My name is Xiao-Qing Lu, pronounced Shall-Ching, an CEO of my real estate business at Keller Williams Realty Las Vegas. The current economic conditions, rising rates of unemployment, and depressed home values in many markets point to continued increase in mortgage defaults, short sales, and sales of foreclosed and REO properties.
This letter serves as a resource for you navigating through the options available to homeowners, including refinancing, loan modification, lender workout, short sale, and doing nothing and walking away.
Additionally my team and I have put together a FREE seminar and would like to take this opportunity to personally invite you to join us. It will be held the 2nd Thursday of every month at 5:30pm. We will have Attorneys and Realtors present to answer any questions you have for FREE.
Options For Home Owners
Option 1: Loan Modification The loss mitigation department of your mortgage company may make arrangements with you to pay some of the back payments now and the balance within a certain time period. A typical example - You owe $9,000 in back payments, attorneys' fees, etc. Your mortgage company may accept $4,500 now and $750 per month for the next 6 months.. A loan modification is a permanent change to your mortgage that may lower your payments and the delinquent payments may be added to the mortgage balance. A loan modification is easier to arrange prior to the mortgage company filing a notice of default.
Option 2: Refinance Arranging new financing will depend on your income, credit report, value of your home and the amount of your equity. If you're not sure of the value of your home give me a call. I would be glad to help and off course there's no obligation. If you attempt to refinance or modify your loan, you should always have a backup plan available to you.
Option 3: Chapter 13 Bankruptcy Filing bankruptcy will postpone a property foreclosure sale date. Immediately after filing a Chapter 13 Bankruptcy, homeowner must file a repayment plan with the courts. This plan has to show that you have sufficient monthly income to pay basic living expenses. In addition your income must be sufficient to resume making monthly mortgage payments. All past due amounts are usually spread out between 24 and 60 months. A Bankruptcy attorney charges between $1,000 to $2,000.
Option 4: Short Sale Your HomeThis is probably the most underutilized option available to you. The market is very active and right now there are more buyers than there are homes for them to buy. If you have recently been served with a foreclosure lawsuit you still have enough time to sell your home which will provide you and your family the greatest opportunity for a fresh start. If you owe more than your home is worth a "short sale" may be an option. In this case I can take care of all of the paperwork, marketing your home, and negotiate with the lender on your behalf. If saving your house seems unlikely, you should call me as soon as possible. Because of the time sensitive nature of your situation, this is not a time to do it alone.
Option 5: Let Your Home Be Sold On the Courthouse Steps By far, the worst option available to you! Many people feel "I have no equity, let the bank take it", but homes that are sold on the courthouse steps typically sell between 50% and 70% of their fair market value. Moreover, if a bank suffers a loss due to the pending foreclosure action against you, they also have an option. They can file a deficiency judgment against you and pursue you for the amount of their loss.
If I can be of any assistance please do not hesitate to contact me at 702-212-2288 .