Burlingame Real Estate - The Wilkas Group » CDPE

Are You Feeling Financially Squeezed? San Mateo,CA

Alexander Wilkas — Tue, 29 Mar 2011 05:43:16 +0000

How to Escape the Grip of Foreclosure

No one wants to be in the situation of losing their home because of a mortgage interest rate reset. The reality is that millions of Americans across the country are struggling with unaffordable mortgage payments, and more than ever lenders are motivated to work with homeowners to come to a resolution. We can help advise you of your options and show you how to create a strategy that will loosen the hold that foreclosure has on your future.

You have options

When you began struggling with your mortgage payments, you may have felt that you had no way out of the situation, but you actually have many different options. We will guide you through the process of finding which option is best for you. By discovering and acting on your options, you’ll have the leverage to escape the grip of foreclosure.

Your Foreclosure Alternatives Include:

Short Sale
Reinstatement
Forbearance or Repayment
Mortgage Modification
Rent the Property
Deed-in-Lieu
Bankruptcy
Refinance
Service members Civil Relief Act
Sell the Property

Relieve the Stress

When you owe more on your home than it’s worth, and are struggling to make payments, the pressure you feel can go through the roof! If you are in a situation where your expenses exceed your income, have a verifiable financial hardship, and no other assets to pay off the balance of your mortgage, you may qualify for a loan modification or short sale.

We can help relieve the burden of an overwhelming mortgage by showing you ways to execute a dignified solution.

Do You Qualify For A Short Sale?

Do you have…

Financial Hardship: severe illness, military service, insurance or tax increase, etc. (Ask us for a full list of acceptable hardships)
Monthly Shortfall: business failure, job loss wage reduction, divorce, etc.
Insolvency: you currently owe more money than you have, or you are about to reach that point

If you answer YES to the above questions, you may qualify.

Calm your fears!

You may be anxious about whether your lender is motivated to work out a solution with you. The reality is that lenders lose much less in a short sale or loan modification than they do in foreclosure. The cost of foreclosure may cost your lender up to 50% of the loan amount while a short sale could only cost them from 15-30%.

What Does It All Mean?:

SHORT SALE
A short sale is when the lender agrees for the property to be sold at a price lower that the mortgage balance owed.

DEED-IN-LIEU
A deed-in-lieu is when the lender receives the house deed in place of the mortgage balance, although in some cases the lender will still pursue the homeowner for the leftover mortgage balance, which is called a deficiency judgement.

A short sale or deed-in-lieu through the government’s (HAFA) Home Affordable Affordable Alternative Project prohibits the participating lender from pursuing a deficiency judgment.

SHORT SALE BENEFITS
The financial implications of short sales are always less severe that the implications of foreclosure. Your credit score, credit history, employment applications, and future chances of acquiring a loan are all benefit from completing a short sale rather than being foreclosed upon.

Our job is to facilitate cooperation and communication between you and your lender and work toward the best solution for everyone. Knowing this should help you breathe a little easier when starting this process.

Call Us Today!

We know that you are grappling with unfortunate circumstances, and dealing with all the emotions that come with it. We are trained to guide you through this process, help you to restore hope, and empower your future. You are not alone in this situation.

We Are (CHS) Certified HAFA Specialists, (CDPE) Certified Distressed Property Experts) and (SFR) Short Sales & Foreclosure Resource Specialists.

We are here to help.

Foreclosure vs. Short Sale: Homeowner Consequences

Alexander Wilkas — Thu, 01 Oct 2009 21:28:22 +0000

The current US housing market and national financial crisis has caused untold stress and heartache for many American families. Foreclosure is one of the most devastating financial challenges that a family can face and one that many times can be avoided. The options for foreclosure are many.

The following table gives you a good snapshot as to the difference between a Foreclosure and a Successful Short Sale. As a CDPE, my job is to provide accurate information so that you can make an informed decision as to the best course of action.

If you, or someone you know in San Mateo County, is about to or is experiencing financial difficulty in maintaining their home, call or e-mail me, so we can set-up an appointment to go over your options in detail.

