The Obama administration plans to announce Thursday new guidelines designed to help struggling homeowners with Federal Housing Administration-insured mortgages.
If you have received a notice of default or are behind in your mortgage payments, we at Blue & Gold Realty can help you avoid the foreclosure process on your home by negotiating the following options with your lender:
Loan Restructure
We can negotiate with your lender to get your loan in good standing again. There are many options available to use to get a restructure approved like a separate payment plan for your delinquencies or even adding the delinquency to the end of your loan. You may qualify for a restructure especially if you have recently experienced a reduction in income or an increase in living expenses. Sometimes we can even get your monthly payment lowered!
We can help you sell your home before the foreclosure sale. We may be able to negotiate a short sale with your lender on your behalf. In this case the lender would take less than you owe on the loan and avoid a costly foreclosure process.
If the short-sale is unsucesful, we can arrange for you to simply give the property back to the lender and walk away not owing anything. This process is not as damaging to your credit as a foreclosure.
Many homeowners are benefitting from our help in these hard times. We have successfully negotiated a number of the options discussed above and have helped our clients avoid foreclosure.
We can negotiate with your lender to get your loan in good standing again. There are many options available to use to get a restructure approved like a separate payment plan for your delinquencies or even adding the delinquency to the end of your loan. You may qualify for a restructure especially if you have recently experienced a reduction in income or an increase in living expenses. Sometimes we can even get your monthly payment lowered!
Loan Restructuring is also known as a Loan Workout or Loan Modification. This type program is designed for owner occupied properties, primarily financed with an FHA, VA, or conventional type loans. Here are some key features financial institutions look for when considering a workout:
Was their a hardship that caused you to fall behind?
The harship has since been resolved?
How many payments are you behind?
Can you resume monthly payments?
These conditions are questions you need to ask yourself, to see if can you afford to stay in the home. You may also want to consider if you can pay any arrearages immediatly or can afford to pay them in a payment plan. If not, a short-sale option may be more for suitable for your circumstances.
You can apply for a Loan Restructuring, at the same time your doing a short-sale. This will ensure you are not losing anytime while we are negotiating with your financial institution. There is not upfront fee's associated or any cost unless we negotiate a settlement to your liking.
Today you hear a lot about short sale properties. So just exactly what is a short sale property? A short sale property is when the owner owes more on the mortgage, than the property is worth. These properties are not generally as affected by poor appearance and condition as distressed and foreclosure properties, but are affected by the owner’s financial situation. Short sale properties liked distressed properties may have to be sold in order to pay arrears on a mortgage or the owner may be relocating to another area due to a job change and needs to sell quickly. Because of market conditions, the owner is unable to get any equity out of the property and the alternative to foreclosure is to negotiate with the bank to get them to accept the short sale.
Benefits of a Short Sale
The benefits of a short sale to the owner is that it has a much lesser negative effect on the owner’s credit than a foreclosure. A benefit to all parties especially the lender is that there is no formal foreclosure procedure which saves time and money for everyone. The buyer/investor benefits by purchasing the property at a discount, which is usually at or below market value.
Disadvantages of a Short Sale
The major disadvantage of a short sale to the lender is that they will have to write off the loan balance. However, if the property proceeds to foreclosure, the lender ultimately will have to write the loss off their books anyway. The major disadvantage to the seller and buyer is that the lender may not agree to the short sale and foreclose on the property if the owner does not cure the default. The short sale decision can take as long as three months because there are many individuals and/or departments of the lender’s loss mitigation and the lender’s attorneys that must review the short sale proposal and approve it.
Short Sale Process
At Blue & Gold Realty, we can help you with the short sale process. The first step in the short sale process is for us to contact your lender and make sure the property qualifies for a short sale. If you have already received a notice of default, there is a better chance that the lender will consider the short sale as an alternative to foreclosing upon the property. Our team of experts will write you write your hardship letter and help you put together other documentation needed to submit to your lender. We may be able to successfully negotiate a short sale on your behalf with your lender, allowing you to avoid the foreclosure.
After an unsucessful attempt to short sale your property, we can arrange for you to simply give the property back to the lender and walk away not owing anything. Most financial institution will only accept a Deed in Leiu after you have attempted unsucessfully to sale the property. This is not as damaging to your credit as a foreclosure.
See Short Sale section for more information on how to proceed.
