Behind In Mortgage?
FALLING BEHIND ON YOUR MORTGAGE?
LENDERS GIVING YOU A BAD TIME?
EMERGENCY MORTGAGE RELIEF CAN HELP!
Emergency Mortgage Relief has been formed to provide the Central Valley with answers and effective solutions that help families and individuals who have found themselves victims of the current real estate market. It is our sincere desire to provide much needed information to those who find themselves in the position of facing foreclosure. You have options, We have solutions!
To speak to one of our Relief Advisors, call our 24/7 pre-recorded message and leave your name, phone number and the property address that you are struggeling with at:
1-800-388-9960 ext 9112
You Have Options
If you have fallen behind on your mortgage you will receive information – and lots of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them. We are here to help you make the right decisions for you and your family. We are experienced Real Estate and Financial Consultants. We have helped hundreds of families just like you! Our service is absolutely FREE to you! Why are we willing to assist you? Because we know that if we are successful, you will tell your friends and family about us! It's just that simple.
Don't Do It!
Don’t do anything until you understand your options.
Here are some of your options:
- Sell the property at fair market value and put your equity in your bank account – where it belongs. We can help here and we will be sure you get your equity.
- If you owe more than your home is worth, you can look at negotiating a discounted payoff with your mortgage company. We can negotiate with your mortgage company on your behalf to get approved for a Short Sale. We have done hundreds of these and here’s the best part:
The lender nearly always pays all the sales costs including title and escrow fees, commissions and most repairs.
- Refinance the property and pay off existing loans.
We have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.
- Negotiate a Forbearance Agreement with your mortgage company.
For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.
First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.
Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.
- Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.
Frequently Asked Questions - Short Sales
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A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the loan. The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees and repair costs. You get your home sold, the loan(s) paid off and you avoid foreclosure. |
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Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If you are faced with a hardship that makes it likely you will be unable to meet your obligation on your mortgage, your lender would prefer to settle the matter with you as opposed to taking the property through foreclosure. As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure. Bottom line, your lender wants to work with you. |
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Nothing. It’s true, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, and even most repair expenses are paid by the lender as part of the Short Sale approval. We will include the *following clause in the contract. "Seller’s agreement to sell is subject to approval by existing lender of a Short Sale at no cost to Seller. Seller shall not be required to deposit funds to close escrow." Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure. |
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It’s easy. If you would like to get prequalified for a Short Sale, just fill out the form below and submit. If you would prefer to discuss it on the phone, or set an appointment call . There is no charge to you to get started. It is as simple as contacting us and we will get to work. If you later decide you don't want to do a short sale, that is okay too. |
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Deeding your property to someone without paying off the loan is nearly always a bad idea. In the first place, the lender still considers you primarily responsible for payment on the loan. If loan payments do not get paid, or if the lender ultimately forecloses, this will show on your credit. Secondly, when you deed your property to someone else, you give up control of the property. Along with the deed goes the ability to control the property. Do not deed your property to someone without paying off the loan unless you have consulted with an attorney. |
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To some extent, that will depend upon the mortgage company considering the Short Sale request. Generally, so long as the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the Short Sale request will be processed by the Loss Mitigation Department. A big key to getting Loss Mitigation to accept a hardship is to submit a strong hardship letter. The hardship letter sets the tone for the entire file. Below you will find a list of “hardships” that are common and frequently accepted by mortgage lenders.
