Unable to Make Your Mortgage Payments?

If you're a homeowner & you have asked yourself any of the questions below,  I can help.

Do you owe more than your property is worth & you just don't want to worry anymore?

Do you wish your home was already sold?   Do you have a loan that keeps going up?   Have you tried to refinance only to be denied?   Are you tired of the bank calling you or borrowing from friends & family in order to make the next loan payment?

Sometimes bad things happen to good people. If you find yourself in a situation where you  can no longer carry the  mortgage on your home due to  a hardship: job loss, divorce, etc, and you owe more than your home is worth, a lender approved Short Sale may be the answer. From the presentation of a "short sale package" to working with the lenders Loss Mitigations Dept., I know how to keep the process moving towards getting you approved for a short sale and helping you avoid foreclosure - at no cost to you. The short sale package I present to a lender includes: hardship letter, financial info. (w2's, bank statements,etc), repair estimates, comps for the property, net sheet, payoff amounts, and other necessary paperwork. 

What is a Short Sale?

A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and the lender(s) agrees to accept less than the full amount owed to satisfy the debt and allow it to be "paid off", short. Lenders approve short sales and accept the resulting loss in an effort to avoid bigger losses  through  foreclosure. Normally in a short sale, the existing lender pays virtually all sales costs, including commissions, escrow & title fees. It's a way to get your home sold, your loan(s) paid off and help you avoid foreclosure.

Could a Short Sale be right for me?

With the abundance of people facing the possibility of foreclosure, mortgage lenders are open to working with you rather than taking your home through foreclosure.  Mortgage companies aren't in the home selling business, they're in the lending business and they need to minimize the potential loss on your loan. If you find yourself in a situation where you're unable to meet your mortgage payments due to a hardship, it's advantageous to a lender to try and work with you and settle the matter by doing a short sale instead of taking your property through foreclosure which would result in an even bigger loss to them.

How much will I have to pay to sell my home?

 In most cases you will pay no sales costs if your lender approves the short sale. All commissions, title and escrow fees are paid by the lender as part of the short sale approval.

What would be considered a hardship?

 In most cases as so long as the hardship is real and the lender believes the loan is likely to become delinquent , the short sale request will be processed by the Loss Mitigation Department. Crucial to getting the Loss Mitigation to accept a hardship is to submit a hardship letter. The hardship letter sets the tone for the entire short sale package.

Here's are a few of the "hardships" that are quite common and frequently accepted by mortgage lenders:

• Family illness or injury
• Illness or injury in the extended family – particularly if it forces relocation
• Job loss or significant income loss
• Divorce or split of domestic partners
• Adjustment in mortgage payment or unforeseen increase in living expenses

What if I'm still current on my mortgage, will my lender consider a short sale?

Maybe. Some lenders will accept a short sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. I can put your short sale file together within a couple days and submit it for approval. 

 How will a short sale affect my credit?

As a seller, you'll take a bigger hit on your credit report by going through foreclosure or giving the lender a deed-in-lieu of foreclosure. The points lost on a FICO score are as follows:

• Foreclosure or Deed-in-Lieu of Foreclosure
  Both of these solutions affect credit the same. Sellers will take a loss of 250 to 280 points. If your FICO score before foreclosure was 680, it could dip as low as 400.
• Short Sale
  The affect of a short sale on a seller's credit report is much less damaging. The ding on credit will show up as a pre-foreclosure in redemption status, which will result in a loss of 80 to 100 points. If you decide to sell your home by doing a short sale and you current FICO score is 680, expect to see it fall down to 580 - 600.

How long will I have to wait before buying another home?

• Foreclousre or Deel-in-Lieu of Foreclosure
  If you want to buy another home after foreclosure you'll end up waiting about 36 months before a lender will offer any kind of favorable interest rate.
• Short Sale
  The good news for short sale sellers is the wait is much shorter before buying another home. You can usually buy again in about 18 months at a good interest rate.

To find out if a short sale would work for you, call me at 559-786-2974, for a free consultation.