Chances are, you or someone you know in San Diego is facing the possibility of foreclosure. But you need to understand that you are not alone.
Today, 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
Through my experience handling distressed property sales with RE/MAX United, I've found that homeowners today have more questions than answers about their circumstances. On this page, I have tried to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.
If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.
Understanding your options now could mean all the difference in the world.
When does foreclosure begin? Lenders will initiate foreclosure proceedings when homeowners become delinquent in their mortgage obligations, usually after two payments are missed. The lender will then notify the buyer in writing that he or she is in default. The lender can request a trustee's sale or a judicial foreclosure, in which the property is sold at public auction. A borrower can cure the default by paying the overdue amount and the pending payment after the notice of default is recorded, usually no later than a few days before the property's sale. Some sales allow the successful bidder to take possession immediately. If the former owner refuses to vacate the premises, the court can issue an unlawful detainer that allows the sheriff to come out and evict them. Borrowers should do everything they can to avoid foreclosure, which is one of the most damaging events that can occur in an individual's credit history.How long do bankruptcies and foreclosures stay on a credit report?Bankruptcies and foreclosures can remain on a credit report for seven to 10 years. Some lenders will consider an borrower earlier if they have reestablished good credit. The circumstances surrounding the bankruptcy can also influence a lender's decision. For example, if you went through a bankruptcy because your employer had financial difficulties, a lender may be more sympathetic. If, however, you went through bankruptcy because you overextended personal credit lines and lived beyond your means, the lender probably will be less inclined to be flexible. What are the qualifications for a Home Affordable Refinance/Modification? According to the resources released by the government, following are a list of qualifications:
How do I qualify for a mortgage modification? The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments): H.O.P.E. for Homeowners, Loan Modification, or Loss MitigationPrior to contacting your mortgage lender you can quickly complete an eligibility test at MakingHomeAffordable.gov This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit the HopeNow.com website What if I don’t qualify for a mortgage modification, can’t afford my home, and owe more than it’s worth? You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents like me, with the Certified Distressed Property Expert® Designation, have undergone extensive training in how to process and negotiate short sales. A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify. Can a home seller sell a home for less than its mortgage? Yes, in some case you can sell your home for less than what you still owe on the mortgage. But it is complicated and depends on the lender. This situation is known as a "short sale." Sometimes a lender will be willing to split the difference between the sale price and loan amount, which still must be paid. A short sale may be more complicated if the loan has been sold to the secondary market because then the lender will have to get permission from Freddie Mac, the two major secondary-market players. If the loan was a low down payment mortgage with private mortgage insurance, then the lender also must involve the mortgage insurance company that insured the low-down loan. Can I qualify for a mortgage after a short sale?YES. In as little as 24 months, a homeowner that successfully completes a short sale may qualify for a FHA mortgage. If a homeower is foreclosed on, it may take up to 7 years before they can qualify for another home mortgage.How does a home go into foreclosure?For California, foreclosure proceedings usually begin after a borrower has skipped two mortgage payments. The lender will record a notice of default against the property. That allows the borrower to satifsy the past due amount within 90 days. Unless the debt is satisfied within that time period, the lender will foreclose on the mortgage and proceed to set up a trustee sale. The trustee sale can take place 20 days after the 90 day Notice of Default was recorded. How long does it take to complete a short sale? Depending on the lender, it can take anywhere from 3-9 months. Can I stay in the home during the short sale process?Yes! You can stay in the property until the short sale is complete. It's often a great opportunity to help you build up some funds before the sale and move. Will I receive any money from the sale of my home?Usually, the answer is no. But in some situations, qualified home owners may received up to a $3,000 moving allowance. Ask me if you qualify. What is the cost to a home owner wanting to sell a home as a short sale? Some companies do charge for this service, but my charges to homeowners for selling the home is zero. The lender will pay for the marketing fees and closing costs in a short sale.
Time is Critical - Act Today! Please contact me today for a free confidential evaluation of your individual situation, property value, and possible options.