Modifications and Short Sales
YOU ARE STRUGLLING WITH YOUR MORTGAGE SO WHAT SHOULD YOU DO NEXT?
Don’t do anything until you understand your options.
Here are some of your options:
· Request a loan modification to help you better afford your monthly payments. We have been very successful helping 95% of our clients with this process.
· Sell the property at fair market value and put your equity in your bank account – where it belongs. We can help here and we will be sure you get your equity or if you are upside down we will make sure your lender won't come after you for the difference.
· If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. We can negotiate with your mortgage company on your behalf to get approved for a Short Sale. We have done hundreds of these and here’s the best part:
The lender nearly always pays all the sales costs including title and escrow fees, commissions and most repairs.
· Refinance the property and pay off existing loans.
We have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.
· Negotiate a Forbearance Agreement with your mortgage company.
For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.
First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.
Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.
· Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.
I HAVE FALLEN BEHIND IN MY PAYMENTS. HOW LONG BEFORE THEY LOCK ME OUT?
California Foreclosure Timeline
Delinquency Period
· 2 months - Current owner must be at least two months behind on the mortgage (1st or 2nd) before the lender can record a Notice of Default (NOD) So, when you become two months delinquent on your mortgage the lender will probably begin the foreclosure process by directing the Trustee to record an NOD.
Notice of Default Period
· 3 months – The NOD period lasts a minimum of three months. During this time the borrower will be contacted by the lender in an effort to resolve the situation. At the end of the three months the lender will likely direct the trustee to publish a notice of Trustee Sale.
Trustee Sale Period
· 20 days – The actual Trustee’s Sale can occur no sooner than 20 days after the Notice of Trustee’s Sale is posted on the property, published in a publication of general circulation and mailed to the borrower.
Minimum period from initial default until property has been foreclosed upon and title transferred to lender or bidder at auction is five months and 20 days*
Trustee's Deed
· If the property goes to sale on the date published by the Trustee, the high bidder action, or the foreclosing lien holder gain title to the property with a Trustee's Deed.
*calculated from the end of the period for which the last full mortgage payment was made by borrower and accepted by lender.
NOTES:
1. Borrower has the right to reinstate the loan up to five (7) days prior to the Trustee Sale date.
2. The Internal Revenue Service (IRS) has up to 120 days after the Foreclosure sale to redeem the property.
3. Upon the issuance of a Trustee Deed junior mortgages are generally extinguished.
4. If a junior lean holder is foreclosing, the lender or acquirer through auctions receives a Trustee Deed and holds title subject to the senior lien(s).
What About My Credit?
One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years.
Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible.
Keep “necessary” Accounts Current
When deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account.
A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with.
What We Do...and What We Don’t Do
¿Getting your Short Sale approved – that is our number one goal. Along the way we will take the time to help you understand the process.
It is our job to prepare you for the Short Sale process, if you feel that is your best option. We will keep you informed along the way so you know what progress is being made.
Sometimes we have to ask tough questions. In order to help you select the solution that is best for you, we will need information. We will not, however, lose sight of who we are serving. Four Things You Should Never Do If you fall behind on your mortgage:
Number One
Absolutely Do Not ever deed your property to a third party without absolute confirmation your loan has been paid off.
Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction.
If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways.
What the new owner might not do is make mortgage payments, and that could become a big problem for you.
Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation.
If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic.
Number Two
Do Not sell your home at a huge discount.
Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them.
If you have equity in your home, it belongs to you. Let’s see if we can get it to you.
For a Free, no obligation assessment, just¿fill out the form below¿to submit a request.
Note: No one will call you on the phone unless you specifically request it.
Number Three
Do Not authorize a prospective buyer to deal directly with your lender.
The buyer has one goal and one goal only, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff.
The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later.
If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real professional. It costs you nothing – the lender pays the fees.Someone should be looking out for you.
We can help, and it costs you nothing. We have fought for homeowners like you many times – and won. The lender wins also. They do not want to take your property through foreclosure. That’s why they will negotiate to get the deal done.
Number Four
Do Not do nothing.
A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Don’t let it happen – the damage to your credit will follow you for years.
Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for at least a few years, and it will be very difficult to get another mortgage for a very long time. Allow us to provide you valuable and important information by taking us up on our FREE Consultation!
At all times, your interests come first – you have my word on it.
What We Do
· Listen to you, so we understand how to help
· Provide guidance, so you can move in the right direction quickly
· Put together a great Modification or Short Sale file, so your lender will want to work with us
· At all times PUT YOUR INTERESTS FIRST!
What We Don’t Do
· We don’t try to buy your property to take your equity
· We don’t recommend that you deed your property to a third party and give up control of your home
· We won’t lie to a lender to save a loan
· We don’t ask you to do anything illegal.
Summary:
1. Call your Mortgage Company(s) and let them know your situation.
2. If you are trying to keep your house, contact us for a free consultation
3. If you are tired of struggling and can’t afford to house, we can help.
4. Call us to Short Sale your house and work with your Lender visit:www.shortselling4free.com
5. DO NOTHING AND GET FORECLOSED ON AND SUFFER 7-10 YEARS!
So don't let time get away from you! Call our FREE 24/7 informational hotline and get your FREE consultation today!
1-800-388-9960 ext 4111