5/25/2010 10:28:32 AM

Double Dip in Home Prices?

If you're wondering whether to do a short sale on your home in San Diego now or to wait it out while the economy and hom Read More...(1)

5/19/2010 12:38:09 PM

New Record High for Mortgage Delinquencies

In our last post, we reported that foreclosures were down for the first time in two years. But now, the latest reports s Read More...(1)

5/11/2010 4:10:19 PM

Foreclosure Filings Down in April in California

Read More...(2)

1. 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.
2. 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.
3. Reinstatement - Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
4. 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. Call 1-888-995-HOPE
Go to www.makinghomeaffordable.org
5. 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.
6. Partial Claim - A loan from the lender for a 2nd loan to include back payments, costs and fees.
7. 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.
8. Bankruptcy - This option can liquidate debt and/or allow more time. I can refer you to a qualified bankruptcy attorney. --Chapter 7 (Liquidation) To completely settle personal debt. --Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years. --Chapter 11 (Business Reorganization) A business debt solution.
9. 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.
10. 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 more short sale information contact us below.

There may be several options available to you and there may be more than those listed above. It is best to start by consulting your lender or an attorney or a CPA. If you chose to use Coastal Premier Properties to assist you in negotiating the short sale of your home, then your home is sold, the mortgage is satisfied (paid off) and you avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even better, your credit rating will almost immediately improve because your credit report shows that your mortgage was paid in full.

A Short Sale is a win-win solution for the home owner and the lender. The lender gets the highest price for a quick sale at a market price. The borrowers get their credit restored and generally get relief from possible future legal actions and deficiency judgments.

Short Sales occur when homeowners sell their property for a sales price less than the amount owed along with the cost of selling. The amount owed may include all loans on the property, taxes, liens, and closing costs. In order for this to take place the lender must accept a discounted payoff; meaning the bank gets paid less than the full loan amount owed.

The end result is your home is sold, the mortgage is satisfied (paid off) and you avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even better, your credit rating will almost immediately improve because your credit report shows that your mortgage was paid in full. And it’s at no cost to the homeowner.

Do I Qualify for a Short Sale?

In order to qualify for a short sale a homeowner must prove hardship. Here are some examples of hardship:

• Reduced income or unemployment
• Inability to work due to health reasons
• Separation or divorce
• Medical bills
• Business failure
• Death of a spouse
• Adjustment in mortgage payment or unforeseen increase in your monthly expenses
• Any other circumstance that cripples your ability to repay your mortgage

Does It Matter Who Does a Short Sale?

Yes. Traditional realtors with little or no short sale experience only get 30% or less of their short sales approved. We have proven systems put together directly with the banks to ensure our chances of getting your short sale approved. Although we cannot guarantee that the bank will give us approval, we will do our best to complete the short sale. With over 25 years of successful real estate experience, we closed over 250 transactions in 2008. We are honest, hardworking and care about you, our client.

How Do I Get Started?

First, you need to make sure that a short sale is the right option for you. Before contacting us, it is best to contact your lender to see if you can get a loan modification worked out with them. You can also contact www.makinghomeaffordable.gov which is a website provided by the Obama Administration to help homeowners. You may also contact your accountant or attorney for advice for your situation.

If you still decide a short sale is the best decision for you, contact our team at San Diego County Short Sale and we would be glad to send you our short sale package to get started.