| Foreclosure Questions Answered | ||||||||||
|
FORECLOSURE & SHORT SALE QUESTIONS ANSWERED.* What is a Short Sale (short pay)? I just received a letter indicating "Foreclosure" what do I do? Act quickly and contact professionals to review your options. Foreclosure letters come in many forms and could represent different time lines for you. Are you a Law Firm? NO, We are a team of Licensed Real Estate Professionals and support staff. Always consult an Attorney for legal advice. We would be happy to refer you to the Attorney that we use for all legal matters. There are a lot of companies offering to "Buy Houses For Cash" are you any different? YES, We are not in the house buying business. An investors willingness to buy your house is based on equity. If you have a lot of equity someone will buy your house at a discount because they know they will "flip" it or rent it using your equity to profit. I can't sleep or eat, I'm always nervous can you help? In most cases we can help. When you contact us we are dedicated to serve you honestly, fairly and with kindness. We are not a big call center, we operate a neighborhood office staffed by humble, family oriented people. Many of us have been in your situation, which is why we dedicated our practice to education and assistance. How do you make money I'm sure you don't work for free? YES this is a job and we need to get paid. All of our Pre-Foreclosure/short sale fees come from Lenders and Real Estate sales commission. We negotiate our salary or commission with your lender, or we do not get paid. Why would my bank accept less money or work with me? Any Mortgagee (the lender) can establish an estimated cost of loss if you default. Most banks and mortgage companies even have a loss mitigation or prevention department. As a general rule Mortgagee's do not want to own property. They are lenders not property managers. The cost to maintain your property after they take it from you includes: taxes, insurance, maintenance etc. The Mortgagee's "loss" can continue to grow long after you are gone. Even at a sale the Mortgagee expects to get much less than market rate because it is not an ideal way to sell property. In many cases a preemptive offer or attempt to sell your property, even for less than you owe, will actually be a better option for the Mortgagee. I started to get a lot of flyers, letters, postcards and other solicitations from people who say they can help. How did they get my information? Can any of them help me? Foreclosure is a public process. A notice is filed in court, usually by your Lenders Attorney. Once this happens there are several companies and individuals who take the information and attempt to market their services to you. Your information will even be sold several hundred times. Most of these offers are equity driven. If you don't have a lot of equity left or want to keep some of it yourself then most solicitations won't work. Remember anyone who contacts you is trying to make money. Ask yourself how will they get paid? Who will pay them? How does a short sale affect my credit? If we can sell your property before a sale it will typically show up as "paid" however the lender does reserve the right to make a notation typically "less than originally owed". The best way to preserve your credit is to act quickly. The actual foreclosure sale and subsequent judgment for the sale difference is what you MUST avoid. Your credit report will show the sale and in most cases a large judgment against you for the banks losses. I've heard there are tax consequences if the lender forgives some of the debt? YES there might be. Your Lender will report the debt as a tax loss. Similarly you will have to account for the gain. In most cases if it is a primary residence there are 5 situations that will forgive the tax burden. 1. Insolvency - your total debts exceed your total assets at the time your debt was settled or deemed non-collectable 2. Bankruptcy - the debt was already discharged through a bankruptcy proceeding 3. Indebtedness due to certain real property business losses 4. Indebtedness due to a qualified farm expense 5. Discharge of your debt was treated as a gift I know when the sale date is, do I still have time? In most cases the Lender will review offers right until the actual sale. You also might be able to take action that secures more time. However, you must act very quickly and call us for a free consultation. What will I need for the Lender? Most Lenders will require information from you. Essentially it is a reverse loan application. Instead of convincing the lender that you are credit worthy, your data should indicate your inability to pay. This may include: personal hardship letter, tax returns, pay stubs, bank statements etc. I am 60 days late, do I have to sell my house? NO, not necessarily. Although the pressure seems to be mounting there are still many options available to you. You must act quickly call us at 909-896-5370 My Husband is in the Military is there any assistance for Military families? Mortgage relief is available for military personnel under the Servicemembers Civil Relief Act (SCRA). It prohibits the sale, foreclosure, or seizure of service member property secured by the mortgage during the period of military service, or within 90 days thereafter. There are some stipulations. Should I try and sell my house myself? FSBO (for sale by owner) is always an option while you own the property. Most Lenders will require that you list your home for sale with a REALTOR who subscribes to MLS. It is a proven and the most credible method of selling property & for the highest price in the shortest time.. The Listing Agreement is often proof of your willingness and attempt to sell. Which could secure you more time to sell. I'm ready to work with you, what's next? You need to call us for a brief interview. We will get you three documents that you must sign before we proceed. a) Lender authorization letter which will allow us to communicate and get information from your Lender. b) Listing Agreement which will allow us to market and sell your property. c) Property disclosure statement verifying the condition and items in your home. Is it legal? YES, We do not condone any fraudulent activity. Everything that we do for you is done legally and negotiated with all parties involved. What options do I have? The options available to you depend on a couple of factors. a) the immediate disposition of your mortgage (what stage the mortgage is in) b) your goals, concerns and objectives. Options we might review with you include: Pre-Foreclosure Sale, Short Sale, Deed-in-Lieu of Foreclosure, Chapter 13 Reorganization of Consumer Debts, Do Nothing, Reinstatement Plan, Repayment Plan, Loan Modification, Loan Restructuring, Loan Refinance, Loan Forbearance, Assumption Partial Claim, I have a second mortgage on my property. How will that get paid or go away? In this market there is no second or third lien holder who has any interest in foreclosure. In fact the worst thing they could hear is that the 1st position lien is going to foreclosure. When the 1st position goes to foreclosure they are guaranteed to get nothing (in the current market). Many second position lien holders are settling for as little as $1000. Most 1st position investors are setting policy to buy 2nd position for as little as $1000. Everything starts with an offer on your property. The offer gets submitted to the first lien holder with a proposed HUD. If the second position is completely left out we usually pull a little from the first to satisfy the second. (on the proposed HUD) . A non-performing or "bad" loan is not good for the bank to have on their books. It hurts their loan portfolio and ability to borrow more money. In many cases it is better to accept something just to close out the loan. Contact Do Not Lose Your Home to Foreclosure! Call me for the help you need (909)896-5370 Direct line PLEASE NOTE: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney. *
| ||||||||||
| ||||||||||
