Foreclosure Help- Recognizing Issues

“Working together to help neighbors recover”

Definitions

Foreclosure. The legal process by which an owner’s right to a property is terminated, usually due to default. The mortgage lender sells at auction the property that secures the loan on which a borrower has defaulted. Typically, ownership of the property is transferred to the financial institution. The institution will market and list for sale the property to recover the monies owed to them.

 

Deed-in-Lieu of Foreclosure.The borrower transfers the property to the servicer if the home cannot be sold at market value. This option requires that the property be listed for a specified period of time, generally 90 days. There may be tax consequences.

 

Short Sale. If the market value is less than total amount owed, a short sale allows the borrower to sell the home and
use the proceeds to pay the mortgage even though the proceeds will not be sufficient to pay off the outstanding balance. The investor, mortgage insurer and any additional lien holders, ie. second mortgage, home equity line of credit, must agree to this option.

 

 

NV Foreclosure Mediation Website. http://www.nevadajudiciary.us/index.php/foreclosuremediation
Department of Business and Industry Website. http://foreclosurehelp.nv.gov/
Nevada Foreclosure Mediation Program to Undergo Rule Changes. http://www.dsnews.com/articles/nevada-foreclosure-mediation-program-to-undergo-rule-changes-2010-03-10
Obtain Tax Advice. http://www.irs.gov/individuals/article/0,,id=179414,00.html