Financial misfortune can happen to anyone, and a major concern for any homeowner is facing foreclosure. Check out common questions and answers on avoiding foreclosure and saving your home.
When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note for this loan, and a lien will be placed on your property until the loan is paid in full. The loan is interest-free and will be due if you sell or leave your property, or when your mortgage matures
An additional benefit to this option is the assistance you'll receive with the seller-paid closing costs
Also, foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future.
If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.
Be especially alert to the following: