Foreclosure Prevention Methods – Can the owner do a short sale on their own property?
If some lenders are willing to take less from an outside investor, would they consider doing this directly from the owner? Possibly taking less for the home and refinancing it for the owner?
We have not started foreclosure. In the last 6 months we have negotiated missing one payment and repaying another over 6 months. The mortgage has not been 1×30 as of recently, but was 1×30 about 6 months ago.
Forgot to mention, yes we would like to keep the house and there is about 10-15% equity. Selling would not work, since hard prepay is very high, plus agent fees and other fess.
Tagged with: Foreclosure • methods • Owner • Prevention • property • sale • Short • their
Filed under: Foreclosure
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No, they want what you promised to pay. They aren’t in the charitable business. If you default, it’s foreclosure. You could consider deed in lieu of foreclosure, but some companies aren’t accepting that. They want their money. Keep in mind as well, they could file a personal judgment lien or file a 1099 with the IRS for the balance if the property sells for less than the mortgage balance. If you need help call this number 888-995-HELP. It is a HUD approved counseling service that may be able to help you.
I can hear the laughter now if you suggested such a thing to your Mortgage Lender!
Nice try.
There are other methods as well as short sale if you have 30% equity in the home. Do you have at least 30% equity?
Do you want to keep your home?
A lender will usually agree to a short sale by the owner but not for the reason you want to refinance and that won’t work. You haven’t proven you can afford the home. If you wanted to refinance this would have been better to have done this before you got behind in payments.
Have you received a notice of foreclosure yet?
Sounds to me that what you need is information and guidance on what all the alternatives are. To that end here are links you should visit.
HUD Initiations of foreclosures, an explanation
http://www.hudclips.org/sub_nonhud/cgi/nph-brs.cgi?d=HBKS&s1=Foreclosure+procedures&op1=AND&l=100&SECT1=TXT_HITS&SECT5=HBKS&u=./hudclips.cgi&p=1&r=83&f=G
Fixing your debt problems information from the US Government
http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.htm
National Home Recovery Program for foreclosures http://www.nhrp.com/
Fannie Mae Loss Mitigation policies on Foreclosures
https://www.efanniemae.com/is/hcounselors/lossmitigation.jsp
Site #2
http://www.fanniemae.com/housingcommdev/resourceshomeed/lossmitigation.jhtml?p=Affordable%20Housing%20&%20Community%20Development
FHA Definition of terms used in Loss Mitigation on Foreclosures
http://www.fha.gov/sf/svc/faqmain.cfm
Government article and information on Foreclosures
http://www.occ.treas.gov/cdd/spring06b/cd/gsesusetech.htm
Free Foreclosure assistance – Homeownership Preservation Foundation
http://www.995hope.org/
Best of luck on your research
Hi,
I help people in your shoes on a daily basis. Yes, you can negotiate a short sale on your own with your lender. However, that means that you have found a buyer who is willing to purchase the home.
I highly suggest you locate a licensed real estate agent (Ideally a Realtor) and do not negotiate with someone who calls themselves an “investor”. A real estate agent who knows how to conduct short sales can be held liable to lose their license if they do anything that violates the fiduciary relationship between you and them. An investor generally is a person who will try to low ball your lender and take advantage of your situation.
That said, if you are aware and knowledgeable about home prices, the real estate market, real estate contracts and what you are doing, I don’t see any reason why you couldn’t do this on your own.
Somehow I think you have been approached by an investor who is willing to rent your house to you and give you an option to purchase it back to you. Be careful in what you do and I wish you the best of luck.
Regards