I have been helping families facing foreclosure for over 2 years now and get a lot of satisfaction from it. First and foremost, any family facing foreclosure should never pay for assistance from any so-called forecloure relief company. There are companies out there, like mine, that will "go to bat" on behalf of the homeowner FOR FREE and try to help them negotiate a forebearance, reinstatement, or short sale. There is a very complex and comprehensive process to this and it does take time and patience, usually about 6 weeks from start to finish. You will want to be sure that any foreclosure relief company you work with is willing to work with the lenders and lien holders to not just "release" the liens, but "release and resolve" them. By releasing and resolving the liens, the lender or lien holder can not come back in the future and attach another lien to the families next property purchased. Most people don't relize that lien holders can re-attach liens later, when the homeowner buys their next property.
Releasing and resolving usually means the foreclosure relief company pays several thousand more dollars to satisfy a short sale completion, but the rewards far outnumber the costs. We pride ourselves on knowing the help we provide makes a difference in the peoples lives. We helped a lady that works at our local WalMart. She had to move out of her home and into a rental as we negotiated her short sale with her lender. We were successfull in releasing and resolving all her liens and stopped her foreclosure. She avoided foreclosure and we saved her credit score from dropping nearly 300 points to only 80 points. When we see her at WalMart (a year later) she still gets teary-eyed and thanks us to death for helping her. The neat thing is, we helped her and still made nearly $10,000. She never paid a dime out of her pocket for our service.
Realtors need to be very flexible for the sellers and be willing to put the sellers needs higher than an earned commission. I am a realtor and I work with other realtors in negotiating short sales. At times, the realtor is better serving the client by releasing the listing while the short sale process moves forward. Any reputable foreclosure company will work with the listing agent and upon a successfull short sale, pay the realtor a commission, a commission split, a referal fee, or let them list it again to sell after completing a short sale negotiation.
Bottom line: Do your homework. Ask for referals. Make sure they will "release and resolve". Nevery Pay For Services, they should be FREEPlease consult your Tax Professional before proceeding with a short sale, there may be tax consequences.
The bank may issue a 1099 for the amount they discount a short sale and that may count as income on your taxes.
For more information on short sales in Southeast Idaho and Nevada or help dealing with lenders, feel free to
contact me anytime either by phone or e-mail, I'm always willing to help.
Gary Norris WinStar Realty Mindset Cashflow Solutions, INC