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Archive for the 'Short Sale Information' Category

How To Get Your Foreclosure Sale Postponed

Don’t Wait Until It’s Too Late

So you’ve received a “Notice of Default” from the county court system.  Other than the filing date and some legal ease, there isn’t much to it.

While it does mention that if your mortgage isn’t brought current, your home could be sold at a trustees’ sale.  No sale date is included in the notice.

So many people have received these notices and because they are receiving an overwhelming amount of mail regarding their deficiency, it hasn’t had the impact that it should.

That’s what happened to a client in Lincoln.  They had received a “Notice of Default” but didn’t understand what it was and what it meant.

The lender had been barraging them with paper, people had come by to check on the home and occupancy but as far as they knew, they were working on a loan modification.  As far as they knew, like their friends who had gone through the same thing, they still had another year left before they needed to be concerned about moving if the loan modification failed.

They thought..

“…In 3 Weeks, Your Home Will Be Sold At A Trustees’ Sale…”

I got a call in early October while on vacation with my family at Disneyland.  The person on the other end of the phone was upset, that much was clear.  She had just received a “Notice of Trustees’ Sale” taped to her front door.

This notice said that in 3 weeks, her home would be sold to the highest bidder at a trustees’ sale on the courthouse steps in Roseville.  She was shocked to receive this notice.  To her knowledge, she hadn’t been notified that her home would be auctioned off.  She thought she would get more notice.

Not to mention that 3 weeks wasn’t enough time to find a home and move.  She was beyond upset and looking for any help.  Her lender could care less stating that she had an opportunity to make her mortgage current, hadn’t and now it was time for the bank to recoup what they could by forcing the sale of the home through the courts.

I told her that getting a trustees’ sale postponed with 3 weeks left was very difficult and only had a small probability of success.  It’s possible but we’ve got to move fast to have the best chance.

I called my short sale negotiator, she got over to her home and got it listed.  Fortunately, the seller already had all the paperwork together.  All we needed to do was to get it listed and get an offer.

List Your Home In A Short Sale

The result??  After the hurry up, we managed to get the trustees’ sale postponed with only a few days left.  We were very fortunate that the lender, OneWest formally known as IndyMac, was easy to work with.

With other lenders, it’s not easy to get a trustees’ sale postponed that quickly especially going into the slower winter sales months.  We were able to get it done and extend the time this homeowner was able to stay in her house by over 2 months.

Generally, short sale approvals take longer but in this case it came in just 30 days.  The seller now knows exactly when she needs to move and will have plenty of time to do it and will benefit financially from not going through foreclosure when it could have and was avoided.

Have You Received A Notice Of Default?

If you’ve received a “Notice of Default” and are facing foreclosure, your time is limited.  Acting sooner than later will help us to get your sale date postponed and extend your time in your home by selling it in a short sale.  It’s better for your future financial position giving you a myriad of options whereas going through the foreclosure process does not.

Short sales are being approved at a higher rate than ever before because it’s the best option for the seller and the lender.  Give us a call, text, email or simply fill out the form below and we’ll call you promptly.

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Tags: postpone foreclosure sale, rocklin roseville lincoln sacramento

$25,000 Reasons To Sell Short

Your Lender Would Rather You Sell Short versus Letting Them Foreclose

There are many benefits to a homeowner who has received a Notice of Default to consider a short sale but what I heard yesterday from one of my clients takes the cake.

Recently, lenders have begun offering incentives to homeowners who are facing foreclosure by paying them to sell they’re homes in a short sale.  The HAFA program, for instance, pays a homeowner $3000 if they qualify for the program.

My client has a friend who lives in Crocker Ranch in Roseville.  For various reasons, she found herself in a situation where she needed to sell her home.  In her contact with her lender, she learned that they would pay her $25,000 to sell her home short rather than go through the foreclosure process.  Her lender is Chase however I don’t know who the investor was on her loan.

My assumption is that Chase is offering incentives on the mortgages that they own and not on those they only service.

There have been reports in the media that lenders would be providing incentives for homeowners to sell short but this is the first instance I’ve heard of this much being given to a homeowner.

The fact is it costs a lot of money for a lender to foreclose on a homeowner.  Clearly, if  you take this as an example, it costs more than $25,000 for this lender to foreclose.

The Top 5 Reasons To Short Sale

Obviously, there are more reasons to sell your home short especially if you’re facing foreclosure.  Going through the foreclosure process isn’t fun.  You lose control and may have to move on short notice not to mention the embarrassment, stigma and possible humiliation of foreclosure.

Here’s my top 5 reasons to sell your home short if you’re facing foreclosure:

1) No Deficiency Judgment - California Civil Code of Procedure 580e passed in July say that when lenders approve your short sale, they give up the right to sue for a deficiency. Not so with if they foreclose.

With a foreclosure, a lender in second position can come after you for the deficiency.  If they agree to accept what the first mortgage is offering them in a short sale then they can’t come after the deficiency.

2) Purchasing Another Home – When you sell your home short, you can purchase another home in 2 to 4 years versus 5 to 7 years with a foreclosure.

Current Fannie Mae/Freddie Mac guidelines view a short sale and the homeowners attempt to do whatever they can to make their situation better more favorably than if they go through foreclosure.  Therefore, they homeowners to purchase another home in a shorter time frame if they sell short.

With Fannie Mae and Freddie Mac originating 80% to 90% of all mortgages, it’s a good thing, if you plan on purchasing another home, to sell your current home in a short sale versus going through the foreclosure.

3) It Costs You Nothing - All fees for the short sale are paid out of the proceeds of sale. The homeowner pays nothing.

4) You Avoid The Humiliation of Foreclosure - The foreclosure process is rough and can be very humiliating. From posting notices on your door to having to answer questions asked by bank representatives to investors coming to your door asking questions about the condition of your home..none of this is fun.

5) Credit Is Less Affected - While the credit score declination is similar to that of foreclosure, borrowers have found that they’re credit rating improves faster for a short sale than for a foreclosure.

The quicker recovery of your credit score will help you in all aspects of your life.

If you’ve received a notice of default, you’re facing the sale of your home 90 days and 2 or 3 weeks.  Your time is limited and the sooner you contact us the better chance we have of helping you to avoid foreclosure.

Please call, text, email or simply fill out the form below and we’ll get back to you promptly.

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Tags: reasons to short sale rocklin roseville lincoln sacramento

Short Sale Frequently Asked Questions

Get Answers To Your Tough Questions

I get calls every week from people who have received a notice of default asking what the process of a short sale is and what it entails.  Most of these folks don’t understand that there will be a trustee’s sale on their home in a specific timeframe established by law.

There has been and always will be misconceptions especially in this information age.  I  have read articles online from “experts” who are saying things that aren’t entirely true and while they may be well meaning, this market is very different from markets of the past.

There are constantly changes to the process and some of these changes, most in fact, benefit the homeowner.  At least one lender is offering $25,000 to $40,000 to their borrowers to sell their home short versus going through the foreclosure process.  Does that make sense on the surface?  No it doesn’t make much sense to anyone but it does point to one thing:

Selling your home in a short sale is a less expensive option for you and your lender.

If this weren’t the case, would lenders be paying homeowners to sell short?  No they wouldn’t.  As far as homeowners go, everything works in their favor if their lender/s approves the short sale.  Approvals in short sales has never been higher.

So with that, here are the most frequently asked questions I’ve received from people who have received a Notice of Default about the short sale process.

1)  “Can my lender take my assets?” – Your home is a secured asset.  When you signed your loan documents, they clearly say that if you don’t make your payments, your lender will foreclose and take title to your home.  Foreclosure isn’t like a bankruptcy where a judge determines whether or not you pass a “means test” to continue with your filing.  If a homeowner stops making their payments, the lender will take the house.

