The midway to Love in French Valley, Temecula CA

Good morning is in order, it is 6:30 am and I am working on a few files over here. 
I know, the title is a bit odd, we are halfway to to Feb, so there you have it - and if you can get on track to dealing with being upside down on your home, then I can see more love in your life too. 

I thought I would give you an update on something that has been on my mind lately. 

Being upside down on your mortgage is never fun, and doing a short sale, has been a painful experience for many people... That however, looks like it is changing, with more and more lenders now moving towards more efficient platforms for processing the short sale, this means shorter turn around times for contracts and offers and just less agony for the seller and the buyer.  In French Valley we have a number of different neighborhoods, Orchid Park, Monet, Rembrandt just to name a few, depending on who you bought your house from, you may have a different mortgage company who may or may not restrict your options when it comes to being upside down. This could spell disaster if you were trying to correct your situation in the past, with the changes, maybe less so. 

Specifically, Bank of America and Wachovia / Wells Fargo is implementing substantial changes in how they handle short sales - Bank of America being one that I used to turn down, simply due to their backwards process, is now one that I will be happy to work with. 

IF you are upside down on your mortgage, there are a number of options available for you, both from the modification point of view and the selling the property point. 

Generally, if you are in a bad place, we are facing 4 options, as follow:

• Foreclosure
• Deed in Lieu for Foreclosure
• Loan Modification
• Short Sale

So far it, it is fairly straight forward, don't worry, there are lots to get complicated with. I will attempt to explain.

First of all, a foreclosure is BAD for your credit - don' believe any thing else, you are looking at 5-7 years of not being able to get a mortgage and buy a house again. The deed in Lieu is not much better and really not an option I would recommend to anyone. 

Loan modifications are receiving a lot of hoopla in the press, the reality of them is that they very rarely modify the principal (rarely enough that as a professional I have never heard of one getting done), so we are left with interest rates... And some folks get a rate cut that will work for them, in the grand scheme of things, this may be a solution for you. If you are seriously upside down though, don't expect your payment to be cut in half, it is not likely to happen. 

Finally, the short sale, this is the only area where I see some light at the end of the tunnel, so I am going to spend a bit more time on this.

First off, there are some things you need to qualify for a short sale: 

• Hardship - something that has changed your situation so you no longer can afford to pay your mortgage. This could be a medical issue taking up money, loss of employment, job transfer, a move to a different place, etc. 
• Financial Statements - the lender will ask for a financial statement showing how much money you bring in and what goes out, this is a good exercise for anyone, it will give you a clear view of your finances. So list your incomes and list your expenses, then look at what you have left... If you don't have anything left, or it is in the red, then you can't afford your mortgage. 
• Bank Statements / Paystubs - your lender is going to ask you to show them the money, so you will have to show what you make, and what you spent it on. 
• Tax returns - some lenders will also request tax returns for the past 2 years. 

So, why all this paperwork? 
Keep in mind, we are asking your lender, to allow us to sell the property for less than the loans on it are. Essentially, we send them a nice letter and ask them to take a loss and a significant one at that. They are going to investigate that request and they want to make sure you qualify.

How are your chances for success? 
It depends, some folks have very good outlook, others less so. To give you an accurate answer, I need to know what you situation is and what type of loans you have against the property.  
This is the point where I suggest a phone call to get more information. You can call me directly at (951) 805-0773 and I will talk to you about your situation.

Keep in mind, I am working on this to help as many families as I can,  if I have knowledge that will help you - I want to share it. There is no commitment on your part, there is no pressure to do anything, if you call me, my goal is to help you understand your options.