If I am not behind in payments yet, will my lender accept a short sale? |
The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent. Other lenders will not accept the file until the loan is delinquent. We can put your Short Sale file together within a couple days and submit it for approval. (Remember, there is no charge for this). That is the best way to determine if your lender will accept a file for approval on a loan that is current. |
WHY WOULD MY LENDER AGREE TO A SHORT SALE?There are actually several reasons why a mortgage company would approve a Short Sale payoff, including the following;
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CAN ANYONE HELP ME WITH MY SHORT SALE?In a word, no. That is why it is critical to work with someone that has extensive experience at getting Short Sales approved. From the presentation of the Short Sale package to the lender to working with the lenders Loss Mitigations Department, we know how to keep the file moving towards approval. The first step is to get pre-qualified for a Short Sale. There is no charge for this, and it’s easy. Just call us at (209) 357-5504 or fill out the form below. |
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Yes. We can work with both lenders (many times the same lender hold the 1st and the 2nd loans) to put together a Short Sale transaction. Even if the value of your home is below the balance of the 1st mortgage, we can normally get the two lenders to cooperate. In the end, neither lender wants to own another home through foreclosure. |
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Absolutely. In fact, lenders are more motivated to do a Short Sale on a property that needs work than on a property that doesn’t. The lender knows the risk of loss goes up when they foreclose on a property that needs lots of work. Aside from expense of completing the work, lenders are simply not set up to get the work done. They are in the loan business, not the fix- it business. |
The big key here is to avoid foreclosure. By nearly any measure, a foreclosure is the most damaging event your credit status can encounter - worse than bankruptcy. In the course of getting your short sale approved you may miss your mortgage payments, and these will show on your credit.By avoiding foreclosure, you will likely be able to resume normal borrowing (car loans, credit cards, consumer goods and such) relatively quickly. |
You may be able to keep your home. You need to convince your mortgage company of two things:
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A Forbearance Agreement is a written agreement with your mortgage company in which you arrange to keep your home. The agreement will normally include two primary elements:
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In California a foreclosure can be completed in less than six months from the time the loan becomes delinquent. The mortgage company can record a Notice of Default, the first step in the foreclosure process as soon as the loan is two months delinquent. Typically, the first indication a homeowner gets that a foreclosure has commenced is notification of the Notice of Default. Once the Notice of Default has been recorded, the foreclosure can be completed in less than four months. |
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The best way to stop the foreclosure is to bring the loan current. To do that you would need to pay all delinquent amounts as well as the costs and fees incurred by the mortgage company to file and process the foreclosure. Many borrowers are not able to bring the loan current and are forced to look at other alternatives to avoid foreclosure. Even if you are well into the foreclosure process, most lenders are willing to grant you additional time to remedy the situation if they believe it is reasonably likely they can avoid acquiring your property through foreclosure. Among the alternatives the lender might be receptive to:
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There are several things you can do to avoid Foreclosure. It is usually best to let your lender know, right away, that you intend to solve the problem so they won’t have to get the property in Foreclosure. Here are some of your options:
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In order for your lender to recover losses incurred on your mortgage as a result of Foreclosure, the lender would need to do a Judicial Foreclosure. While, theoretically a lender could pursue a deficiency judgment through a Judicial Foreclosure on some mortgages, it almost never happens in California. The lender is normally left with the proceeds generated at the Trustee’s Sale or from a sale after acquiring the property at the Trustee’s Sale. This is another reason why lenders would prefer to work with the homeowner to solve the problem and avoid getting the property through foreclosure. |
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Deeding your property to a third party does not eliminate your obligations related to the loan. Unless the mortgage is paid off when you deed the property, you will almost certainly remain as the party primarily responsible for the repayment of the loan. If the lender eventually forecloses, it will be on your credit record. If you deed your property to a third party you also give up control of the property. It is nearly always a bad idea to simply deed your property to a third party.
