Things You'll Need:
- Cost of real estate appraisal
- Closing costs
- Exact mortgage payoff amount
- Phone number and address of the lender
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Step 1
Contact a Los Angeles appraiser to take a good look at your home. This is the time to make the home sparkle and stand out like a gem. Use a local company with an office near you; this ensures that you get a professional who is up to date with real estate trends and comparables in your neighborhood. Your goal is to come in with an appraisal figure above the amount of the outstanding mortgage loan.
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Step 2
Gather your mortgage paperwork. You need to find your last statement that shows the payoff balance.
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Step 3
Take the pay-off balance and compare it to the appraisal amount. If your appraisal came in above your payoff balance, you are a good candidate for handing in your deed in lieu of foreclosure.
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Step 4
Think carefully if you really want to lose out on any equity you have built up in your home. The deed in lieu of foreclosure option is usually a good idea if you have lost your job, are behind on your monthly mortgage payments and realistically have no way of curing the default.
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Step 5
Write to the bank that holds your mortgage and offer your deed if the bank agrees to stop foreclosure proceedings against you.
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Step 1
Try selling your home on the open real estate market. Since the Los Angeles real estate market has taken quite a downturn, you will be hard-pressed to get the full appraised value, but it is a good idea to make the effort.
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Step 2
Contact your mortgage holder and request a short sale. The resulting paperwork will offer the bank detailed insight into your financial situation, ability to make up any arrears and also your overall credit history. The bank will only consider your application for a short-sale agreement if you can demonstrate financial hardship that makes it unlikely that you will avoid foreclosure in the future.
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Step 3
Negotiate the short-sale amount with the mortgage holder. The bank will agree to accept less than the full payoff amount on the outstanding mortgage in return for you making the effort to sell the home on the market. This makes you responsible for the real estate agent fees and any associated taxes, costs, and other charges required at closing.
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Step 4
Act as the go-between with interested buyers and the bank. If you are working with a real estate agent, she will act in your stead. You'll notice that the Los Angeles real estate market is under close scrutiny by investors looking to buy up sizeable chunks of real estate. If you receive numerous offers, opt for a large investment firm rather than a lone investor. Large companies know the process and will wait out the slow response time by the bank.
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Step 5
Attend the closing, pay the closing costs and receive your notice of payment in full by the bank.
