The M's of Real Estate ... Nevada Real Estate Today!
There are many M's in real estate today. The Big Three M's are familiar, yet mysterious to many. The
first you'll typically encounter is Modification ("Mod"). A Loan Modification is a permanent change in one or more terms of a loan. Your Lender will contact you when your payments stop arriving, and they'll suggest that you apply for a Loan Modification. Loan Mods let the loan be reinstated from foreclosure status, and adjusts the payment so the borrower can afford it. Even though you may be contacted by your Lender to initiate the process it has a very low success rate.
Loan Mods have many different factors as they are implemented. The Lender can: inspect the property, verify physical conditions which adversely impact the Borrower's ability to support the modified payment, waive all accrued late fees, reduce the rate to the current market rate, re-amortize the total amount due over a 360 month period, etc. If they can make it work, and it works for you, go for it and continue to enjoy your home.
If you can't effect a Modification, your next step after you quit making payments will likely be Mediation. Mediation is a give-and-take process in which the Lender and the Borrower work to reach a mutually acceptable resolution. Once the Homeowner requests Mediation and pays the $200 fee there are duties that both parties are responsible for completing. The Lender must bring the original documentation of the loan, the most current and appropriate appraisal of the property, an estimate of the short sale value of the home, and the method the Lender uses to determine the eligibility of a Homeowner for a Loan Modification.
The Mediator is there to help the parties work toward a reasonable resolution to a mutual problem. The Mediator is not a judge who decides a case and cannot give legal advice. There are ramifications if either party fails to appear. More mediation information can be obtained on the Nevada Foreclosure Mediation webpage at www.nevadajudiciary.us.
Mitigation - Loss mitigation is used to describe the process when a division within a bank, or a firm, handles the process of negotiation between Homeowner and the Lender to mitigate the loss to the bank. Mitigation works to negotiate terms for the Homeowner that prevent foreclosure such as loan modification, short refinance, deed in lieu of foreclosure, etc. All of the options serve to stabilize the risk of loss to the Lender by preventing the losses that would be incurred as a result of a foreclosure action.
Our Advice: In addition to understanding the Big 3, be aware of the many other M's of Real Estate: Mindset - essential for everyone to have a good one, Agent, Buyer, Seller and Lender; Money - it's what is causing all the consternation; Miracles - They happen whether Buying or Selling, think the good thoughts and you can experience one; Mystery - Many of the systems, policies, procedures and behavior of Lenders today are shrouded in Mystery, they defy logical reasoning; Morals - what makes it difficult for most to face the reality of today's market, their personal moral compass; Market- what's really going on around town.
Be mindful of the many matters modifying your mindset and creating malaise as you meander the path of the default resolution morass. All will be magnificent if you expect it to be.
When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com
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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.net or www.CarsonValleyLand.com
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