2)  “Do I have to have a hardship to be approved for a short sale?” – Short sales are being approved at a higher rate than ever before for a variety of reasons.  How a “hardship” is defined has changed as well.  Negotiators I’ve spoken with have even gone so far as to say that being underwater is reason enough to be approved for a short sale.

I represented a client last year in Loomis who had a rental home and the income to afford the payment on their homes.  Bank of America approved their short sale based on the fact that their income had dropped in this economic downturn but clearly their income was enough to afford the payment.

I represented another client in Citrus Heights this year in the same situation.  They could afford their payment but because their home was worth 65% less than what they owed, they chose to stop making their payments.  We approached their lender with a short sale and they accepted it.

These are just a couple of instances I can cite where no real hardship existed per se.  No divorce, no bankruptcy or job loss.  Yet in these cases and many others, the short sale was approved.

Some Realtors say that you must have a serious hardship to be approved for a short sale and this has been the case in the past.  That’s not what we’re seeing now.*

3)  “When can I purchase another home?” – Current conventional financing requirements say that after a short sale you can obtain a loan for another home between 2 to 7 years depending on your loan to value, how your credit has been maintained and the circumstances surrounding your short sale.  With FHA financing, it’s 3 years from completion date.

After a foreclosure, current conventional financing requirements are 7 years after the completion date unless there were extenuating circumstances where there are several time frames listed.  For FHA financing, the waiting period is 3 years after the completion of the foreclosure.

FHA financing is generally more expensive than conventional financing so choosing to save up a 20% down payment will go along way toward you being qualified to purchase another home.

Then the question is…will you be hurt by purchasing in 2 or 3 years from now?  All indicators are pointing to the real estate market bumping along the bottom with little, inconsistent or barely noticeable appreciation for the next several years.

If you purchased your home in 2006 vs. 2011, you will pay $333,000 more over the life of your loan for the average home sold in Rocklin.  By purchasing another home 3 years from now, most likely you’ll be in a better financial position housing wise than anyone who purchased prior to 2009 and decided to keep their home.

4)  “What will a short sale do to my credit?” – If you’re reading this, more than likely you’ve received a mailing from me saying that a notice of default has been filed against you by your lender.  If a notice of default has been filed against you, you’ve already missed many months of payments.  At this point, your credit has been degraded significantly and selling your home in a short sale may not do much more damage.

Generally, it’s common for someone with a 700 credit score to lose 150 to 200 points after a foreclosure or a short sale.   Based on what our clients are seeing, however, if someone who has gone through a short sale makes an effort to maintain their credit rating, their score will improve a bit faster than someone in the same situation who has gone through a foreclosure.

5)  “Can my lender sue me for the deficiency between what I owe and the amount they make from the short sale?” – If your lender or lenders approve your short sale, California Civil Code of Procedure 580e passed in January and an amendment July of this year say that your lender must accept what they make as payment in full and cannot come after you with a deficiency judgment.

If you’ve received a notice of default and you don’t intend on making your loan current and keeping your home, selling your home in a short sale is a better option for you.  Please call, text, email or simply fill out the form below and we’ll get back to you promptly.

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Before considering a short sale or going through foreclosure, you want to go in with all eyes wide open.   Please consult with qualified experts in the law, finances and taxation.

*Lenders have various guidelines in approving short sales.  Every lender is different.

Tags: short sale questions rocklin roseville sacramento lincoln

Have You Received A Notice of Default?

What To Expect

Receiving an NOD (notice of default) can send chills down the back of any homeowner.  The NOD is the first stage of the home foreclosure process and  if action isn’t taken it will result in the home being sold at a trustee’s sale on the courthouse steps of the county where the home is located.