Do not deed your property to someone without paying off the loan unless you have consulted with an attorney. |
How Damaging is a Foreclosure?By almost any measure a completed Foreclosure is the most damaging event your credit status can encounter – worse than bankruptcy. A Foreclosure on your credit record will negatively impact your ability to borrow money for years. For most people, it is well worth the time and effort to solve the problem before the Foreclosure is done. |
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If a Notice of Default has been recorded against your property it means your lender has started the formal Foreclosure process. In California, a borrower must be two months delinquent before a lender can commence a Foreclosure action by recording a Notice of Default. A borrower has over three months from the recording of the Notice of Default to work something out with their lender and avoid the completion of the Foreclosure. Once the Notice of Default has been recorded, it is important to act to avoid losing the property and having a foreclosure on your record. |
Should I request a Forebearance?Yes, you can and you should look at a Forbearance Agreement as an option to avoid Foreclosure. FORBEARANCE AGREEMENT – An agreement between a mortgage company and a borrower in which the borrower promises to stay current on the mortgage going forward and agrees to a repayment plan for delinquent payments and costs and fees associated with the foreclosure action. A Forbearance Agreement is a tool that allows the borrower to keep the property. The lender will expect you to show that the delinquency was due to circumstances out of your control (injury, illness, job loss) and that the financial difficulties have been corrected. |
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Unfortunately there are quite a few people that might try and take advantage of your temporary misfortune. These people will try and convince you that they can provide a quick and easy solution to your mortgage problem. As a general rule, if it seems too good to be true, it usually is. Here are a few examples of the scams you could encounter:
It is almost always illegal in the state of California for anyone, besides an attorney, to collect a fee as payment for making arrangements with your lender. Your lender will work with you directly if you want to make arrangements to make up past payments and keep your property. This would normally involve a Forbearance Agreement. (Please note: Some Lending Institutions are beggining to charge an Administration Fee of approximately $300.) |
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While the Short Sale itself does not stop the Foreclosure, lenders normally work with a homeowner and delay the Foreclosure if necessary, if they receive a legitimate Short Sale proposal. The key here is to submit a complete, well organized, Short Sale proposal. The lender does not want your property, and would rather resolve the situation before the Foreclosure is complete. |
Do Lenders Prefer A Short Sale?Absolutely, In fact, your lender would rather you sell the property than allow the Foreclosure to continue. Your lender does not want to take your property through Foreclosure. Even if you have no equity in the property, the lender wants to find a solution. This is precisely why lenders agree to a Short Sale and accept a discounted payoff to fully satisfy the loan. In a Short Sale, the lender in nearly all cases pays all the closing costs – including title fees, escrow fees and the real estate commission. |
Should I Continue To Talk With My Lender?It is best that you not avoid calls or letters from your mortgage company, particularly if a foreclosure is pending. Your mortgage company does not want to take your property through foreclosure. The mortgage company would rather look for options to avoid foreclosure. When speaking with your mortgage company, be honest about your circumstances and listen for them to possibly suggest options. The mortgage company knows the best way for them to limit losses on a delinquent mortgage is to work with the homeowner. Be sure to keep notes of all conversations you have with the mortgage compoany including dates and times of calls, the name of the representative with whom you spoke and the details of the conversation. |
California Foreclosure Timeline
- 2 months - Current owner must be at least two months behind on the mortgage (1st or 2nd) before the lender can record a Notice of Default (NOD) So, when you become two months delinquent on your mortgage the lender will probably begin the foreclosure process by directing the Trustee to record an NOD.
Notice of Default Period
- 3 months – The NOD period lasts a minimum of three months. During this time the borrower will be contacted by the lender in an effort to resolve the situation. At the end of the three months the lender will likely direct the trustee to publish a notice of Trustee Sale.
Trustee Sale Period
- 20 days – The actual Trustee’s Sale can occur no sooner than 20 days after the Notice of Trustee’s Sale is posted on the property, published in a publication of general circulation and mailed to the borrower.
Minimum period from initial default until property has been foreclosed upon and title transferred to lender or bidder at auction is five months and 20 days*Trustee's Deed
- If the property goes to sale on the date published by the Trustee, the high bidder action, or the foreclosing lien holder gain title to the property with a Trustee's Deed.
Delinquency Period
*calculated from the end of the period for which the last full mortgage payment was made by borrower and accepted by lender.
NOTES:
- Borrower has the right to reinstate the loan up to five (5) days prior to the Trustee Sale date.
- The Internal Revenue Service (IRS) has up to 120 days after the Foreclosure sale to redeem the property.
- Upon the issuance of a Trustee Deed junior mortgages are generally extinguished.
- If a junior lean holder is foreclosing, the lender or acquirer through auctions receives a Trustee Deed and holds title subject to the senior lien(s).
What About My Credit?
One of the primary benefits of a successful Short Sale is avoiding the credit damage of a foreclosure. The damage to your credit done by a foreclosure lives on for years – at least seven years.
Your credit will recover much quicker from the credit dings of a few late mortgage payments, if you keep your other accounts current. So, consider allocating your funds to meet basic necessities (food, utilities, household needs, auto expenses and such) first. Beyond paying for necessities plan to pay other bill to keep as many accounts current as possible.
Keep “necessary” Accounts Current
When deciding which credit bills to pay review the terms of your credit accounts. If you are using a credit card to temporarily pay for necessities, you want to be sure to not jeopardize the availability of that account.
