Good News! There are alternatives to foreclosures and bankruptcy. Ask your lender about a short sale. Ask how the remainder of what is owed, “the deficiency”, will appear on future credit reports. A short sale is when the lender agrees to accept less than what is owed on the property.
• When calling your lender, ask for the “Loss Mitigation” department, document who you spoke with, the phone number and date and time of your call.
• Ask your lender about the Mortgage Forgiveness Debt Relief Act of 2007; any debts forgiven may be counted as income for tax purposes. You may need to consult with a CPA to discuss tax liability issues.
• Discuss the possibility of a short sale or other “work out” with your lender. Be nice! They’re more willing to help you if you’re kind – this is not a good situation for them either.
• Contact your lender as soon as you begin having problems. Remember, lenders WANT you to KEEP your house; they’ll work with you.
Visit some of the informational web sites for homeowners and renters below!
| Free counseling service with HUD approved counselors to discuss options & plans of action to avoid foreclosure. http://www.995hope.org/ |
| By Design Financial Solutions, Free webinars: http://www.bydesignsolutions.org/ |
| Housing and Urban Development – Foreclosure: http://www.hud.gov/foreclosure |
| How to do Short Sales: http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm |
| Short Sales and Foreclosures: http://homebuying.about.com/od/4closureshortsales/qt/0507Distressed.htm |
| Internal Revenue Service – Questions & Answers on Home Foreclosure and Debt Cancellation: http://www.irs.gov/newsroom/article/0,,id=174034,00.html |
| Internal Revenue Service – Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many: http://www.irs.gov/newsroom/article/0,,id=174022,00.html |
| Ask A Lawyer – on line: http://real-estate-law.justanswer.com/ |
| Military OneSource – enter “foreclosure” in the search block http://www.militaryonesource.com/ |
