| SHORT SALE |
FORECLOSURE |
| A short sale is the sale of a property at a price lower than the amount owed
to your lender, including all sale expenses, agent fees, etc. A
negotiator is assigned to the lender to obtain a discounted payoff. As a
homeowner, you often have full relief from mortgage debt. |
You are vulnerable to a
deficiency judgment: owing debt on the unpaid balance of
your home loan. Your credit is shot between 5-7years. In the
end you have no home, no credit, and large bills. Not a good
way to start over. |
| SHORT SALE |
LOAN
MODIFICATION |
| Our
negotiators are experienced in dealing with lenders and know
exactly what to do. Don't use your energy to fight with the
bank. Use it to begin a new life. |
If you have received notice
of foreclosure from the trustee, most likely your bank has
already determined you don't qualify for loan modification.
They can lead you on in hopes to get more payments from you
and then end the modification process months down the road -
prolonging your agony. |
| SHORT SALE |
FORBEARANCE |
| Walk away
from your house payments and start fresh. |
85% of homeowners are not
able to make their second payment with a forebearance plan.
Why? You already fell behind in payments and now the
payments will be even higher to make up past payments you
missed. |
| SHORT SALE |
REFINANCE |
| As long as
you have proof of hardship, you can do a short sale on your
home: reduced income/unemployment, inability to work due to
health, medical bills, separation/divorce, death of a
spouse, etc. |
It is highly unlikely you
can refinance while still behind on payments unless you have
30% or more equity in your home, a
great credit score and employment. |
| SHORT SALE |
BANKRUPTCY |
| You walk
away from the home owing nothing. If you do (with a 2nd or
3rd lien holder), a promissory note will be established with
reasonable payoff but this is only the case of approx. 10%
of short sales. Our negotiators fight to get the minimum
amount. |
Two-thirds who file still
lose their house to foreclosure. Filing bankruptcy is best
done after a short sale in which the promissory note is
still beyond your means. This should be the very last
resort. Filing bankruptcy and also entering foreclosure is a
double whammy on your credit. |
| SHORT SALE |
DEED IN LIEU OF FORECLOSURE |
| Your
records are shown to be paid in full so your credit can be
restored faster. Usually within two years. |
This means you hand over the
keys to the bank before it hits foreclosure, saying "I give
up. I voluntarily give my house back to you." Some banks
will accept this and other will not. The consequences to
your credit are harsh because it is still recorded as a
foreclosure. |
