Know your options and rights during a foreclosure/short
Patrick McCarran has a 100% bank approval rate for our Short Sales. Patrick, has aligned himself with the FACT Group, a team of Real Estate professionals that share the same core values, passion, and dedication to assist homeowners. Together they have the knowledge and training necessary to assess all possible foreclosure alternatives and provide homeowners with the best options. Patrick has experience working in direct negotiations with a variety of lending institutions and has yielded a high success rate in closing short sales. He can give you the expertise necessary to lessen the impact on your credit, relieve the uncertainty, help you take control, and most of all, help you and your family in these difficult times. Education is the primary goal to ensure that the homeowner has the right tools to get started to the path to recovery.
YOUR BANK MAY PAY YOU TO COMPLETE A SHORT SALE.
KNOW YOUR OPTIONS! If you are struggling to make ends meet and have negative equity in your home it is important that you know what options are available to you. There are a number of different courses of action that may me made to help you mitigate your financial situation. These include bankruptcy, modification, short sale and foreclosure.
Most lenders are now offering modifications to homeowners in distress. These are often more of a temporary solution as the banks seldom offer principal reductions. Usually the bank will offer to lower you payment over a fixed period of time. The problem with these terms is that without a principle reduction you are not building equity. In today’s market where a homes value may be upside down or have a negative equity of over 70% current appreciation projections show it would take years just to break even on the balance of the loan. This makes your situation like a long term lease.
Foreclosure or simply walking away from the home is another option. There are of course pros and cons to this approach. The legal repercussions can vary depending on each individual’s situation. California is a non-recourse state and has what is called a one action rule which basically states that if your homes is foreclosed and sold by the trustee that is the only recourse for the lender. Which means, generally speaking you can walk away with little or no legal consequence. These rules can apply to primary homes and second or investment property.
However if you have a second loan it could very well be a recourse loan which means the lender can, and most likely will pursue other assets and wages. A short sale will prevent this. If you are considering a default I highly suggest you look into a short sale an option. Choosing a short sale will put you back in control of your life and when you need to move. Because a short sale is perceived as a proactive choice by the borrower the credit compiling agencies tend to score it higher than a foreclosure or a deed-in-lieu.
I would always advise my clients to seek advice regarding bankruptcy protection as well. Many homeowners have incurred a substantial amount of debt in this economy and a bankruptcy may be a good option to help you afford to keep your home by eliminating burdensome debt. Although legally you may not need to pursue a short sale after the bankruptcy, in regard to credit building it is still a good option.
Let me be clear, I am not advocating to anyone to ignore their financial obligations. What I am saying is that you should look at your own situation and make the decision that is best for YOU and your family and not the bank. It is very important that you should be informed about your options and possible consequences.
Loan modification, Short Sale or Strategic Default. Which one is right for you?
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