Many Homeowners have been struggling to decide what to do with regards to their home. I have spoken with many families who have tried countless times to try to modify their homes Trust Deed with no success. I'm sure this is not breaking news to those who are reading this. However, due to upcoming changes in the Modification process it will become even more difficult to modify your homes Trust Deed. Where will that leave the Homeowner? Banks are beginning to see that it is more beneficial financially for them to accept a Short Sale rather than Foreclose on the home. Infact, I have already begun to see fewer Foreclosures and more Short Sales in my market. That being said, when is a Modification right for the Homeowner? Do I or will I qualify for a Modification? Will the Short Sale process actually be the better option for your family? That is where the professionals at the Non-Profit H.E.L.P. (Homeownership Education Learning Program) come into the picture. Their goal is to educate the public and to help them determine what is right for them and their families! Here are some Tips that H.E.L.P. has made available to the public.
1. Try to Modify. If no avail, short sale. NEVER WALK AWAY
2. Always do your best to keep accurate and detailed records of your attempts to reach out to your lender.
This may come in handy in the future.
3. A short sale is when a lender agrees to take a lesser payoff than the existing balance of the mortgage.
4. Discuss with a CPA the tax consequences of a Short Sale or Foreclosure BEFORE they actually happen.
5. Important questions to ask your tax consultant or CPA: Was the loan recourse or non-recourse? Will the loan forgiveness take place inside BK?, and Are you insolvent at the time of the debt forgiveness?
6. Non-profit, HUD approved housing counselors can be trusted to assist you with your housing concerns and needs.
7. Beware of foreclosure scams! Ads that read. "Stop Foreclosure Now!", "We guarantee to stop your foreclosure.", and "We have special relationships within many banks that can speed up case approvals. We can save your home. Guaranteed. Free consultation!" These companies should be treated with extreme caution.
8. Don't take your Lender's word that your sale has been postponed. GET IT IN WRITING!
9. You do not have to fall behind to request a loan modification. AND YOU DO NOT HAVE TO PAY UPFRONT.
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Matthew A. Bartlett
140 S. Grand Ave., Ste. H
Glendora, CA 91741
(626) 221-8252 - Cell
(626) 498-2284 - Efax