1. Understanding Foreclosures ihousesandiego.com 858.869.9404

2. What is a Foreclosure?  A legal proceeding whereby a mortgage lender sells or repossesses the home of a borrower who stopped making mortgage payments.  Notice of default - 90 days  Taking the property  Right of redemption  Homeowner’s do not get foreclosed on, their properties do.

3. Stages of Foreclosure  1. Miss your payments  2. Pre foreclosure  3. Auction  4. Post foreclosure

4. How to Avoid Foreclosure  Should you even try?  Come to terms with the reality of foreclosure  Get the money  Modification  Refinance  Hire us  Short sell  Reverse mortgage (62+)

5. The Lender  They don’t want your home, they want your money, there interest is your interest payment  They don’t want to rent your home, they want your interest payments

6. Beat Them to the Punch  Sell your home before foreclosure  Due on sale clause  Use proceeds to pay off the mortgage  If the mortgage is greater than the value of the home, short sale.

7. Stop the Foreclosure Process  Foreclosure Workout - Modification  Short Sale  Bankruptcy  Deed in Lieu  Sell your home  Seller financing, assumable note

8. Implications of a Foreclosure  Missed Payments  Late payments drops FICO 50 to 100 points  Short Sale will drop your score 100 points.  18 months to rebuild  Up to 3 years to get a new house  NO default judgment against you  You will have to pay tax on debt forgiveness  Foreclosure and Deed in Lieu  Credit score will go down by 250 to 280 points.  3 years to rebuild  Liable for deficiency

9. Buying a Foreclosure Property  Not always cheap  Elbow grease to fix it up  It will never be ready to go

10. ihousesandiego.com  Call us for a list of foreclosure/REO homes  858.869.9404  Or if you are facing foreclosure, let us tell you your options