April 9, 2018

Behind On Your House Payments? Top Questions Homeowners Have About The Foreclosure Process By Heeran Workman

Behind On Your House Payments?  Top Questions Homeowners Have About The Foreclosure Process. By Heeran Workman Realtor In Omaha NE

Prior to getting my Nebraska real estate license, I was working in the industry as a real estate investor doing everything from wholesaling, retailing, landlording, structuring land contracts, rent to owning, and buying commerical property to lease out.  During this process, I would work with sellers who were behind on payments and would consult with them to show them their options for moving forward.  Below are the most common questions they asked. 

Disclaimer:  I am not an attorney and therefore am not giving legal advice.  Please consult with an attorney if you have legal questions.

Q.  If my property is worth less than what is owed to the bank, should I let the bank have it through the foreclosure process? 

A:  A deficiency judgment could be pursued by your bank and in that situation, you would lose your home and also owe your bank the additional deficient amount.  The actual foreclosure and the deficiency judgment could also drastically affect the ability to qualify for future credit.  In my professional opinion, it's always best to avoid foreclosure if possible.   
Q: What do I do about the letters I'm receiving from my lender about my missed payments?
A: Lenders typically have their own process when dealing with properties with missed payments.  You may receive one or more letters asking you to either contact them, reinstate the loan (pay it current) or both.  Please don't ignore these letters.  It's best to be proactive as possible to find out all of the options that are availabile by your mortgage company.  The letter should have contact information to the loss and mitigation department.  They may ask you to fill out a personal financial statement as well as a letter explaining why you are in hardship and unable to pay the mortgage payments.
Q: I'm getting a bunch of letters from real estate investors and realtors saying they want to buy my home or sell my home?  Are they scammers?  
With every industry, I'm sure there are some scammers but some of these professionals may have real estate options to help you stop the foreclosure process.  If you are interested in selling your home, it's important to know what part of the foreclosure process the bank is at.  If they are ready to sell the property to the highest bidder at the foreclosure auction, you don't have much time and working with an investor who can buy cash with no contingency and closing in a few days might be your best option.  Of course this also depends on how much equity you have in your home as investors only buy homes they can later profit from.  It's best to meet with a reputable professionals who you trust to go over all of the options with you.  There are also counseling services.  
 The U.S. Department of Housing and Urban Development (HUD) web site has a list of agencies.  For Nebraska Click Here.   
Q: What are some of the options if I'm behind on payments?A: Deed in lieu of foreclosure, forbearance, loan modification, sales, and shortsales are the most common.   
Q: How quickly can they kick me out of my home?A: This is actually one of the biggest fears that I have seen in working with people who were behind on their mortgage payments.  They are petrified of someone coming to their home unannounced to kick them out of their property.  It is best to contact the mortgage company to find out what step of the foreclosure process they are at.  If they are very close to holding the foreclosure auction, you may be able to call the bank's foreclosing attorney or check the legal newspaper to find out the auction date and then plan your move.  In Nebraska, even if the foreclosure has happended, whoever holds title to the property after the foreclosure will then need to go through a general eviction process so you should get notification before anyone shows up.

By: Heeran Workman, MBA, Realtor - REMAX PLATINUM Omaha NE Real Estate
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