In this day and age, there are many homeowners who owe more than their property is worth. For some, this isn’t a problem, but for others they wish there was an answer, an option to allow them to move on. The reason for this can be as varied as there are homeowners. It could be due to a financial hardship (such as a business failure, a loss of a job, or reduction in income). It could be divorce, or illness, or death. It could be relocation … and the list goes on!
And then there are those who don’t have the obvious hardships but still have a problem to resolve. There are investors with rental properties who are wanting to make the best financial decisions for their portfolio. And there are homeowners who would just like to take advantage of the current interest rates and low housing prices so they can purchase their dream home (now that it is affordable).
All of these problems can be solved. There is indeed an option that can help solve whatever burden or dilemma a homeowner may face. And the first step is to explore the options and to make a plan.
Short Sale Solutions is here to help.
What Options Are Available for Homeowners?
To be honest, we are short sale specialists. We don’t refinance loans or provide loan modification help. However, having been in this business for years, we have developed a wide network of professionals that we can point you to. We truly believe that a short sale may not be the best option for everyone – depending on the homeowner’s desires and particular situation. That is why we encourage homeowners to explore all of the options available to them. We offer a free and confidential consultation, to discuss your particular situation and help you understand all your options. And based on your needs, we will refer you to the right professional.
The solutions range from:
For those who are not behind on their mortgage payments, there are government loan programs that allow homeowners to refinance their home despite the fact that the value of their home has declined and they owe more than their property is worth. The HARP Refinance program requires that the mortgage be owned or guaranteed by Freddie Mac or Fannie Mae. The FHA Refinance program is for non-Freddie or Fannie loans (except FHA, VA or USDA).
This is the option for those who are struggling financially or who have fallen behind in their payments. There are many programs that can lower your monthly payment or possibly reduce principal, the most popular being the HAMP program (Home Affordable Modification Program). If you want to keep your home, we highly recommend that you try this option first. We can refer you to a reputable loan modification attorney who can help you analyze whether or not this is a viable option for you, as well as assist with the process.
Deed in Lieu of Foreclosure
This complicated term simply means to give your property (deed) back to the bank so as to avoid foreclosure. This option is typically not available if there is a second lien. The most important thing to determine before making this decision is whether or not the deficiency balance will be forgiven. It is generally thought to be less damaging than a foreclosure, but not as good an alternative as a Short Sale.
Of course, this is the option that most people are trying to avoid (although there have been a few instances where it was the best choice for the homeowner’s situation!) Unfortunately, many homeowners put off exploring their options until it is too late, or mistakenly think there is no other way. Letting your home go into foreclosure will damage your credit for the next seven to ten years.
Our specialty. This option is for homeowners who do not qualify for a refinance / loan mod or would like to sell their home. We will negotiate with the lender to allow for the sale of your home at less than what is owed. We have a proven process in place and will handle every detail. In addition, there are many incentive programs that give homeowners money to help pay for moving expenses. This amount can range from $2500 to $30,000 and it is our job to make sure that homeowners are considered for these programs.
This can be a good option for homeowners, especially if there is additional debt besides their mortgage. If it is determined that this choice should be explored, we do have several trusted bankruptcy attorneys that we can refer. (By trusted, we mean that they will only recommend bankruptcy if it is the best solution … they don’t push homeowners into it just to make a buck!)
Rent Out the Home
This is a pretty self-explanatory option … put someone into your home that can make the payment. In today’s economy, it can be tough to get enough rent to cover the payment, however for some homeowners this is the best option. If you find yourself getting into the landlord business, we can recommend property management companies that can help you with the associated tasks.
Accept the Situation
For some people, after reviewing their options, they make the determination that staying where they are at is the best decision. However, the key here is education … and gathering enough information so you know and are comfortable that this is the right choice.
How Does The Short Sale Process Work?
Short Sales are a very time consuming and detailed process. That is why it is important to have an expert handle every step of the process.
Whether you come to us directly, or your real estate agent has brought your file to us, we require an initial consultation. During this conversation, we can answer any questions you may have about the short sale as well as help you understand the documentation that we will need to collect. It is important to discuss what steps you have taken prior to our receiving your file (such as a previous loan mod attempt) so we can position you in a way to ensure a successful outcome.
This step is the most critical and probably the most difficult for the homeowner, but we are here to help and will outline precisely everything you will need to collect.
Marketing Your Property
In order for a short sale to be successful, you have to have a buyer. So it is during this time that your agent will be actively marketing your property to find a qualified one. It is essential that you cooperate with your agent in showing your property so that a buyer can be obtained as quickly as possible. If you come to us directly, we can assign a real estate professional who is an expert in his or her field.
Package Submission & Follow Up
Key in the success of your short sale is our ability to communicate effectively with your lender(s). We have many contacts in the industry and know the lender’s language. We submit a thorough and well-prepared package, and bring our experienced negotiation skills to the table.
Approval & Closing
Once we get a short sale approved, we make sure all lender requirements are met and follow the sale through escrow until closed.
What Does Short Sale Solutions Offer?
We are committed to helping homeowners get out of their situation and move on with their lives. We offer:
- Incentive Qualifying Program
- Personal Service
- Timely Updates
- Complete Documentation Collection
- Experienced & Effective Licensed Negotiation
What Should You Watch Out For?
Of course there are many people out there who want to take advantage of unsuspecting homeowners, so you should be aware that:
- You Should Not Expect to Pay Any Fees Nor Receive Money (unless you qualify for an Incentive Program)
- Never Sign Over the Deed or Title of Your House
- You Do Not Have to Move Out of Your Home Until Escrow is Closed
- Filing for Bankruptcy May Not Save Your Home