How to Avoid Foreclosure With OneWest Bank

Foreclosure sometimes can be avoided.

Home loan borrowers of OneWest Bank who are experiencing difficulty repaying their mortgage and do not qualify for a loan modification have other options when faced with foreclosure. The bank's mortgage servicing division, IndyMac Mortgage Services, offers some alternatives to part ways and avoid the credit-damaging implications of forced foreclosure. A short sale is available for homeowners who already have a buyer lined up for their home, and a deed-in-lieu of foreclosure allows homeowners to legally transfer ownership of their home to the lender to avoid foreclosure.

Things You'll Need

• Mortgage with IndyMac Mortgage Services, a division of OneWest Bank
• Income documentation

Instructions

Instructions

1. Contact an IndyMac Mortgage Services loan counselor at 877-908-HELP as soon as you realize you're ineligible to remain in your home or as soon as possible after receiving a foreclosure notice. If you are facing foreclosure, they will provide you with information on how to apply for either a short sale or deed-in-lieu of foreclosure.

2. Consult with your broker, a certified public accountant or other attorney for advice on how either option will affect your credit score. A broker also may help you complete either transaction with OneWest Bank.

3. Decide if you wish to pursue a short sale or deed-in-lieu. Keep in mind: A short sale allows you to sell your home for a price lower than what you owe on your mortgage.

Short Sale

1. Download the short sale application from the IndyMac Mortgage Services portion of OneWest Bank's website.

2. Fill out the required forms, including your financial information, information about the buyer of your home, a complete property listing history, and a hardship affidavit, which will explain the financial difficulties you experienced making your mortgage payments.

3. Gather financial documentation to indicate proof of all income for each borrower on the mortgage (pay stubs, tax returns, etc.) as well as proof of the buyer's financing (a loan pre-approval letter may be accepted). Your financial documents will prove the financial hardships you've faced in paying your mortgage, and your buyer's documents will prove that he can afford the home.

4. Sign a sales contract with the buyer of your home.

5. Provide an estimated settlement statement, which will indicate that all of the closing costs for your short sale will be paid for, either by you or the buyer.

6. Fax your application and all of the documentation to 626-583-1370.

7. Check in with a customer service representative at least once a week from submission of your application to ensure that IndyMac Mortgage Services has received your completed forms.

Deed-in-Lieu of Foreclosure

1. Contact an IndyMac Mortgage Services loan counselor as soon as you decide to pursue a deed-in-lieu of foreclosure.

2. Take note of the steps they instruct you to take, as each deed-in-lieu procedure will vary per situation.

3. Ask the loan counselor if you are eligible for a "cash-for-keys" program, which may provide you with financial incentives in exchange for your deed-in-lieu.

4. Consult with a loan counselor with the U.S. Department of Housing and Urban Development to answer additional questions you have about your mortgage and avoiding foreclosure via a deed-in-lieu.

Tips & Warnings

• Read all application requirements and all notifications sent to you thoroughly, as failure to comply with specifications can result in denial of your request for either a short sale or deed-in-lieu of foreclosure.

• If your home is visited by an inspector to determine BPO (broker price opinion) for a short sale, tidy up the interior and exterior of your home to achieve the highest appraised value possible.

• "Income" includes all money received, including Social Security benefits and other types of non-work-related income.

• Completed short sale applications must be approved at least 15 days before the scheduled foreclosure date. If not, foreclosure procedures will be executed.

• A short sale will only be approved if IndyMac Mortgage Services can determine an acceptable market value for your home, known as BPO.

• Short sales can't be conducted between friends, family members or other familiar parties.

References

• IndyMac Mortgage Services: Homeowner Preservation
• HUD: Talk to a Housing Counselor

Resources

• OneWest Bank: Lending Services