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.