Good 2 Go Home Investors, Inc. follows the US Dept of HUD Pre-foreclosure Sale procedure.

HUD -- "Certain criteria must be met to be permitted to pursue a Pre-foreclosure Sale (PFS):"

(1) You must be an owner-occupant, occupied, no “walk-aways” or investment properties.

Exceptions: when it is verifiable that the owner’s need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as a rental investment, or used as a rental for more than 12 months.

(Note: Investment property may qualify using other procedures. Click Short Sale Assistance under Resources & Links to receive free confidential help and find out about your options.)

(2) Your mortgage must be in default as the result of a documentable involuntary loss of income or unavoidable increase in expenses. Have mortgage statement and list of bills when you call.

(3) You must contact a HUD-approved Housing Counseling Agency before making a commitment to a particular method of dealing with your mortgage or financial problems. Call 1-888-995-HOPE.

Every participant in the Pre-foreclosure Sale (PFS) procedure must sign a certification that he or she has received homeownership counseling before a proposed pre-foreclosure sale transaction can be approved. By signing this form, you certify that you have received information regarding options and alternatives that you may be entitled to, or which may be available to you -- other than the sale of your property to a third party -- to avoid foreclosure. Write down the date, counselor's name, phone number and email address, even if the counselor says they cannot help you. Your mortgage lender will want this information. It provides 3rd party verification of your financial condition, and confirms your request for government help.

It is important that you, the homeowner, make an informed decision about whether to pursue a pre-foreclosure sale. Call 1-888-995-HOPE for free assistance in English or Espanol.

Homeowners benefit by avoiding the effect of a foreclosure on their credit rating.

Owners are required to list house with a licensed real estate agent within 7 days of acceptance.

If, after a “good faith” effort, an acceptable purchase offer is not obtained within the allotted time (ends 30-60 days prior to auction), the lender will usually accept a deed-in-lieu of foreclosure.

A deed-in-lieu is less desirable than a pre-foreclosure sale on a homeowner’s credit record, but is looked upon more favorably than a foreclosure auction. It is a "last resort" option used only if the pre-foreclosure sale fails. Owners are advised to seek professional legal advice on deed preparation and the possible consequences of voluntary foreclosure by deed-in-lieu.

Conditions of Participation: If you are approved to participate in the Pre-foreclosure Sale procedure, you will be required to: 1) allow your lender to arrange for a title search and an appraisal of your home. There will be no cost to you for these reports except if you reinstate or pay off your loan in full, in which case the cost of the appraisal and/or title search may be included as part of the pay off amount; 2) promptly list your property with a licensed Realtor who is unrelated to you; 3) assist in every possible way in the marketing of your property; 4) pay for all required repairs, maintenance, utilities, and other services during the pre-foreclosure sale period; and 5) based on your income, make monthly payments to offset your mortgage obligation in an amount agreed upon between you and your lender. Call 1-888-995-HOPE for free assistance in English or Espanol. Or visit http://www.995hope.org and apply for help online.

You are also agreeing that if your participation is approved, and you sell your home, or if a deed-in-lieu of foreclosure is accepted, you will assign to your mortgagee, all refunds you may be due from any source in connection with your mortgage. Homeowners are advised to consult a tax professional to determine what tax consequences, if any, they may incur as a result of a pre-foreclosure sale, a deed-in-lieu of foreclosure, if the proprerty is sold at the foreclosure auction or if the bank takes the property and sells it as an REO (real estate owned).

Finally, you must understand that the pre-foreclosure sale must be an “arm’s length” transaction -- the buyer cannot be a family member, business associate or other “favored party,” and the real estate broker cannot share a business interest with the mortgagee. No hidden terms or special understandings can exist between seller or buyer and the appraiser, sales agent or mortgagee. You cannot stay in, or return to live in the house by renting, leasing or buying it back after the pre-foreclosure sale. To do so would be mortgage fraud.

Under no circumstance should the mortgagor be encouraged to default on their mortgage for the purpose of participating in this Program. Info courtesy of Good 2 Go Home Investors, Inc.