What is the right solution to my upside down mortgage?
Do Nothing – And you’ll definitely lose your home at foreclosure auction.
Payoff/Refinance – With this option, there should be equity in the home, and the borrower needs reasonably good credit.
Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
Loan Modification –To qualify, you must prove to the lender you have fixed the problem that caused the late payment.
Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation.
Partial Claim – A loan from the lender for a 2nd loan to include back payments, costs and fees.
Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing.
Bankruptcy – This option can liquidate debt and/or allow more time. We can refer you to a qualified bankruptcy attorney.
Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid).
Short Sale - also known as a pre-foreclosure sale can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.
For an introduction into the specialized proven and tested Foreclosure Alternative programs that we offer please read: Intro Into Our Services.
At this moment in time, foreclosures are at an all-time high. However, instead of a foreclosure, another option available to the distressed home owners is a short sale.
A short saleis when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, the buyer is now actually purchasing the property directly from the lender for a discount. This option is much better for the property owner as well as the lender than letting the house go into foreclosure. This is the option of choice for anyone that might be in the position of lost equity as a result of the current mortgage meltdown.
Finding the right real estate agent with the knowledge and experience of short sales and foreclosures is crucial. The professional teams of loss mitigators at the Short Sale Center of LeonardScott Realty are fully committed to the successful negotiation and termination of your short sale.
In addition, you'll want an agent who embraces the convenience of technology without losing the personal touch. You'll love the resources available on our website but these will never replace the time our specialist agents will spend with you, serving as your personal guide throughout this stressful but exciting process.
Understanding the Short Sale Program:
We pride ourselves in our uniquely and exclusively developed 14 Day Short Sale Program. In addition our relentless and vigorous loss mitigation strategies, mostly result in peace of mind for our informed, happy and satisfied distressed sellers succeeding in selling their distressed and upside down property with dignity and the least possible negative impact on their vulnerable credit rating which; may have taken them years or even decades to establish.
We will apply this program to sell your property with the least amount of inconvenience to you and your household members
We won't waste your time with unqualified or unmotivated prospective buyers who invade your privacy by requesting to view your property during all kinds of hours weekdays and weekends alike. Our programs eliminate buyers and buyer agents who may have the best intensions regarding loan qualification and ability to buy a property, only to find out that they do not have the resources and ability to close escrow because of escrow shortages or anti deficiency demands from junior lien holders etc. Unfortunately short sales have too many variables, since lenders play by their own rules when it comes to decisioning and approving short sales
We will pre-qualify you for a short sale and we'll only place you in the 14 Day Short Sale program if you're the perfect match
If successful you will only be required to show the house for a max of 14 to maybe 30 days, after which time there should be sufficient offers on the property to be submitted to their lender/servicer for approval. (Keep in mind that closing escrow on the average and normal short sale transaction, takes 90 days however it can be extended up to 270 days or more, depending on many unfortunate circumstances, including but not limited to the negotiators competency, schedule, ability and motivation!!!)
Negotiating a short sale with a short sale lender/investor is a tedious, complicated and difficult process, generally because it is a daunting task finding a bank official who has the authority to accept a discount, the process is complicatedas a result of various reasons:
The negotiation only begins once you get in touch with the right person: one can expect the process to involve a lot of waiting, on hold and being bounced around an intricate maze of automated voice mail systems - we know how to bypass most of these issues.
More than likely, you can expect different lenders to have different names for their departments dealing with short sale mitigation, and most often they simply make it as hard as possible for the home owner because they just can’t be bothered to give you the time of day although it is more likely that they’re simply incompetent and don’t have the knowledge or the right answers.
Lenders/investors are known by many names of which the most fitting may be “BANKSTERS”: their agents or attorneys will always fight until the very end to try and retain as much profit as possible in an attempt to cut their losses (nobody likes to lose money, especially the banking/financial industry). It therefore requires very specialized negotiating skills to convince them to accept a short sale.
The lender will also ask for financial information about the borrower. This basically involves a loan application in reverse, since the borrower(s) must prove that they have a financial hardship and inability to afford the mortgage payments. The borrower(s) must show that they have no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork as an original mortgage application!
Each individual lender has their own procedures, timelines, underwriting criteria, unique application package, and the documentation required can be very confusing while it can also be extremely complicated to complete (especially when there are more than one lender involved in the short sale transaction, resulting in you having to complete and submit two or more financial packages).
The hardship avadavat has to be carefully drafted, since this very important letter is aimed at basically telling the lender why the homeowner(s) are not able to continue making their future mortgage payments as a result of either financial or personal hardship(s). The circumstances outlined, the facts, figures, and financial statements, must correspond and be supportive of the accompanying financial statements consisting mostly of: Income Statements, Pay Stubs, Bank Statements, Tax Returns, P&L (Profit and Loss) statements (if self-employed), Benefit Statements (including: disability, social security, alimony, child support, pension and 401k statement’s etc.).
The distressed home owner(s) must be prepared to have all of the above together because if they don't, our negotiations may fail and the request for a short sale will definitely not be granted by the short sale lender/investor.
