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Mississippi Real Estate
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Hernando, Olive Branch, Southaven, Nesbit & Walls in Desoto County
Mississippi
Also Tate, Tunica and Marshall Counties |
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Avoid Foreclosure
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Q: |
Can a home
seller sell a home for less than its mortgage?
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A: |
This situation
is known as a "short sale." Sometimes home owners can
negotiate with lenders and have them split the
difference between the sale price and loan amount, which
still must be paid.
A short sale may be complicated if the loan has been
sold to the secondary market because then the lender
will have to get permission from Fannie Mae or Freddie
Mac, the two major secondary-market players.
If the loan was a low-down-payment mortgage with
private mortgage insurance, then the lender also must
involve the mortgage insurance company that insured the
low-down loan.
Resources:
* "How to Fight Foreclosure," Jeff Jensen, Jensen
Publications, 200 Main Street, Suite 104-201, Huntington
Beach, CA 92648; (714) 843-0321. |
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Q: |
How does a
home go into foreclosure? |
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A: |
Foreclosure
proceedings usually begin after a borrower has skipped
three mortgage payments. The lender will record a notice
of default against the property. Unless the debt is
satisfied, the lender will foreclose on the mortgage and
proceed to set up a trustee sale. |
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Q: |
What happens
at a trustee sale? |
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A: |
Trustee sales
are advertised in advance and require an all-cash bid.
The sale is usually conducted by a sheriff, a constable
or lawyer acting as trustee. This kind of sale, which
usually attracts savvy investors, is not for the novice.
In a trustee sale, the lender who holds the first
loan on the property starts the bidding at the amount of
the loan being foreclosed. Successful bidders receive a
trustee's deed. |
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Q: |
When does
foreclosure begin? |
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A: |
Lenders will
initiate foreclosure proceedings when homeowners become
delinquent in their mortgage obligations, usually after
three payments are missed. The lender will then notify
the buyer in writing that he or she is in default. The
lender can request a trustee's sale or a judicial
foreclosure, in which the property is sold at public
auction.
A borrower can cure the default by paying the overdue
amount and the pending payment after the notice of
default is recorded, usually no later than a few days
before the property's sale.
Some sales allow the successful bidder to take
possession immediately. If the former owner refuses to
vacate the premises, the court can issue an unlawful
detainer that allows the sheriff to come out and evict
them.
Borrowers should do everything they can to avoid
foreclosure, which is one of the most damaging events
that can occur in an individual's credit history.
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Q: |
How bad is a
previous foreclosure on credit? |
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A: |
A property
foreclosure is one of the most damaging events in a
borrower's credit history. In terms of the effect on
credit history, a deed in lieu of foreclosure or a short
sale is not as adverse an event as is a forced
foreclosure. |
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Q: |
Can I protect
my home from creditors? |
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A: |
Your state may
provide you with special protection from creditors
through the filing of a homestead exemption, which
exempts some or all of the value of the owner's equity
in the homestead from claims of unsecured creditors.
Deciding whether or not to file a homestead exemption
often depends on an individual's situation. Contact your
county recorder's office for details. |
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Cara O'Bryant
Realtor Associate
Licensed
in Mississippi & Tennessee
901-212-0047
 Bob Leigh & Associates Realtors, LLC
6900 Cobblestone Blvd
Southaven, MS 38672
662-890-9696
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