A foreclosure can happen when the homwowner has not been making the mortgage payments. It is the action the financial institution can use to take the house back. The homeowner borrowed money using the house as collateral with the agreement that if they could not pay it back, then the lender could take the house.
A short sale is when the lender will accept less than the full amount due on a mortgage when a property is sold. Usually, the lender will accept the short sale to avoid the time and expense of a foreclosure. Financially the lender is actually ahead after a short sale.
After the lender does an appraisal on the property and discovers that the value is less than the payoff, the lender will decide if it is worth further legal actions and cost. A business decision is made to either continue foreclosure action or accept the short sale offer.
Our strength is our expertise. We have successfully handled many Short Sales and when you refer your Short Sales to us you can focus on what you need to in order to keep your business going. The reasons are varied, depending on the individual, but here are some.
With us you avoid losing time and money using third party processors who:
Our team of highly trained specialists assures the best possible short sale experience for our clients. We pride ourselves in providing great customer service, and are committed to helping homeowners who are being affected by the worst nationwide housing and financial crisis of our lifetimes.
If you answer “yes” to any of these questions, a short sale may be the best option for you:
Not waiting too long to get started can be critical to the success of a short sale. Contact us now for a free, no obligation conversation to see how we can help you.
Please call 800.387.1970 or click here to fill out a short form and we will answer your questions.
YES. Banks have in the past negoitated and approved on a short sale even when the homeowner was current on their payments.
YES. Lenders will evaluate what your house is worth in the current market and then decide how much they will accept.
YES. Lenders are more motivated to do a short sale on a property that needs work than on a property that doesn’t. Lenders know losses start to skyrocket when they foreclose on a property that needs a lot of repair work. Lenders are in the business of lending money not property management and home repairs.
The preferred time is before you miss your first mortgage payment. However, if you’ve already missed a mortgage payment or received a Notice of Default or a Trustee Sale date has been set, contact us as soon as possible…when an offer from a buyer can be submitted to the lender, it is not uncommon to be granted an extension of the Trustee Sale date.
Our goal is to have your mortgage lenders release all demands for additional payment when they agree to a short sale. Contact us right now to discuss your particular circumstances, and we will refer you to legal and financial professionals as needed for consultation.
The Mortgage Forgiveness Debt Relief Act was signed into law in December of 2007 and may eliminate potential tax liability. Contact us…we can put you in touch with tax and legal professionals as needed to answer all of your questions
Financial experts advise that a foreclosure will have much longer and more serious effects on both your credit and future ability to get financing than a short sale will.
When the transaction runs smoothly, a short sale can take up to 3-4 months, but can take more time depending on your particular circumstances, which include:
Lenders are understanding when it comes to this situation and will actually pay the REALTORS® commission and your closing costs.
The initial work we do with you is a key factor for maximizing the chance of success. The skillful handling of your file is also imperative; having one point of contact, preferably a licensed Realtor experienced with the short sale process, can also increase the chances of success.
Many Realtors are tempted to try their hand with short sales in today’s market. Unfortunately, even a doable short sale can fail due to an inexperienced Realtor simply not following your lender’s specific procedures and requirements. Lenders may pay little or no attention to such files until just before they are scheduled to foreclose, at which time it is often too late to start over or to make things right.
Loss Mitigation is a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan.
A satisfaction is a total discharge of the debt. A release is when the lender releases the lien from the property which will then allow the home to be sold. (The borrower may still be required to repay the remainder of the debt.)
A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan. For instance, if you owe $100,000 to the mortgage servicer and they see proceeds after the auction of $55,000, the remaining difference of $45,000 can be moved into a judgment against you. This will also appear on your credit report along with the foreclosure. The lender may be allowed to take further legal action such as garnishing wages to pursue payment based on the laws of your state. Some states have restrictions and regulations on deficiency judgments, but unfortunately the majority do not.
For some more detailed information of California's laws regulating foreclosures and defiency judgments head over HERE