If you’ve received an NOD, you’re generally more than 90 days late on your mortgage and owe upwards of $10,000 or more in back payments and fees to your lender.  Coming up with this money considering homes in our area are worth far less that what is owed makes this an even more difficult pill to swallow.

If you happen to be one of the 5% of people who succeed in getting a loan modification, these fees will be added to your mortgage which increases what you owe to pay your home off.

The fact is many homeowners are making the decision to go through the foreclosure process rather than bring their mortgage current.  It surprises me how many people choose foreclosure over selling their home through a short sale when it’s better for your credit and completely free to the homeowner.

If you do decide to go through foreclosure, here is a short list of what to expect:

None of this is a hayride a Bishop’s Pumpkin Patch, believe me.

1) After you’ve missed 3 months of payments or more, your lender can file a “Notice of Default” with the county court.  In most cases, it’s taking longer than that.  Recently, the time to file an NOD has gotten a little shorter.

2) After the notice of default has been filed, representatives from your lender will start showing up at your door asking if you’re still living there and checking on the condition of the home.  This may even happen when you’re late on  your payments and before the NOD is filed with the county.

3) Investors and bank representatives will start driving by the home, slowly, taking pictures checking on the condition of your home.  This can be very embarrassing as your neighbors are noticing “something is going on”.

4) About 90 days after the notice of default has been filed, a “Notice of Trustee Sale” will be posted on your front door notifying you that in 3 weeks or so your home will be sold to the highest bidder at a foreclosure auction on the courthouse steps.  I had a homeowner who didn’t understand the meaning of the NOD and called in a panic about receiving the “Notice of Trustee Sale”.  Talk about stress.

5) The lender will set the minimum bid at the foreclosure sale and, there is a 65% chance it will be sold to a third party investor. If it sells to an investor, you’ll most likely get a “Notice of Eviction” which states that if you’re not out of the home in 3 days, you’ll face legal action.  This is common for third party buyers.

6) If the property doesn’t sell at to a third party at the trustee sale, the bank will take it back and a Realtor representing the bank will show up at your door telling you that you’ll need to vacate the home or face legal action.  In some cases, a homeowner can get “cash for keys” and in some cases not.  It depends on the lender and you won’t know until it happens.

Going through the process of losing your home isn’t any fun.  You feel guilty, stressed and possibly ashamed for what you’ve had to go through without having any control over the process. Also, with the credit hit you’ll take, it could be 5 to 7 years before you can purchase another home.

If you sell your home in a short sale, in 2 to 4 years you can purchase another home and that’s just one of the benefits to selling your home in a short sale.  I’ll cover that in a future article.

If you’ve received a “Notice of Default” and don’t know what to do, please give us a call.  You may call, text, email or simply fill out the form below and we’ll get back to you promptly.

As we always do, we recommend that our clients call an attorney experienced in real estate about your options and a financial counselor about the ramifications of both foreclosure and short sale.

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Tags: short sales roseville rocklin lincoln sacramento

The Sad Facts Of The Loan Modifications

11/4/2011 – THIS JUST IN: The Dept. of the Treasury releases the most recent stats on this program.  Scroll down to the bottom for the new stats.

These Statistics Shock Even Me

In preparing to shoot the video above about loan modifications, I did some research about the most recent statistics.  I don’t advocate loan modifications because I’ve seen so many people get let down by their lenders trying to do the right thing.

When I saw these stats, I was shocked.  I had no idea loan modifications were so difficult to get but that said, it makes sense.

Lenders don’t want to modify loans.  They never have.

It seems they would rather you sell your home short or foreclose.  It’s just sad.

Here is what I found:

HAMP Loan Modification Statistics

As of the first quarter of 2011:

Of the 15 million homeowners underwater in the US:

1) 1.5 million have received trial loan modifications.

2) 50% of these trial loan modifications have either re-defaulted or have been denied permanent modification by their lender.

3) Of all trial loan modifications completed, only 152,289 of trial loan modifications have been made permanent.