My direct phone is: 650-504-7269, my e-mail is: alex at Wilkasgroup.com

Issue	Foreclosure	Successful Short Sale
Future Fannie Mae Loan – Primary Residence (effective May 21, 2008)	A homeowner who loses a home to Foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years.	A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 years.
Future Fannie Mae Loan – Non Primary (effective May 21, 2008)	An Investor who allows a property to go to Foreclosure is ineligible for a Fannie Mae backed investment mortgage for a period of 7 years.	An investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.
Future Loan with any Mortgage Company	On any future 1003 application, a prospective borrower will have to answer YES to question C in Section VIII of the standard 1003 that asks “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?” this will affect future rates.	There is no similar declaration or question regarding a short sale.
Credit Score	Score may be lowered anywhere from 250 to over 300 points. Typically will affect score for over 3 years.	In some cases only late payments on mortgage will show and after sale mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. In some states default can be reported as a foreclosures however the time a short sale instead of a foreclosure will affect a borrow is much less. A short sale’s affect can be a brief as 12 to 18 months.
Credit History	Foreclosure will remain as a public record on a person’s credit history for 10 years or more.	A Short Sale is not reported on a persons credit history. There is no specific reporting item for ‘short sale’. In most cases a loan is typically reported ‘paid in full, settled’ or ‘paid as negotiated’.
Security Clearances	Foreclosure is the most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony. If a client has a foreclosure and is a police officer, in the military, in the CIA, Security, or any other position that requires a security clearance in almost all cases clearance will be revoked and position will be terminated.	A Short Sale on its own does not challenge most security clearances.
Current Employment	Employers have the right and are actively checking the credit regularly of all employees who are in sensitive positions. A foreclosure in many cases is ground for immediate reassignment or termination.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Future Employment	Many employers are requiring credit checks on all job applicants. A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.	A short sale is not reported on a credit report and is therefore not a challenge to employment.
Deficiency Judgment	In 100% of foreclosures (except in those states where there is no deficiency) the bank has the right to pursue a deficiency judgment.	In some successful short sales it is possible to convince the lender to give up the right to pursuit a deficiency judgment against the homeowner.
Deficiency Judgment (amount)	In a foreclosure the home will have to go through an REO process if it does not sell at auction. In most cases this will result in a lower sales price and longer time to sale in a declining market. This will result in a higher possible deficiency judgment.	In a properly managed short sale the home is sold at a price that should be close to market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.

The 7 Most Dangerous Short Sale Myths – Part 2

Alexander Wilkas — Wed, 15 Jul 2009 19:57:28 +0000

Continuing from the article I wrote last week about the 7 Most Dangerous Short Sale Myths, here’s the last 3 for your education. I am here to assist you in helping you prevent a short sale of your property. But if it is necessary to go that route, let a CDPE expert help you.

5. Listing my Home as a Short Sale is an Embarrassment

It is understandable that you may have reservations about letting the world know that you owe more on your home that it is worth however, understand that according to recent estimates, 1 out 5 homeowners in the US is in this situation.

With 40 to 60% of the sales in the US predicted to be Short Sales or Foreclosures you are not alone.

6. The Banks Would Rather Foreclose than Bother with a Short Sale

We know you have heard this; you may have even heard it from an overzealous collection agent working for a lender. The reality is that banks do not want to foreclose on your property. Banks, investors and even the federal government have all publicly said that if a person is qualified for a Short Sale the deal needs to be considered.

The qualifications are:

A. Financial Hardship – There is a situation that is causing you to have trouble affording your mortgage.

B. Monthly Income Shortfall - You have more month than money! A lender will want to see that you cannot afford or will not be able to afford your mortgage soon.

C. Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

7. There is not Enough Time to Negotiate a Short Sale before My Foreclosure

This is a myth that probably hurts homeowners the most. Many don’t realize that foreclosure is a process and there is time.

The foreclosing party (in most cases a lender) can stall a foreclosure up to the final day of the process. These days many lenders will stall a foreclosure with as little as a phone call from you letting them know that you are trying to sell. Almost all lenders will stall a foreclosure with a legitimate sales contract, in our view there is time until the foreclosure process is complete.

If you need more information, call or e-mail me today for an appointment to see what options you have and get on the path to recovery, there are options and I can help!

Come back next week for more information on Short Sales and Distressed properties or simply subscribe to our Blog.

San Mateo County Home in Distress? Here’s Help!

Alexander Wilkas — Wed, 17 Jun 2009 07:15:40 +0000

I am Alex, the other half of the Wilkas Group, and I just earned the Prestigious Designation of CDPE. That means I am Certified by the Distressed Property Institute to help you determine what are the best options you have for your home if you are having difficulty in making your mortgage payments.

What exactly is a Home in Distress or a Short Sale in real estate, is this happening in our neighborhoods in Burlingame, Hillsborough, San Mateo or Foster City? The short answer is, YES!

I am sure that you have read and heard about the growing number of homeowners pursuing short sales in the US today. In fact, the chances are that one of your neighbors is going through one right now. Some estimates state that over 50% of the properties that close this year will be short sales or foreclosures. Most people don’t learn what a short sale is until they experience it firsthand.

In a nut shell, a short sale is a closed transaction where the mortgage holder(s) agree to accept less than the mortgage amount balance in order to close the sale. These can be very complicated transactions with far reaching ramifications.

As a CDPE, I have been specifically trained to assist buyers and sellers when they are going thru these difficult transactions. I am dedicating my training to help my clients and their friends through these difficult times. Not only are these financially challenging transactions, the stress on a family can be overwhelming.

As a community service, If you would like an informational sheet on Short Sales and exactly what they are, how to qualify and what a homeowner needs to do in order to pursue one, I would be happy to send you the information. If you or someone you know should need answers, I want to make sure at least the basics can be covered. You can reach me by clicking on the “Contact Us” button on the left side of this page.

Over the next few weeks, I will be posting additional information that may help you or someone you know understand the Distressed Property crises we are beginning to see here in San Mateo County