When there are two or more lenders involved and the lender in second or third position stand to lose all or most of their money, the chances of negotiating a short sale and getting your request approved by both lenders becomes more complicated. We have the ways and means to negotiate such complicated and intricate deals. We at the Short Sale Center belong to an extensive nationwide network with unlimited access to lender/investor contacts and services; enabling us to negotiate favorable sale terms on our short seller’s behalf and help them avoid bankruptcy and foreclosure. A properly negotiated short sale with a short close of escrow will obviously minimize the negative impact on your credit. Besides, our short sale services are completely free, and it comes with a guaranteed no obligation to the property owner.
Last but not least we are proud Preferred Partners of a nationwide affiliation called the Short Sale Specialist Network, with more than 8000 members throughout the country. This network for likeminded professionals aims to: link licensed and experienced agents around the country to network and blog with each other and discuss tactics aimed at developing strategies in order to better work short sales for our prospective short sale sellers.
There are many alternatives to foreclosure, of which the following 10 are probably the most relevant:
Do Nothing – If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option. Click on the Time Line chard to view the procedure
Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home, and the borrower needs reasonably good credit
Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees
Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify, you must prove to the lender you have fixed the problem that caused the late payment
Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements
Partial Claim – A loan from the lender for a 2nd loan to include back payments, costs and fees
Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened
Bankruptcy – This option can liquidate debt and/or allow more time. We can refer you to a qualified bankruptcy attorney: chapter 7 (Liquidation) The purpose of a Chapter 7 bankruptcy is to completely settle personal debt. This option is very difficult to qualify for, chapter 13 (Wage Earner Plan) This is basically a restructure of debt plan: payments are made toward a plan to pay off debts in 3-5 years, and Chapter 11 (Business Reorganization) A business debt solution
Sale – If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale
Short Sale - also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.
Typical restructuring plans
LOAN MODIFICATION – Unfortunately less than 10% of all "A" type lenders and less than 6% of sub-prime lenders (with high interest rates) will negotiate a loan modification where most of the delinquent payments and foreclosure fees are added onto the back end of the loan. Payments can remain approximately the same. In some rare cases the interest rate may be reduced permanently
FORBEARANCE PROGRAMS - Typically 30% of sub-prime lenders (with high interest rates) will only offer a workout program that requires you to immediately pay at least 20% or more of the total delinquencies including foreclosure fees, plus the balance of the delinquency will be added to their regular monthly payments over a period of 6 to 48 months. Forbearance plans do not remove a foreclosure action but simply stop it in place until the loan is current. FORBEARANCE PROGRAMS OFTEN FAIL IF THE LENDER IS NOT FORCED TO CONSIDER THE ABILITY OF THE BORROWER TO PAY!
***Please note: At the Short Sale Center, (like many other knowledgeable Alternative Foreclosure Prevention Professionals) we believe that bankruptcy is the absolute last resort – depending on your unique circumstances.
Why should you contact the Short Sale Center?
If you're facing possible foreclosure, owe more on your mortgage than what your house is worth, behind on your mortgage payments, or you’re looking at buying a distressed property at the fraction of the market value, then you’ve come to the right place for answers:
We have solutions to the financial problems faced by most distressed home owners. Whether attorney assisted or not, our programs can most likely save your home from foreclosure
The best news is that you will NEVER EVER be required to pay us a single penny to get your situation resolved (your mortgage servicer will pay us if & when we resolve your issue)
DON’T WAIT; CONTACT US NOW TO DISCUSS SOLUTIONS TO YOUR PROBLEMS IN CONFIDENTIALITY! Remember, if you're a distressed home owner, uncertain about the future of your house, don’t pay unscrupulous foreclosure consultants who take an upfront fee and never produce results
For Sellers:
Remember, if you're a distressed home owner, uncertain about the future of your house, don’t pay unscrupulous foreclosure consultants who take an upfront fee and never produce results!
We offer a completely free and an absolutely no obligation Short Sale Listing Service for distressed home owners who are behind on their mortgage payments and who are possibly facing foreclosure. We are certified, licensed and experienced in the following short sale programs: HAFA, COOP, 7 DAY SALE, and Investor Back to Back programs. We offer a comprehensive One Stop Service, where we negotiate your short sale, structure the short sale financial package, list and negotiate the transaction, postpone the TS (Trustee Sale) date if and when necessary, qualify the prospective buyer and facilitate the close of escrow.
Through our affiliation with an experienced, knowledgeable and competent Real Estate and Tax Attorney we’re even able to offer unlimited legal help to those distressed home owners who may need it.
We are licensed, certified and experienced in the following short sale programs: HAFA, COOP, 14 DAY SALE, and Investor Back to Back programs.
1. HAFA Short Sale: we are certified HAFA Specialists, if you’re interested to find out more about this Home Affordable Foreclosure Alternatives program, with a $3,000.00 relocation assistance and no deficiency judgments.
2. 14 Day Short Sale Program: we also hold the CSP (Certified Short Sale Professional) designation and can therefore help you with this proven and tested alternative if you do not fit the criteria of the HAFA Short Sale program.
