I am going to try to keep this post simple and basic.  Each state and lender may have different laws and rules. 

 I am consistently about people losing their homes because they are not seeking advice from a Realtor®. 

 1^st, call the lender for arrangements.  Ask for a temporary arrangement, if permanent will not be granted.

Options:  Deed in Lieu, the lender takes the deed with out foreclosure process; this could save the homeowners credit.

 Foreclosure:  the process of a bank reposing a home. 

            Stages:  1.  homeowner is late on payments

2.      3-4 months later, bank sends account to attorney to start the foreclosure

3.      ask the bank “Deed for Cash” homeowner gives deed, bank may give homeowner moving money

4.      homeowner recieives notice of “Sherriff Sale”

5.      at the “Sherriff Sale” the loan is purchased at auction, usually purchased back by the bank, then the bank can sell the property later to recoup loss

6.      after “Sheriff Sale” is home is occupied, homeowner can redeem home for 6 months (home owner can repurchase home from bank)

7.      ask the bank “Keyes for Cash” bank may pay homeowner to vacate premises

8.      if home is not occupied, MI law says bank can take over 15 days after “Sheriff Sale”

Can a homeowner sell during foreclosure?  Yes, until the last day of the redemption period.

 Short Sale during Foreclosure:  A short sale is when the bank will agree to take less then the homeowner owes the bank.  

                        Points to consider:  Will the lender consider the debt paid in full?

                                                Is the lender going to attempt to recollect the difference?

                        Will you get a 1099 from the lender? 

Will you have to pay taxes on the amount forgiven?

Purchaser must prove financial situation has changed.

Step 1.  Getting Prepared

• Contact your mortgage lender for PREAPPROVAL. 
• Know what you can afford.
• Explain to Realtor your needs.

Step 2.  Previewing Homes

•  Take pad of paper, ink pen and camera.
•  Note all the likes and dislikes.
•  Ask yourself, how does this home make me feel?  Do you feel enclosed, comfortable or overwhelmed with too much space?
• Note how much updating you may need to do.  What are the approximate costs?

Number 1 question, do people really purchase the first home they look at?

      Yes, many people purchase the first home they look at.

Step 3.  We Found a Home!
Once you have selected a home, have agent do a Market Analysis of the area to help you determine offer price. (Compare apples to apples)

Items that will affect your offer:
      1.  Property Condition
      2.  Property Improvements
      3.  Market Conditions
      4.  Seller Motivation

Step 4.  Make Your Offer

Your agent will assist you with the offer.
      Discuss home inspections, home warranties and well test....

Step 5.  What to Expect from Owner Seller

• Agent will present offer to seller's agent or seller.
• You will know the result, accepted, counter-offer or rejection immediately.
• Fast negotiations.
• Inspections
• Get Home Owners Insurance
• Close

            What to Expect from Bank Owned Seller

• Agent will submit offer to seller's agent or bank.
• Bank can take offer and others.  Don't plan on a response for 2-4 weeks.  If you get one sooner you are blessed.  Yes, they can still receive offers while you are waiting.
• Bank will provide their own "Addendum" specifying the terms.
• Inspections
• Get Home Owners Insurance
• Close
• Bank will charge you a daily fee if transaction is not closed on date specified in the purchase agreement.
•         Timely, purchasers are usually upset about the length of time it takes the Bank to respond.

            What to Expect from HUD

• Sign Contract
• Earnest Money is not negotiable. 
• $500 for homes below $50,000
• $1000 for homes $50,000 and above
• Must be in form of a cashiers check made out to Real Estate Brokerage
• Agent submits offer on-line
• M-F expect a 24 hour response
• Have all inspections done with in 15 days of accepted offer.
• Get Home Owners Insurance
• You must close with in 45 days.
• Easy, fast and most of all, very affordable.

The Last Step:  Closing, the Home Becomes Yours.

• Your lender or real estate agent will contact you with the final $'s you must bring to close.
• Bring your Driver's License
• Your lender or title company may request a last minute item, be prepared.
• The closing documents may be signed on one day, reviewed then finished the next.
• In most cases you will only be required to be at the title company one day.