Short Sales and Loan Modifications

Every day as we continue to see the effects of this declining market throughout the nation. More and more homeowners become unable to refinance their home and default on their loans do to many reasons.

1. Over leveraged Property - Meaning they owe more on their mortgage than the property is actually worth.

2. Credit - The homeowners credit score may have dropped due to many reasons.

• Unable to pay the new adjustable rate thus affecting their credit due to becoming 30 days late or more on their excising loan.


• Using their own credit cards to pay bills thus rocketing their balances and reducing their credit score.


• Homeowners request for new credit lines in the past 12 months or so thus adding more inquiries and dropping their credit score.


• New collections, bankruptcies, liens, judgements, delinquencies, repossessions, etc... These factors will also bring your credit score down.
  

3. General Hardships - Such as loss of job, death of spouse or family member, divorce, etc... All these factors my have caused hardships for the homeowner and declining their monthly income. The more common hardships you see in this day and age are the A.R.M.'s (Adjustable Rate Mortgage) and the homeowners inability to catch up on the monthly increased payments.

The homeowner may feel that there is no way out and may just want to give up! The homeowner may also feel insoluble and let the property go to foreclosure. I am here to tell you that my company along with over 10 attorney's and loss mitigation specialist can help you overcome those fears and provide you with solutions.

Solution 1. Loan Modification
A loan modification is simply a stated refinance with no closing.
We will negotiate with your lender to try to accomplish an agreement so you stay in your home. If negotiations are successful we will be capable of freezing your adjustable rate thus bringing down your payments and saving your home. Since my company is an affiliated company of a large law firm you can stay in your home for over 12 month and in some cases over 18 months until a resolution is accomplished. This means the attorney's will go to court for you and fight for your rights. The way you want to look at this solution as I said above, is a stated refinance with no closing.

This means:
1. We will refinance your home even though you are over leveraged on your home, have bad credit, and you may have experienced some hardships.
2. You don't have to pay for closing cost.
3. You may possibly be able to stay in your home payment free until we provide a resolution.

Now will this help you sleep a little better at night. I think so...

Solution 2: Short Sale
A short sale is the bank accepting less for the mortgage you owe.
Did you know that lenders (banks) do not want foreclosures? Why? I will tell you why... Banks are in the business of collecting interest on your loan. They make a ton of money on the interest they collect off you. Many times you pay more interest on your property then what you actually paid for it. Now, what happens if you stop paying your mortgage? The banks stop making money. Banks are not in the business of buying or holding property. If they get stuck with your property a lot of the time they will not sell at a public auction. The property goes back to them and it becomes a non-preforming asset. That means they just loaned you a bunch of money and they will never get it back.

Now, back to short sales.... The bank would rather sell us the loan at a discount than having it go to a public auction. We will submit, negotiate, work our hardest to try and get it approved, and then sell your property thus saving your credit and getting you back on track. In this process since we work with licensed attorney's, we will extend and postpone the public sale date for as long as it takes.

Solution 3: Do Nothing!!!
Dictionary.com's definition of (Do Nothing) is: characterized by inability or unwillingness to initiate action, work toward a goal, assume responsibility, or the like:

Now, is this what you want to do? I didn't think so...

Again, we are here to let you know that you have options and, you might want to steer away from the third one.

Feel free to post your comments on this blog or you may email me for a more personalized, confidential, and free consultation meeting.