One strategy is currently filing for bankruptcy, but bankruptcy is not the only means. A property owner can stop foreclosure by following a brief sale, a process which involves selling a home below market value and below the main balance of the loan. Your mortgage lender may agree to a brief sale and apply the proceeds from the purchase as complete satisfaction of your loan.
, Get in touch with your mortgage lender. Advise that you desire to follow a brief sale of the estate, with the approval of the lender. You have to obtain the approval of the lender to take the brief sale proceeds as complete satisfaction of the loan. Absent such an agreement the lender can — and probably will — seek a deficiency judgment against you in court to get the gap between the loan balance and the amount paid off throughout the brief sale.
Get a written agreement agreeing to the sale and waiving its right to seek reimbursement, including a judgment, for any deficiency.
Include a clause in the agreement that determines the cost acceptable to sell the estate.
Sign the agreement. Both you and a representative of the mortgage lender must sign the contract, based on”California Real Estate Law” by William H. Pivar.
Place the estate available on the market available. Think about keeping the services of a real estate professional experienced in short sales.
Surrender the proceeds from the brief sale to the mortgage lender.
Get a written release from the mortgage lender confirming complete satisfaction of your loan obligation.