HOW WE CAN HELP YOU

There are several alternatives if you find yourself in foreclosure.  Whether your intention is to keep your house or get rid of it, the next few paragraphs will give you a much better understanding of your options in today’s rapidly increasing foreclosure marketplace. Below you will also find some common misunderstandings about the foreclosure process and some things to beware of.

Do you want to keep your home?

Realty Connection always gives homeowners in foreclosure any and all information which can assist a homeowner in keeping their house if that is their desire. These days most financial institutions have become much more lenient towards homeowners in foreclosure. The bailout has had an effect, and your lender will most likely be willing to speak with you about possible options available.

Loan Modification - Depending on the lender, you have the possibility of modifying the terms of your mortgage. As long as you qualify, lenders are lowering rates and modifying other terms to lower your payment to a manageable level.  If you had an adjustable mortgage they may be able to turn it into a fixed rate loan.    What to do: Now days it is best for you to call the bank yourself and ask to speak to a representative in loss mitigation. We have so many homeowners who say, “I called them 6 months ago and they said they could not do anything” but now they are finding that their bank may have some options available.  Pitfalls: The major pitfall your have to be aware of is that only about 20-25% of loan modifications are successful. While this number is low, please realize you still have a chance. We always inform our clients of this statistic up front in order to give you a realistic idea of your chances of success. BEWARE: Many people will claim to be loan modification specialists, however too  many of them are scams. Often they do nothing.  Sad to say we have heard that  many lawyers are guilty of this.  Most banks now prefer to work with you directly. If you are really uncomfortable speaking with bank representatives we would be happy to help you with that.

Loan Write-Down - While not as common as a loan modification, there are a few banks allowing owners to stay in their homes and actually "writing down" the amount owed to the bank. Typically this is done with higher-end properties which have a significant difference between the loan balance and the market value of the property. This happens only in limited circumstances; however if your desire is to keep your home, it is always worth a shot to ask your lender if they provide this service.

Litigation – you can hire a real estate attorney and defend the foreclosure lawsuit based on various defenses (i.e. usurious lending practices). The only issue is that since foreclosure defense and the tactics used is a relatively new specialization.  The merit of these defenses and the outcome is uncertain.  While this can buy you additional time in your house, there is no guarantee that it will fix your problem permanently. Pitfalls: In most cases you have to pay the attorney monthly, in many cases for upwards of 1-2 years before your case is tried in court, and there is no guarantee that the legal defenses will have any effect on discharging your mortgage.

Bankruptcy – Bankruptcy is an alternative many homeowners are considering. When a bankruptcy is filed with the court, an "automatic stay" is temporarily placed on all assets preventing creditors from coming after those assets.  However you may find that the damage to your credit from a short-sale is far less than the damage caused by a bankruptcy.  While Realty Connection cannot give legal advice, we can recommend that you find a good bankruptcy attorney in your area if you are considering this route.  The laws have changed in the past few years, and it is not as easy as it once was. Your attorney will be able to discuss your possible avenues. Pitfalls: Bankruptcy does not mean you get to keep your house without making any payments. The "automatic stay" is only effective so long as the court wants it to be in place. At any time the court can grant your lender's motion for "relief from the automatic stay." Once the court grants that motion the foreclosure against your home can proceed to conclusion.

 Do you just want to get rid of the house so that your credit can begin it's mending process?

Here are three options if you do not want to keep your house.

Deed-in-Lieu of Foreclosure – In this situation the bank accepts the deed back to your property.  Pitfalls: In most cases the bank will not consider a Deed-in-Lieu unless you have had your home on the market and have been unsuccessful in selling it. The bank wants you (more specifically your Realtor) to show that every effort has been made to sell the home, as the bank does not want the additional burden and cost of simply taking back every home back and trying to sell it themselves.  Simply placing a "for sale" sign on the property does NOT qualify as trying to sell the home, it must be on the MLS, and must be advertised aggressively. Please view our marketing plan to see how we market all our listings.

Short Sale  – This is where you sell your house for less than you currently owe on it.  It involves detailed paperwork with your lender(s) that we are well accustomed to handling for you.  Your lender pays for any repairs and commissions and closing costs.   Sometimes the lender requests the homeowner to sign a promissory note (an IOU) for the difference or a portion of the difference between what the house sold for and what the loan balance currently is.   Realty Connection is committed to fighting for our sellers and getting it in writing that the bank will complete the sale as a full and final settlement of debt.   We are familiar with the process of working with banks in order to make a short sale transaction run quickly and smoothly. 

Quick Investor Sale - Sometimes a homeowner just needs to sell really fast.  We can help you with

a quick investor sale if that is your desire.

Contact us today - 951-332-9780 - for a free consultation and so that we may help you to determine the best course of action for your needs.