4) This equates to only 1% of underwater homeowners benefiting from the government loan modification program.

What this means is that anyone approaching you saying they can modify your loan has a 1% chance of helping you to avoid foreclosure and a 99% chance of failing!

Adding Insult To Injury….

Keep in mind that being in the loan modification process, in most cases, will not stop foreclosure.  Bank of America, Wells Fargo and Chase have all said that they would not delay the foreclosure process if a borrower could not get this process completed prior to the foreclosure sale date.

If you happen to be one of the 1% who gets a permanent loan modification and Fannie Mae owns your mortgage, it has just been announced that Fannie Mae will score your loan modification just like a short sale on your credit report.

Where Fannie Mae goes, Freddie Mac is sure to follow. The sad fact is this:

Between the two of these government sponsored enterprises, or GSE’s, they now originate between 80% to 90% of all mortgages in the U.S.

Looking for a loan modification means that your credit will probably be damaged as much as if you had sold your home short BUT you’ll still owe more than your home is worth!  Lenders are only modifying terms of the loan, not the principal loan amounts so the loan balance doesn’t go down just the payments.

I just read these statistics to my wife and her first comment to me was “What the hell is the benefit of that?” My point exactly.

If you have received a notice of default and you’re trying to work through a loan modification with your lender, you have a 1% chance of success, you have a 1% chance of not losing your home and a 99% chance that you will lose your home to foreclosure because your lender, in all likelihood, will not delay the trustee sale to get the loan modification done.

If you’ve received a notice of default and are not pursuing a loan modification, please call, text, email or simply fill out the form below and I’ll get back to you promptly.

I know it sounds self serving but the best option if you’re in this position is to sell short.  Lenders are much more cooperative, it costs you nothing and gives you some control over your situation rather than having the bank tell you, sometimes without notifying you first, when you’ll move.

We’re here to help you.

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UPDATE:  11/4/2011

The new statistics from the Department of the Treasury just came out yesterday.  Click here for the report.  While the statistics reveal a slightly better performance, they still reflect a 95% chance of failing in the loan modification process.  Here is a summary:

1)  There are 13.5 underwater mortgages in the U.S.

2)  Of those, 720,612 have received a permanent loan modification under HAMP.

3)  This equates to only 5% of underwater borrowers being assisted by the program and leaving 95% to go through the foreclosure or short sale process if they default.

Even though these numbers are better than the results we saw in the first quarter of 2011, is it really worth going through more pain with your lender only to have a 5% chance a success?

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Tags: loan modification rocklin roseville lincoln sacramento

What Is A Notice of Default?

Not Knowing Can Make Your Life Hell

While I was playing away at Disneyland with my family, I got a call from a homeowner in Lincoln who had found my name while frantically searching online for information regarding the foreclosure process.

What happened is that the homeowner had received a “Notice of Foreclosure Sale”, the second to last stage of the foreclosure process, posted on their front door which said that their home would be sold at a foreclosure auction to the highest bidder in 3 weeks.

This came as a shock to them as they thought they would be able to stay in their home for a longer period of time like some of their friends had and also thought that they would receive a notice before the Notice of Foreclosure Sale giving them much more than 3 weeks to move.

These folks were very distressed and just needed a little more time to get their life in order to get moved.

“Did You Receive A Notice of Default?”

In speaking to them a bit more, I found that they had received a “Notice of Default” but with all of the documentation they received from the lender, to them, it was just another piece of paper.

The Notice of Default (or NOD) is the most important piece of paperwork that a homeowner can receive.

An NOD is filed by the homeowners lender through their trustee with the county court where the house is located.  It is the first step in the foreclosure process and states that you have 90 days to bring your mortgage current or in 2 or 3 weeks from the end of that period, the home will be sold at a foreclosure auction on the courthouse steps.

Can The Foreclosure Sale Be Cancelled or Postponed?

