Saving Families From Foreclosure

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OPTIONS TO AVOID FORECLOSURE

If your home is at risk of foreclosure, you don’t have to panic. There are many ways to ease the difficult situation, and one may be right for you.

Reinstatement: To reinstate a mortgage, the homeowner has to pay all the missed payments, late fees and legal fees that are due up to the date that the loan is reinstated.

Forbearance or Repayment Plan: The lender allows the buyer to pay the missed amount over a period of time or the lender places the missed payments on the end of the amortization of the loan.

Rent the Property: In same cases, homeowners facing foreclosure will have payments low enough to allow them to rent their property and keep up their mortgage payments.

Sell the Property: If sellers have equity in their property, they can sell it and prevent foreclosure.Refinance: If homeowners have sufficient equity and income and their credit has not been too badly damaged, they may be able to refinance.

Mortgage Modification: A loan modification is very similar to a lower interest refinance where the lender lowers the interest rate on the existing loan to lower the payments.

Short-Refi: This process involves the refinance of a home with a reduction in the principal balance and often the interest rate as well.

Deed-in-lieu of a Foreclosure: A deed-in-lieu of foreclosure is sometimes referred to as a friendly foreclosure.

Bankruptcy: A bankruptcy may stop a foreclosure and allow homeowners to reorganize their debt and keep their property.

Service Members Civil Relief Act (SCRA): This law provides certain protection to military personnel who are in foreclosure in specific situations.

Short Sale: When homeowners owe more on a property than it currently is worth and one of the previous solutions does not apply to their situation, there is the option of pursuing a short sale.

Options to Avoid Foreclosure

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Foreclosure Vs. Short Sale

From Condos to Multi-Million Dollar Estates, a short sale may be the best solution for you.

Fact – Loan Modifications are hard to come by, rarely offer principal reduction and generally require many months of frustration to get any answers.Solution – NO COST SHORT SALE. Your mortgage debt may be eliminated and it will cost you nothing. Fact – Loan Modifications generally require you to fall behind three months or more before the lender will talk to you.Solution – NO COST SHORT SALE. Can be completed while current on your payments allowing you to purchase another property immediately (Per Fannie Mae/Freddie Mac) Fact – ¼ of all mortgage holders in Southern California owe more on their mortgage than their property is worth.Solution - NO COST SHORT SALE. A workout that allows you to get away from a bad debt you can no longer afford. Fact – A Foreclosure is extremely damaging to your credit,job or promotion prospects and will cause you to be viewed as a security risk.Solution - NO COST SHORT SALE. Is viewed as a workout, not a kick-out; Is far less damaging to your credit and allows you to borrow money again far more quickly. Fact – Foreclosure is very expensive to the bank and is damaging to local communities and the economy.Solution - NO COST SHORT SALE. Is beneficial to all involved and helps the communities and economy. Is your loan modification keeping you stuck? A short sale could be the solution you need. We have the experience, knowledge and the contacts with banks to get your short sale completed now. Please contact us today to learn more!

Loan Modification Vs. Short Sale

A successful short sale requires a lengthy process, one that is best initiated early on. The entire short sale process can take anywhere from three months to a year or more when considering the many negotiations needed before the actual sale. Our short sale experts will be invaluable assets for anyone seeking a short sale, helping to make sure communication is expedited to see the process resolved.

The following steps are involved in the short sale process:You must be considered in a distressed state, most often with the home entering the foreclosure process, but many lenders are now willing to negotiate a short sale even if your mortgage payments are current. Proving your financial situation to your lender may help them reconsider allowing a short sale of your property.

In order to prove to your lender that you are not able to make your mortgage payments, you must gather documents of proof of your financial hardship. These documents are similar to those you may have used initially to qualify for your home loan, but this time you are proving that you would disqualify for the loan. Additionally, a letter explaining the cause of your financial hardship should be written. These documents, combined with market trend reports, market analysis, and any other useful information that can help your lender decide why your request for a short sale should be granted.

If your lender agrees to accept a short sale, your home must be placed on the market and evidence of a concentrated effort to sell the property at market value must be provided. Your lender must receive detailed information about the effort to sell your property, another advantage of hiring a short sale expert from Advantage Short Sales to aid in the process.Once you have found a buyer for your home, the purchase contract and other documents are provided to your lender for approval. If your lender accepts the offer, the sale of your home continues in the same way as any other real estate transaction.

In most instances, your lender will pay almost all of the fees and commissions required by all of the parties involved in the process, leaving you to pay nothing. However, your lender may require you to pay for any appraisals or back dues owed to a homeowner’s association. In no instance are you allowed to complete a short sale with any form of financial gain or proceeds.

The Short Sale Process