Foreclosures and Short Sales.
They are happening to everyone everywhere, so please don't be afraid because there is a way to get help. You have come to this page for help in dealing with a short sale or pre-forclosure state. Either your mortgage is about to adjust to a payment you won't be able to afford, or you just recently lost your job and can't continue to make the payment, or you are getting a divorce (there are other reasons). Whatever the reason may be, please don't be scared. Get informed and don't be afraid to ask for help.
When I have mentioned "short sales" to people in casual conversation or in a consulting situation, I often get the question: "What's that?"
Here is the "Short" of what a short sale is. This is not meant to be a comprehensive explanation, by any means. And there can be a lot of twists and turns involved, but this will at least get the wheels turning to consider if a short sale might be an option for you or someone you know.
There are many steps involved in a short sale, here are a few:
1. In a short sale the seller will get out from under the debt of their home, but they will not be able to walk away from the closing with any money. It is a last ditch effort to save them from foreclosure or ruined credit and they have to understand the implications.
2. Determine if the property is a candidate for a short sale by finding out what is owed and what the bank might realistically accept. I can help you with this.
3.Finding out from the lending institution and find out who their short sale person is and their contact information. I can help you with this.
4. You should find out what forms need to be filled out to be a candidate for short sale. I can help you with this.
5. There are a few other steps involved in the process, and I can explain this more in person however many people are choosing to go this route, as opposed to just "walking away" from their home and taking a huge hit to their credit.
Foreclosures
The first step is a Notice of Default. It states the amount in default. 90 days is given to cure the default by catching up on all late payments, penalties, and costs.
After the 90 days expires, the lender files a 21 day Notice of Trustee's Sale, at which time an auction is held, usually at Court, with limited publicity resulting in a greatly depressed price. After it is over, the former owner must be evicted if he refuses to leave.
The Borrower can still catch up on all late payments until 5 business days prior to the sale. Within the last 5 days, the only way to stop a sale is by payment in full of the entire balance.
Most lenders prefer NOT to foreclose. Banks are in the money business, not the real estate business. They try to avoid foreclosure, because it is bad for their books if their ratios of REO (real estate owned) and bad debts climb.
I can help you avoid this. Give me a call if you have any questions, I can help you save your house.