For these homeowners in Lincoln, the most pressing concern was buying more time before they would have to move.  If the property went to foreclosure sale, a couple of things can happen:

1)  The lender could take the property back.  If the lender offers the initial bid beyond where investors are willing to pay, the property will revert “back to the beneficiary”.  This means that the title will transfer back to the lender for them to sell rather than selling it at the auction.

2)  Sold to a third party. If the property is sold to a third party, they will assume control of it immediately.  In all likelihood, the homeowner will receive a “Notice of Eviction” which states that if the homeowner isn’t out of the house in 3 days, they will be subject to legal action.

3)  Auction is cancelled.  If the homeowner brings the mortgage current, the lender will cancel the sale altogether and the title will revert back to the homeowner.  In today’s market, this happens very infrequently due to homeowners owing months of payments and fees to their lender.  Additionally, with most of the homes going into foreclosure being ridiculously underwater, homeowners are just walking away.

4)  Auction is postponed.  An auction can be postponed for a variety of reasons.  Generally, being involved in the loan modification process won’t delay the foreclosure auction.  If it does, it will generally only postpone it once.  It is common for homeowners who think they are in the loan modification process to have their homes sold out from underneath them.

Being involved in the short sale process does postpone the auction IF the seller lists the property with enough time for the Realtor and their negotiator to contact the bank, get the seller’s paperwork together and get an offer in on the home.

Listing Their Home For Short Sale Saves The Day

The the homeowners in Lincoln, who only had 3 weeks before their foreclosure sale, listed their home with my negotiator, I was out of town, who was able to get everything together for them and get the foreclosure sale postponed.

This is an amazing result considering the lender said that if there wasn’t an offer in a week they would proceed with the sale of the property.  Just a little pressure but it got done and their home isn’t being auctioned off today.

In fact, they may even be able to stay in the home through the holidays as the short sale process tends to take anywhere from 60 to 120 days to work through.  Most of this time is in lender delays during the approval process.

After the initial shock and lost nights of sleep, these homeowners bought themselves a little more time before they have to move at no cost to them.  Our short sale services are 100% free to the homeowner.

They feel much better.

If you’ve received an NOD, it’s crunch time.  While we always recommend consulting with an attorney about your unique situation, if you’d just like to speak to someone about options and what a short sale entails, please call, text, email or simply fill out the form below and I’ll get back to you promptly.

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Tags: notice of default sacramento rocklin roseville lincoln

The Foreclosure “Process”

Clearing Out The Clouds

There is a lot of confusion about the foreclosure process among homeowners these days.  This is caused, in part, by a friend telling another friend how they were able to stay in their home for 1,405,945 days, mortgage payment free, before the bank foreclosed on their home.

Additionally, the media runs stories all the time about how long the foreclosure process is taking and how people are staying in their homes for periods outside what state law provides.

This is luring some into inactivity.   Then a notice of default, a court document, shows up in the mail or the auction notice is posted to the front door and homeowner is left scrambling to get it delayed.

I was speaking to a homeowner recently who had just had auction information posted on his front door telling him that his home would be sold at auction on the courthouse steps in 3 weeks if he did not remedy his situation.

He was shocked because it had only been 10 months since he had made his last payment.  His comment to me was that everyone he had known who had gone through this process had lived in their homes well over a year before the lender foreclosed.

Lesson #1 – Banks operate differently and it’s impossible to say, when you stop making your payments, how long you’ll be living in your home if your situation is not remedied.

Banks NOT Foreclosing Quickly

Under normal market conditions, after a borrower has not made a mortgage payment in 90 days, the lender files a notice of default or NOD but that isn’t happening right now.  Borrowers have, in some cases, not made a payment in over a year before the NOD is filed with the county and delivered.

The delays are generally occurring prior to the notice of default being filed.  Once it is filed, the process is started and lenders are reluctant to delay unless certain conditions exist.

