The transcript of the video follows below for further review.
If you are subject to a HUD default you are in danger of a foreclosure action. Immediate action is necessary.
Foreclosure is a legal proceeding against property securing a debt, brought upon default, in which the secured creditor obtains title to the property or receives payment from a third-party purchaser. It is primarily used for cases on which HUD has a first lien on the property. Foreclosure is an appropriate action when FHA holds a subordinate lien if the value of the property is such that HUD could pay the first lien holder in full and still obtain funds from the sale of the property. Foreclosure should only be considered when it is economically feasible, based upon an appraisal of the property, the amount of the debt, and estimated foreclosure costs. Foreclosures are handled by the Department of Justice or through HUD designated Foreclosure Commissioners utilizing the uniform nonjudicial foreclosure procedures authorized by the Single Family Mortgage Foreclosure Act,
Since HUD should initiate foreclosure only as a last resort, foreclosure action is not normally warranted until Cross-Servicing action is completed, and if collection via offset (TOP) is not likely to collect the debt.
A foreclosure action must be economically feasible. This is determined by the estimated market value of the property minus the estimated cost of the foreclosure action (including the payoff of any prior liens) and minus the estimated property management and sales expenses. If the result indicates a significant recovery of funds, foreclosure may be considered. An appraisal of the property and/or title search may be required to complete this analysis.
If a debtor files bankruptcy on a secured debt, foreclosure action may be warranted after bankruptcy discharge or if the debtor is not making satisfactory payments prior to discharge.
If foreclosure action is approved, the process starts by sending the debtor(s) an appropriate “Notice of Intent to Foreclose” letter.
If you have received a HUD demand letter or a HUD Notice of Intent to Collect by Treasury Offset, contact Protect Law Group at 1-888-756-9969 for a FREE initial consultation or contact through our website at wwww.hud-debt-attorneys.com.
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