You Have Options

Professional Representation – Free to you

If you have fallen behind on your mortgage you will receive information – and lots of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them.

Don't Do It!

Don’t do anything until you understand your options.

Here are some of your options:

Sell Your Property

• Sell the property at fair market value and put your equity in your bank account – where it belongs. We can help here and we will be sure you get your equity.

A Short Sale

• If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. We can negotiate with your mortgage company on your behalf to get approved for a Short Sale. We have done hundreds of these and here’s the best part:

The lender nearly always pays all the sales costs including title and escrow fees, commissions and most repairs.

Refinance

• Refinance the property and pay off existing loans.

We have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.

Negotiate a Forbearance Agreement

• Negotiate a Forbearance Agreement with your mortgage company.

For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.

First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.

Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.

Do Nothing

• Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.

Call  us at 1-386-445-5500. We can make things easier than they might seem, and we will do a lot of the legwork.

Things You Should Never Do
If you fall behind on your mortgage

Number One

Absolutely Do Not ever deed your property to a third party without absolute confirmation your loan has been paid off.

Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction.

If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways.

What the new owner might not do is make mortgage payments, and that could become a big problem for you.

Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation.

If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic.

Number Two

Do Not sell your home at a huge discount.

Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them.

If you have equity in your home, it belongs to you. Let’s see if we can get it to you.

Number Three

Do Not authorize a prospective buyer to deal directly with your lender.

The buyer has one goal and one goal only, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff.

The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later.

If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real professional. It costs you nothing – the lender pays the fees. Someone should be looking out for you.

We can help, and it costs you nothing. We have fought for homeowners like you many times – and won. The lender wins also. They do not want to take your property through foreclosure. That’s why they will negotiate to get the deal done.

Number Four

Do Not do nothing.

A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Don’t let it happen – the damage to your credit will follow you for years.

Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for at least a few years, and it will be very difficult to get another mortgage for a very long time.

Get Professional Representation

Getting a short sale approved by the existing lender is a multi-step process that requires patience, persistence and a lot of experience. If you decide that a short sale is the best answer for your situation, have a qualified professional represent you.

Do not allow a purchaser to work directly with your mortgage holder!

Don’t let the purchaser speak for you

In order to get a short sale approved your mortgage holder will require that you provide a great deal of personal financial information and documentation. You don’t what the purchaser discussing the details of your financial situation with your mortgage holder. You have absolutely no control over the purchaser and what they tell your mortgage holder.

The purchaser is interested in one thing, and that is to get the best deal possible. The negotiation with your mortgage holder could be unnecessarily drawn out by the purchaser to the point that you would not be left with time to avoid foreclosure in the purchaser does not close escrow.

Professional Representation – Free to you

Because the mortgage holder pays the real estate fee, professional representation is free to you. In effect, the mortgage holder pays the real estate fees, along with most other sales costs, so the short sale file can be handled by a professional.

The mortgage holder knows that it is in their best interest as well as that of the borrower to the have short sale file put together properly from the beginning, by a professional that does not have a conflict of interest.

What About My  Credit?

One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years.

Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible.

Keep “necessary” Accounts Current

When deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account.

A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with.

Still have questions? Please contact us anytime! We look forward to hearing from you.

 1-385-445-5500