Things Not To Do

Number One

Do Not deed your property to a third party without confirmation in writing from your lender that your loan has been paid off. If you believe this option is best for you, consult with an attorney first - not the buyer's attorney - before completing the transaction. When you deed your property to a third party, that party then controls the property. Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you and until it is paid off you will be primarily responsible for the mortgage obligation.

Number Two

Do Not make a panic driven decision to sell your home at a huge discount. Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. As a general rule, if someone is pushing you hard to get you to sell your property to them, it's probably because the deal they are proposing is very favorable for them. If you have equity in your home, it belongs to you. The best advice is always to CALL YOUR LENDER FIRST. If we can assist at all, even if it’s just to answer questions, please call. We receive a number of such calls every day and we can offer answers that may help more than you might immediately realize.

Number Three

Do Not authorize a prospective buyer or potential property investor to deal directly with your lender. The buyer of a “distressed” property has one goal, to negotiate a low price with your lender. The buyer will ask your lender to accept a discounted payoff. The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. If, however, you believe that your best option is to allow the buyer to work directly with your lender, consult with a real estate professional and/or an attorney before signing a contract. If you are considering a short sale, get representation from a real professional. Someone should be looking out for you. Most lenders today would prefer to take your property through foreclosure. That's why they will negotiate to get a deal done pre-foreclsure.

Number Four

Do Not become paralyzed by your personal situation. A surprising number of people just accept what they see as inevitable, and let foreclosure run its course without ever taking the time to consult with either the lender or a real estate professional who can provide timely, relevant advice. Don't let this happen to you - the damage to your credit can follow you for years. A short sale can salvage your credit scores or at the least minimize the negative impact. You do not want a foreclosure if at all possible, on your credit record. It will hamper your ability to get a consumer loan of any kind for a few years at least, while making it extremely difficult to get another mortgage for even longer.

What are my options?
Things not to do
Short Sale FAQ
About foreclosure
What about my credit?