Stop Foreclosure!!!  Many homeowners who bought around the top of the market, back in 2004 through 2006, are now stuck with having purchased more home than they could afford. Through the ease of obtaining exotic adjustable rate mortgages during those years, homeowners found themselves over-encumbered with debt, having financed as much as 110 percent of the sales price of their home.

If you are at risk of foreclosure, I can help. Many people find themselves in this position. IT IS NOT YOUR FAULT. Below is some information to help you better understand the short sale process.

Find out how to do a short sale completely at no cost to you!

  • I list and market your home at no cost to you
  • My team of attorneys represent you at no cost to you
  • Negotiations done on your behalf at no cost to you

 

What are Short Sales?

A Short Sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a Short Sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds.

Banks prefer Short Sales over Foreclosure.

The banks realize that the cost of a judicial foreclosure is substantially more than what a Short Sale would be.  Due to drop in property value since 2007 there has been a high rate of foreclosures being registered. Banks would prefer short sales over foreclosures because it allows them to minimize their risk. By doing a short sale they save on marketing and legal cost associated with the foreclosure process.

Some banks are paying incentives to pursue a Short Sale.

This seems odd that banks are now paying homeowners incentives to consider a Short Sale. I can tell you from my own personal experience, while helping other homeowners, that they are paying incentives up to $30,000, and in some cases more. Now, the higher dollar amounts may not be the norm but there is documentation that they have been paid out. Part of the reason this is happening is to entice the homeowner to participate early and enter into a cooperative agreement. Federal mandates have put legislation in place that dictates bank(s) will have to respond in a timely manner. They are realizing that due to the amount of distressed sales they are dealing with, those timelines are difficult if not impossible to meet. So they have decided to make Short Sales easier and more beneficial to homeowners. Statistics prove this over and over. These are relatively new programs so not everyone will qualify, but if you’re considering a Short Sale it’s better to start early as it may put you into a position to have stronger benefits.

You do not have to be late on your payments…

Intentionally missing mortgage payments is called strategic default. That phenomenon has been increasing. It’s not good enough. Banks want to see legitimate hardship. There are exceptions. If you have to relocate for a job, that is a legitimate hardship. Nearly all banks will accept that. They know that the borrower isn’t going to keep paying the mortgage their old city. Strategic defaults were considered unethical. However, I don’t believe its financially wise to pay $250,000 for a property that is only worth $50,000. Please contact me and I can explain this process in detail.

There should be financial hardship, but it’s not as strict as you may believe.

Financial hardship can be as simple as not being able to continue to pay the mortgage. In most cases, an adjustable mortgage is a good reason to qualify. Have you experienced a job loss, cut back in work hours, divorce, death or any other challenge that is hampering your ability to make your monthly payments? You must be able to prove financial hardship. If you’ve answered yes to all of these questions, you’re probably an ideal candidate for a real estate short sale.

Remove/reduce your liability of the remaining balance.

Banks are more likely to waive deficiencies today. The U.S. Treasury has come up with a program for expediting short sales. It’s called the Home Affordable Foreclosure Alternatives program. The government provides money to second-lien holders. (Homeowners may qualify for up to $3,000 in government relocation assistance). The bank will waive deficiency and stop foreclosure.

Remove or reduce your potential tax liability.

Your Attorney will provide protection against tax liability for the difference between the short sale price and mortgage owed on the property.

Decrease negative impact to your credit.

If you go into foreclosure, your credit is going to be impacted more than in a short sale. (FICO, the credit scoring company, says that a short sale hurts a credit score less than a foreclosure, but only if there is no deficiency). Sometimes a job application will ask if you’ve been through a foreclosure, but they don’t ask about a short sale. Many people we represent have security clearance. A foreclosure affects security clearance. A short sale will have less impact on your credit.

Position yourself for a stronger financial future.

It is much easier to rebuild your credit after a short sale because it shows that you are proactive during hardship.

Position yourself to purchase another home within 3 years or less.

FHA is currently offering a forgiveness program that will allow you to purchase another home 1 year after a short sale. You will not be eligible with a foreclosure for seven years.