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For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.Here are the documents most essential for fighting foreclosure:
Mortgage, deed of trust, or contract for deed: If you financed the purchase of your home through a bank, you have a mortgage or deed of trust. If the seller provided financing, you may have a contract for deed. All three documents stipulate the agreement between you and the lender, name the home as collateral for the loan, explain what the lender can do in the event of a default, and perhaps even explain what the bank must do before foreclosing.
Note: The note or promissory note or contract is your promise to pay the loan in full. The mortgage or deed of trust backs up your promise by offering the home has collateral. The note explains what you agreed to when you took out the loan and what the bank can do if a deficiency arises; that is, if the proceeds from the sale of your home are not enough to cover what you owe on it.
Modifications to the mortgage or note: If your bank agreed to modify the mortgage or note in the past, you should have the documents showing those modifications, including any forbearance agreements.
Deed: Your deed shows you as the legal owner of the property, but it may also contain warranties from the seller. You need to know the type of deed you have and what that deed warrants.
Correspondence: Save a copy of anything the bank and/or its attorney sends you and anything you send the bank.
Notice of default: Keep a copy of the notice of default (NOD). If your jurisdiction requires the lender to publish the NOD once a week for so many weeks in the local paper or legal news, then cut it out each week along with the cover section of the newspaper to show the date of publication. If you’re going to challenge that the notice wasn’t properly published, you need to have this information to prove your case. Read the notice to make sure the information is accurate and complies with what the bank agreed to in the mortgage or note.
Sheriff’s or trustee’s deed: If your house has already been sold, obtain a copy of the sheriff’s or trustee’s deed, which should also include information about your redemption period (if any) and where you can go to redeem your property. Check the deed for any errors; you may be able to challenge the sale if the deed contains errors.
Canceled checks: If you sent payments to the bank or the bank cashed your checks and failed to credit your account, you should have a record of the checks you sent. These can be invaluable in proving that you paid on time when the bank claims you didn’t.
Bank statements: Bank statements can come in handy to show checks that have been cashed. If you decide to refinance your way out of foreclosure or take out a loan to reinstate the mortgage, lenders are going to want to see your most recent bank statements, as well.
Listing agreement: If you decide to place your home on the market, obtain a listing agreement from your real estate agent proving that you’re trying to sell your home. You should also keep copies of any offers you receive. In addition, ask your agent to supply you with copies of all marketing fliers and ads and a history of how many times she showed your home to prospective buyers. If you’re having trouble selling the home for enough money to pay off the loan, all this information can help you convince the bank to accept a short sale.
Current appraisal: Although you may not want to pay for a new appraisal, if you already have a recent appraisal of your home’s market value, keep it handy. This information can be valuable in convincing the lender to accept a short sale and can assist you in understanding the current market conditions so you can decide whether selling your home is a viable option.
Phone logs: Keep a written journal of all your phone conversations, and include a copy of these in you files. These records can be useful down the line if and when you need to recall a conversation.
Other stuff: Keep anything else you think may be relevant. Having more than you need is better than needing something later and not having it. The best way to keep all this information accessible and organized is to use a three-ring binder. If you can’t find a copy of your deed or mortgage or anything else that’s part of the public record, schedule a trip down to your local county building; you can usually obtain copies of most documents by paying a small per-page copy fee.
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For Dummies is a registered trademark of Wiley Publishing, Inc. in the United States and other countries. Used here by license.