WHAT CAN I DO?
Whether you are experiencing difficulty making your payments or have fallen
behind, our team will explain your rights and options and will negotiate with your lender to achieve the optimum result (Click here for Options to Foreclosure). our team representatives will meet with you to answer your questions and to gather needed information.
our team works with your real estate attorney and agent so that every aspect of the transaction is reviewed and resolved the first time. Every file is handled with maximum privacy and discretion to enable you to move on with your life. You will have the option to pre-sign all of your documents and not need to attend the closing.
Whether you are in foreclosure or haven’t yet missed a payment, our team
has the solution! Call today for a free confidential phone consultation to discuss your options.
Options to Foreclosure
1. Forbearance: The lender agrees to not enforce some provision of the loan. This may include delaying or foregoing interest rate adjustments etc.
2. Restructuring: The provisions of the existing loan(s) are changed to make the payments more affordable. This may include changing the loan from a variable to a fixed rate of interest, increasing the amortization period, etc.
3. Refinancing: New loans are secured from other lenders to pay off the existing loan(s). Typically, the provisions of the new loan are more benign.
4. Deed in lieu of foreclosure: Borrower deeds the home to the lender to avoid foreclosure. This settles all amounts due to the lender. The lender will not accept this option if there are other liens against the property.
5. Short Sale: In a short sale borrower sells the home and pays the lender an amount less than is due as final settlement of the amounts owed. In a short sale the lender is basically paying the expenses of the sale to the extent they are accepting less than is due. The amount the lender forgives may be considered taxable income by the IRS.
6. Foreclosure: This is a judicial proceeding where the lender exercises their lien interest in the home. The home is sold by the County Sheriff on the court house steps. The Sheriff’s Deed extinguishes all other lien interests and clear title is provided to the buyer.
7. Bankruptcy: This is a Federal Court proceeding. It is appropriate for people who have more debts than just their mortgage. Even though this extinguishes all of the scheduled debts, it is a very negative factor on the credit standing.
Short Sale Considerations
1. Short Sale: In a short sale the Borrower and Lender voluntarily negotiate a final settlement of the amounts due. Typically, the lender will agree to accept an amount that is less than they are owed and is available from the sale of the home. Because the lender is receiving less to settle the debt it is referred to as a “short sale”. The practical effect of this is that the lender absorbs all of the expenses of closing. Borrowers who qualify for a short sale can engage a real estate agent, attorney and
our team at the lenders expense. The amount of the short may be taxable
income, but the lender has been satisfied and no more amounts will be due.
2. Foreclosure: A foreclosure is an involuntary judicial proceeding where the lender takes the home pursuant to its lien rights. The lender will then sell the home at a “Sheriff’s Sale” on the court house steps and use the proceeds to satisfy the loan. Under this option, the seller loses any equity it may have or the seller may be subject to a deficiency judgment. This means that the lender will sue the borrower for any amounts still due after the foreclosure and interest on the balance and costs will continue to accrue.
3. Short Sale Requirements: In order to qualify for a short sale, the borrower must have financial hardship. Financial hardship has a two tier test. First, the borrower must lack the assets to be able to repay the loan in full. Second, the borrower must lack the income to be able to repay the loan.
How long does the short sale process take?
There is no good answer to this question because lenders are going out of business, defaults are increasing and there is no accepted standard for approval. In some instances the first mortgage and the second mortgage require two submissions.
Notwithstanding, the our team system has been developed to achieve the best results possible. Following are the our team Short Sale Standards:
1. Every submission will be complete the first time.
2. If our team is engaged prior to contract we will endeavor to complete the submission within 7 to 10 days of contract acceptance date.
3. our team knows what is needed and will begin preparing the submission package immediately.
4. Every submission will include a summary and analysis to increase the chance of approval.
5. our team has developed a Seller Financial Package designed to make the Seller’s task easier.
6. our team will remain in contact with the lender throughout the process and will negotiate any lender issues.
7. WE WILL USE ITS BEST EFFORTS TO HAVE SHORT SALE APPROVAL PRIOR TO THE CONTRACT CLOSING DATE. HOWEVER, NO ASSSURANCE CAN BE GIVEN THAT THE LENDER WILL PROCESS THE FILE IN THAT TIME FRAME.
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