The “robo signing” debacle where bank employees were rubber stamping/forging documents without first reviewing them to make sure they were accurate brought the foreclosure process to a grinding halt nationwide.

Banks Eating Themselves

When Bank of America purchased Countrywide Home Loans, they were not prepared for the onslaught of bad mortgages Countrywide produced.  B of A simply did not have the infrastructure to handle all of the delinquent loans from Countrywide and the foreclosure process drug on.

Bank of America is on record regretting the purchase of Countrywide.

This has occurred as smaller banking institutions have been eaten up by larger banks.  The larger banks weren’t prepared for the influx of bad loans and delays occurred.   Chase buying WAMU was a similar situation.

Loan Modifications

Loan modifications have also delayed the foreclosure process.  The sad fact is that lenders won’t discuss a loan modification without the borrower being late on mortgage payments.

Once a homeowner has missed a payment or two, they’ll begin getting calls from the lender wondering what’s going on and to remind the borrower that they’re late on their payments.  Homeowners explain that they are struggling to make their payments and the lender then offers to modify the terms of their mortgage to help the borrower make the payments.  This further delays the foreclosure process.

Loan modifications in their current form don’t work for 75% to 80% of homeowners.  Those who can successfully get a loan modification worked out generally re-default within a year or so.

There is only one solution to loan modifications and that is to reduce principal loan amounts.  Up to now, banks have been unwilling to do that.  Unfortunately, it’s the only real solution to this problem.

All of these reasons for delays happen, generally, before an NOD is filed although they  can also happen after.

Where The Rubber Meets The Road

When a homeowner receives the Notice of Default, the wheels of foreclosure have begun to spin.  Make no mistake, when the notice of default is received, the homeowner is on notice that in 3 months and 20 days or so, the house they are living will be sold at auction on the courthouse steps of the county where the house is located.

While delays can still happen after an NOD has been received, it’s not common.  Generally, all possible scenarios have been worked through with the homeowner and the only solution the lender sees is foreclosing, taking the property back or selling it at auction on the courthouse steps.

Possible delays to the foreclosure sale are bankruptcy, although that won’t postpone the sale for long, and listing your home with an agent in a short sale.  Getting through the loan modification process may or may not delay the auction.

Bankruptcy will delay the foreclosure process but won’t stop it.  When a homeowner declares bankruptcy, all of their assets go into “limbo” and can’t be touched nor can the borrowers be contacted by creditors.

All the lender has to do is file a motion with the bankruptcy court to remove the house from the estate of the filer and the process marches on.  This happens regularly when homeowners mistakenly think that filing for bankruptcy stops the foreclosure process.  It does not.  The lender may not auction off a home with it still included in the bankruptcy proceeding but when the home is removed from the proceeding, they can sell it immediately if all required legal steps have been taken.

Listing Your Home For Short Sale

In marketing for listings with people who have received a notice of default it surprises me how many people don’t understand the notices they are receiving.  Albeit there is a lot of paper to sift through but none the less, most people don’t understand what a Notice of Default means.

I continually hear that “we’re working through the loan modification process” or “we have that handled” just to see the lender foreclose on the home and sell it the next month.

Lenders would rather have to deal with a short sale than a foreclosure.  Foreclosures are expensive for lenders and a short sale is far less expensive.

The chances that a lender is going to postpone a foreclosure auction is slim but it does happen.

Listing your home with a Realtor is free to the homeowner and if properly timed, can extend the time spent in the home.  There is no reason not to if the homeowner isn’t planning on coming up with upwards of $25,000 to bring the mortgage current.

New state laws guarantee that the homeowner walks away with just a blemish on their credit report.  It’s a smart thing to sell short as its better for your financial situation in the short term.

Have you received a notice of default and are unsure of what to do?  Please call, text, email or simply fill out the form below and I’ll get back to you promptly.

Thanks for visiting!

Tags: short sales rockin roseville sacramento