Things You Shoud Do And Some You Should Avoid
1.- Sell the property if you have a buyer before the Trustee Sale, if you have aquity look for choices like Hard Money Loan.
2.- Deal with your mortgage lender (s), ask them for help, they may offer forbearance, payment plan or something else.
3.- When you file for Chapter 7, you will not be able to keep the house but delay the foreclosure sale for a moth or several months. The remaining debt will be wiped out, but first of all consult with an attorney for legal advice.
4.- When you file for Chapter 13 your keep your assets and under a court supervision, you repay your debts under a three to five year plan.
5.- Sell your home on Short Sale on your home, the lender (s) will authorize it if you qualify for it, no moneys come out of your pocket, the home is sold in as is condition, most lenders consider these option to avioid foreclosure cost.
6.- Deed in Lieu means that your give your home and keys back to the lender and walk away fom it. Then your home will be sold on a trustee sale and if no one buys it, will be repossessed by the lender.
2 Don'ts
1.- Signing over your home title to another company, some companies take over, get the equity, don't make payments and at the end let it go on foreclosure.
2.- High Interest Second Mortgage: When a property has equity there are companies that will give you a second mortgage up to a 60% of the equity available. The interest rate could go up to 15% and fees can be exorbitant. They are hopping that you will blow the money and default, which allows them to take the propert from you.