3. COOP Short Sale Program: we have direct access to the assigned asset management companies who negotiate these B of A assigned short sale transactions for those distressed home owners who qualify for this new alternative program with $2,500.00 relocation assistance and no deficiency judgments.
4. Investor Back to Back programs: We have access to investors who may be interested in buying your house at below 60% of the distressed market value, and then flip the property before the close of escrow, while the transaction gets funded with a simultaneous close of escrow (commonly referred to as a back to back closing), however these transactions are very hard to negotiate and there are only a select few short sale lenders/investors who may allow and approve these type of transactions.
In a short sale: it is our honor and a real privilege to help you save your property from foreclosure and to help you and your family to maintain your dignity and protect your credit rating at all times. We will apply all our experience and specialized knowledge to prevent your lender from foreclosing on your property.
We are proudPreferred Partners of a nationwide affiliation called the Short Sale Specialist Network, consisting of more than 8000 members throughout the country. Unfortunately short sales and foreclosure prevention is such an unregulated and uncertain concept with each lender/investor applying their own personalized undocumented and often unpublished guidelines and rules, to the short sale transaction. This naturally causes a lot of mayhem, confusion and uncertainty in the short sale community:
Through our Short Sale Specialist Network all of the confusion and unknown gets illuminated, since the network has been created for likeminded professionals aimed at:
Firstly creating an outlet offering uniformed training and membership programs to all our members nationwide
Secondly providing a resource for licensed and experienced agents around the country to network and blog with each other and discuss tactics aimed at developing strategies in order to better work short sales for our distressed short sale sellers
Thirdly to also present its members with the unique opportunity to cross refer nationwide to proficient experienced and licensed agents who have the same high ethical values and standards when representing their clients whether it’s in a purchase or sales transaction. As a result we can effectively represent our buyers or sellers not only in the counties where we reside and specialize, but in fact we’re able to service them on a nationwide basis through our more than 8000 affiliates throughout the country.
For distressed property buyers:
Almost 90% of home buyers and sellers in this modern age use the internet to search when looking at buying or selling a home. We have the most up to date interactive online search program with every single listed and unlisted, pre-foreclosure, foreclosure properties available in your market area, Our mobile marketing plan enables you to reach us anytime during the night or day, and it makes us accessible 24/7 to help you find your dream home, get directions and a map, since our buyers can connect with us in one “click” to get details and or make an appointment.
Save time and money: you don’t have to search on 20 different sites, anymore since our “Buyer Assist Program” most conveniently allow you to search for any possible property in one place. You have the convenience of your own secure login and password, while you can search and save as many property profiles as you like, without losing any of your data or search criteria. All of this 100% secure and we never ever sell your name or personal information to third parties!
It's completely free and offers you the following distinct futures and advantages:
See pictures, details, maps, contact information, and more Find homes 50% (or more) below market value in your area
Explore America's most accurate source of foreclosures and pre-foreclosures in one place
Access great resources and links for homebuyers and investors Receive free daily email alerts about new properties in your area
We will guide you through the process of effortless online home search, while we negotiate the best price and terms on your behalf once we have helped you find the right property. You will love this user friendly which offers our buyers the most up to date interactive online search program for distressed properties with every single listed and unlisted, pre-foreclosure, and foreclosure properties available in your market area.
Helping Distressed Home Owners with foreclosure alternatives, as well as prospective buyers of distressed properties like you - is what we do best. We proudly offer you nationwide representation by licensed and certified agents who are some of the most experienced short sale specialists and distressed property buying agents in the country; this is of course only possible through our Preferred Partner affiliation with the Short Sale Specialist Network with more than 8000 affiliated and licensed Realtors® nationwide.
ACT NOW. DO NOT WASTE MORE TIME. CONTACT US TODAY:
Toll Free: (888) 476-8975, Fax (888) 821-4591, E-mail us: ShortSaleCA@att.netor simply complete and submit the short First Contact Form at the bottom of this page.
P.S. If you're not ready to talk to us, please tour through our website. We are convinced you'll find the resources here useful and helpful. Enjoy!
Disclaimer: As we are neither attorneys nor certified public accountants, the contents of this website should not be construed as legal or tax advice, but rather as our opinion based on previous experience only, and it obviously does not guarantee any of the suggested remedies. You will be advised of our opinion as to your best approach during a free consultation with one of our licensed advisors. We encourage our distressed clients to always consult with a competent, experienced and knowledgeable real estate attorney and/or a professional tax consultant regarding any foreclosure prevention options and the possible subsequent deficiency and/or tax consequences. If you do not know of a qualified experienced professional then we will gladly provide you with the names of qualified and competent Real Estate Attorney’s and CPA’s
We have programs to help stop foreclosure regardless of your situation:
With the right help, virtually any foreclosure situation can be successfully resolved. We have helped thousands of homeowners and we can help you too. When facing foreclosure Time is of the Essence. You MUST act fast to protect your rights and stop foreclosure. Many people who need foreclosure assistance simply do nothing and hope for a miracle. Don't fall into that trap!
Leonard Scott Realty - Short Sale Center P.O. Box 223120 Carmel, CA 93922