A Short Sale may be just one part of a larger effort to get through a tough period. We want to help make it possible for your credit to recover quickly. We need to avoid foreclosure – and that we can help with.
What We Do...and What We Don’t Do
Getting your Short Sale approved – that is our number one goal. Along the way we will take the time to help you understand the process.
It is our job to prepare you for the Short Sale process, if you feel that is your best option. We will keep you informed along the way so you know what progress is being made.
Sometimes we have to ask tough questions. In order to help you select the solution that is best for you, we will need information. We will not, however, lose sight of who we are serving.
Four Things You Should Never Do
If you fall behind on your mortgage
Number One
Absolutely Do Not ever deed your property to a third party without absolute confirmation your loan has been paid off.
Note: if you believe this option is best for you, please consult with an attorney – not the buyer’s attorney – before completing the transaction.
If you deed your property to a third party, that party then controls the property. The new owner can rent the property (and keep the rent), attempt to sell the property to make a profit, move into the property or use the property in other ways.
What the new owner might not do is make mortgage payments, and that could become a big problem for you.
Just because you no longer own the property does not mean you are no longer responsible for the mortgage loan obligations. The lender made the loan to you. And until it is paid off you will be primarily responsible for the mortgage obligation.
If you give up control of the property and the new owner does not pay on the loan, the damage to your credit could be catastrophic.
Number Two
Do Not sell your home at a huge discount.
Unless the actual foreclosure sale is less than 45 days away, you have time to explore options. Take a day or two and make a few phone calls. As a general rule, if someone is pushing you hard to get you to sell your property to them, it’s probably because the deal they are proposing is very favorable – to them.
If you have equity in your home, it belongs to you. Let’s see if we can get it to you.
For a Free, no obligation assessment, just fill out the form below to submit a request.
Note: No one will call you on the phone unless you specifically request it.
Number Three
Do Not authorize a prospective buyer to deal directly with your lender.
The buyer has one goal and one goal only, and that is to negotiate a low, probably very low, price with your lender. The buyer will ask your lender to accept a discounted payoff.
The negotiations could go on over an extended period of time, and if the transaction does not work out the buyer may elect not to buy your property. It could leave you with very little time to resolve the situation and avoid foreclosure. Further, you have no control over the information that goes to your lender or the accuracy thereof. It is entirely possible that the buyer could handle the negotiation and presentation of information in a way that makes it very difficult for you to resolve your loan situation later.
If, however, you believe that your best option is to allow the buyer to work directly with your lender, make certain you consult with a real estate professional and/or an attorney before signing a contract. If you are going to do a Short Sale get representation from a real professional. It costs you nothing – the lender pays the fees. Someone should be looking out for you.
We can help, and it costs you nothing. We have fought for homeowners like you many times – and won. The lender wins also. They do not want to take your property through foreclosure. That’s why they will negotiate to get the deal done.
Number Four
Do Not do nothing.
A surprising number of people just accept what they see as the inevitable, and let foreclosure run its course. Don’t let it happen – the damage to your credit will follow you for years.
Take a little time to explore potential options. You do not want a foreclosure on your credit record. It will hamper your ability to get a consumer loan or a car loan for at least a few years, and it will be very difficult to get another mortgage for a very long time.
At all times, your interests come first – you have my word on it.
What We Do
- Listen to you, so we understand how to help
- Provide guidance, so you can move in the right direction quickly
- Put together a great Short Sale file, so your lender will want to work with us
- At all times PUT YOUR INTERESTS FIRST!
- If you chose to have us prepare your documents requesting Modification of Terms, there is a $499 Fee due upon completion of documents prior to submission.
- Our Services are FREE to you if you decide doing a Short Sale is best for you!
What We Don’t Do
- We don’t try and buy your property to take your equity
- We don’t recommend that you deed your property to a third party and give up control of your home
- We won’t lie to a lender to save a loan
Summary:
1. Call your Mortgage Company(s) and let them know your situation.
2. If you are trying to keep your house, we offer a small fee program.
3. Consult a Bankruptcy Attorney to assist in keeping the house
4. Call us to Short Sale your house and work with your Lender
5. DO NOTHING AND GET FORECLOSED ON AND SUFFER 7-10 YEARS!
So don't let time get away from you! Fill out the form now and get your FREE consultation today!
visit: www.shortselling4free.com
