If your upside down or behind in payments on your Placer or Sacramento County home or investment property I can help you lower the payments with the HARP 2.0 government refinance and avoid foreclosure with loan modification and HAFA short sales.
Enter the process informed.
If you owe more on your home or investment property than it's worth and can no longer afford the payments, you've got options and this site provides fast and easy access to all sorts of free tools, information, and resources, including HUD-certified counselors who will assist you in exploring your options for free.
Whether you seek to modify your loan in order to keep your property or wish to speak with a short sale advisor about avoiding foreclosure by selling your home for less than is owed, you'll find information here that will help you immensely.
What's A Short Sale?
A short sale occurs when the lender agrees to take less than the full amount required to pay off existing loans in full because the outstanding loan balance is greater than the proceeds realized from the sale of the property.
This sounds simple enough and is the definition most agents will give you. The problem is in the details. The terms of the approval are almost always dictated by the lender. Most sellers and many agents assume any approval is a "good approval", which is often not the case.
If you're considering a real estate short sale there are things you need to know before speaking to your lender. Consulting with a M.A.R.S. compliant, licensed professional versed in short sales and the foreclosure process is a must.
Why Would My Lender Accept Less Than Is Owed?
Knowing why and how much your lender does not want to foreclose on your home is crucial to the negotiating process. It's oftentimes much more expensive for the lender to modify your loan than it is to simply foreclose on you and sell it, or accept a short offer and pay all the associated sales costs.
Of course your lender would prefer that you stay in your home and continue making payments but selling it and getting the "bad asset" off their books is frequently their next favorite choice. Many lenders will negotiate short sale terms quite favorable to you, oftentimes allowing you to walk away for free and with zero delinquency judgments.
A successful no cost short sale with zero deficiency judgments looming in your future can be possible if you work with an expert team to get it done.
Will I Qualify For A Short Sale?
Has Your Home's Market Value Dropped?
Whether you're doing a loan modification or short sale, hard comparable sales will be used to substantiate that your property is worth less than the unpaid balance owed the lender. I provide a comprehensive property value report designed to determine your properties 30, 60 and 90 day sales price value - the same info your lender will want. Get a FREE Home Valuation Report.
Is Your Mortgage Currently In Default or Are You Concerned That It Soon Will Be?
It used to be that lenders would not even consider a loan modification or short sale if your payments were current, but not anymore. Realizing that other factors contribute to a potential default, many lenders are eager to head off future problems at the pass.
Many lenders no longer require that you be late on your payments however you must be able to convince them with your hardship letter and financial records that you're concerned about your ability to continue making payments.
Have You Fallen on Hard Times?
Have you experienced a job loss, cut back in work hours, divorce, death or any other challenge that is hampering your ability to make your monthly payments? You must be able to prove financial hardship. If you've answered yes to all of these questions, you're probably an ideal candidate for a real estate short sale.
HARP 2.0 - Fed. Gov't Home Affordable Refinance Program.
If you're not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through MHA's Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.
You may be eligible for HARP if you meet all of the following criteria:
- The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
- The current loan-to-value (LTV) ratio must be greater than 80%.
- The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for HARP.
Deed-In-Lieu of Foreclosure
Generally, if the borrower makes a good faith effort to short sell the property and is ultimately not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer - provided the title is free and clear of mortgages, liens, unpaid HOA fees or other encumbrances.
The HAFA Program streamlines both of these options to make it easier for a homeowner to work with their servicer. Under the program, a homeowner can receive up to $3,000 in assistance to help with relocation costs.
You must be advised however that mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer. If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to a HUD-approved housing counselor for free.
If you would like free assistance understanding ALL your options please give me a call 1.888.519.0280