My house in foreclosure -- I want to sell first!

4 months behind in my mortgage. I haven't been able to show enough income for a Repayment Plan, and concurrently it's been moved into Foreclosure with a Sell Date of August 1st. It's now June 23rd. The RE market is strong here, it's a great time to sell, and I'm told I have from $60,000 to $80,000 equity in my house.

It's very clear to me it's time to sell the home -- here are my questions:

- Can I put my home on the market, and how much must I/do I want to tell my lender?

- Is there a way to stop the foreclosure (and associated fees) if I get a buyer under contract who has to close after August 1st?

- Is there a way to determine the amount of the legal fees I'll be charged by my lender's foreclosure atty?

- Is there a cap on those fees, or could they try to eat up my equity with them?

thank you!

These are serious and significant questions. You need to discuss this with an attorney in your area who can give you specific advice tailored to meet your precise need----in particular, since you appear to be up against a deadline.

First and foremost, I'd strongly suggest you contact your lender with (some of) your questions. A buyer under contract doesn't automatically stop the proceedings but your lender may be willing to at least slow the procedure. (It can be done behind the scenes.) In my opinion, as long as you're still legally in title to the home, you can put the property up for sale, but realize that those foreclosure proceedings must be cleared at closing. (Title will typically clear all existing liens and proceedings.) Ask your lender what standard procedure is in circumstances such as yours; what documentation would they need? A current purchase agreement may be enough to get their attention, but depending on how long this has been going on, that alone may not be sufficient. They may want a bonafide commitment letter (not the standard "pre-approval" letter) from the buyer's lending institution, along with a confirmed closing date. (It all depends both on your particular lender and your jurisdiction.)

I wouldn't suggest you do anything concrete, i.e. sign a listing agreement & put the property up for sale without consulting (and retaining) an attorney. To answer one of your questions, yes, there are certain statutory limitations in the type and amount of the fees a lender can charge but it's also a given those fees are increasing daily (per diem) the longer you wait. (Certain states may also place a limit on the amount of attorney fees as well.) The attorney may also have access to legitimate appraisers, who can give you a realistic value for your property. (Beware of those claiming such equity when the real estate market nationally is in such shambles. Real estate agents now are extremely "motivated" and may not provide necessarily accurate information. Lenders nationally are coming down hard on inflated appraisals; values are being scrutinized as never before and you may not even realize your buyer's lender has lowered the value.) FYI: a "hot market" can be construed either way.. could mean a buyer's market, not necessarily a seller's. Personally, I'd also suggest you do some research & see how quickly houses are closing (not just put up for sale) in your area. (Just a suggestion.)If the numbers do end up appearing in your favour, (and even if they don't), seek good legal counsel in your area.

Just a few thoughts. Good luck.