Your Options

Understanding Your Options

First, know that you are not alone and that this is happening to many Americans across the Country, especially in states like California. Also know that this is not the end and that you will recover from this challenging time. Our goal is to help you out of this situation and move on with your life as fast and easily as possible.

Here is a brief summary of how the foreclosure process works:

Owner becomes unable to make mortgage payments.

  1. Lender files a Notice Of Default (NOD), publishes the information, and must mail it to the owner within 10 business days. Typically, the owner misses 3 or more payments before an NOD is filed. Some lenders may try to contact the owner before filing an NOD to see if the situation can be resolved.
  2. The lender must wait at least 90 DAYS before taking any further action. During this time (REDEMPTION PERIOD) the owner may avoid foreclosure by making all back payments and bring the loan current.
  3. After 90 DAYS (and sometimes longer) the lender forecloses the property and files a Notice of Trustee Sale 21 DAYS before selling the property at a Trustee Sale auction.
  4. This is still a REDEMPTION PERIOD where the owner can stop the foreclosure by bringing the loan current up until 5 DAYS before the date of the auction. At 5 DAYS or less before auction, the owner may still stop foreclosure but must now pay off the balance of the entire loan amount.
  5. Lender attempts to sell the property at the Trustee Sale auction. If the property does not sell, it is taken back by the lender as a Real Estate Owned (REO) property. At this point the lender will try to sell the property through a real estate broker. Most foreclosed properties end up becoming REO’s.
  6. Minimum time frame in California from Notice Of Default to Trustee Sale auction is 111 DAYS.

So, What Are Your Options?

  1. Bring the loan current. Most property owners are not in a position to do this if they have already missed payments.
  2. Pay off remaining loan balance. Most owners simply cannot afford to do this if they’re not able to make regular payments.
  3. Get a loan modification. You must still qualify for the loan modification and show that you can make payments.
  4. Deed in lieu of foreclosure. By doing this, owners sign Deed of their properties over to the lender. Collection for the remaining balance may still occur.
  5. Let property go to Foreclosure. This option has a very severe impact on the owner’s credit.
  6. Bankruptcy. Along with foreclosure, this option presents the most damaging consequences to the owner’s credit.
  7. Work with us to buy your property through a short sale. This is a win for you by saving your credit from the devastating damage of a foreclosure.  A short sale negotiation also places us (buyers) in a position to ask the lender for "satisfaction" of your loan and possibly release you from liability for any difference owed.

Why use us to handle your short sale?

  1. We Can Help You Prevent Foreclosure
  2. When we are successful in negotiating with the lender, we pay cash to purchase the property.
  3. You will have direct contact with our representative handling your file.
  4. Your confidentiality is safe with us – No “Foreclosure, Bank REPO or Short Sale” signs on your yard. We will not sell your information to anyone for any reason.
  5. Personal attention and care for you – You are NOT just a number to us.
  6. We have specialized knowledge and skills to help you, regardless of your situation.
  7. We have expert negotiators to work directly with your lender.
  8. Greatly reduce the impact on your credit.
  9. Eliminate your debt with your lender.
  10. Sell your property and move on with your life.
  11. ALL AT NO COST TO YOU!

This is Where We Step In To Help You

The lender will typically require the borrower to submit a considerable amount of information in order to consider the short sale.

We will handle the entire Short Sale process from beginning to end!

The information required may include, but not limited to:

  • Income statements such as W-2′s & Pay Check stubs to verify the borrower’s income.
  • Bank statements to verify the borrower’s assets.
  • Tax Returns for the last two years.
  • Profit & Loss Statements (if self employed).
  • A list of ALL repairs the house needs.
  • Hardship Letter – This letter will tell the lender the reasons why the borrower is in such financial position and will also ask to accept the short sale.
  • Fair market value of the property – depending on the lender, an appraisal may be required or may accept an opinion from a local realtor known as a Comparative Market Analysis (CMA), or Brokers Price Opinion (BPO).
  • Preliminary proceeds sheet from the sale of the property (HUD-1). This will show the proceeds of the sale of the property after the mortgage, and all other closing costs and fees are paid.
  • Purchase and Sales Agreement.

When the lender reviews all this documentation, they may or may not approve the short sale. If a short sale is not approved, the foreclosure process will resume. If a short sale is approved, we will close on the sale of the property, the lender will release a non-performing asset, and you can move on with your life relieved.