Deeding your house to someone else is one way to avoid foreclosure. However, there are some things you need to do before you make a decision to deed your house to someone else in order to stop foreclosure on your home. You will need to consult with an independent attorney, not the buyer’s attorney. Deeding your property will render you powerless. The new owner will always have control and as such they can do anything with the property, including renting it out and keeping the rent, or even attempting to sell it to make profit. This may in return have a negative financial impact on you because the new owner might not make your mortgage payments. As you well know, this can cause huge damage to your credit.
Mistake #2: Selling your home at a huge discount.
Take time to explore your options especially when your foreclosure sale is more than 45 days away. Take a day or two making phone calls just to try and find an appropriate solution for your situation. Do not allow a buyer to push just to get you sell them your property. In such a case, the deal will most likely be favorable to them and not to you. Equity in your home belongs to you.
Mistake #3: Authorizing a prospective buyer to deal directly with your lender.
The buyer will always ask your lender to accept a discounted payoff. The negotiations may be longer than expected and if they fail to agree, the buyer may decide not to buy your property. This could waste time for you. Before you realize, you may not have time to resolve the situation and avoid foreclosure. In addition, not knowing what goes on between the buyer and your lender may be detrimental to you. It may happen in such a way that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later. If you believe that this is the best option for you, please make sure that you consult with a real estate professional or an attorney before signing a contract. Hiring a real estate professional to represent you costs you nothing as the lender will pay the fees. We have helped homeowners like you and we can do it for you at absolutely no cost.
The worst thing for you to do is to sit back and do nothing about your situation.