If you find yourself in a no-win situation regarding your mortgage, it can be helpful to speak with your lender and ask about loan modifications that can be made in the short term.  You can ask about the short sale process, too, and see if that may be a viable option for you.  A short sale is when your lender agrees to accept a lower price than is owed on your property as payment in full.  There is a lot of paperwork that accompanies this type of sale and it is helpful to use a real estate agent that has short sale experience with this type of transaction.  In fact, some real estate agents like us, and some home buyers, specialize in just this type of sale and can be a great help to you!

If you want to stay in your home, rather than sell, programs such as the Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP) , or the Home Affordable Foreclosure Alternative (HAFA)  offered by Freddie Mac may all be options.  Fannie Mae and your individual lender may have other programs that can assist you as well.  Please click here to view a variety of tools on how to avoid foreclosure.  Remember that you do have options, if you are willing and able to face them.  It will take time to explore them but don’t give up!

If you would like to talk to a certified expert on short sales and foreclosures, Alex Wilkas is just the person to call.  Our number is at the top of this page.  Call us so we can walk you through the options you have before it’s too late and you lose your largest life investment, the home you and your family are living in.  San Mateo County is one of a handful of counties in California that hasn’t seen a great deal of foreclosures but short sales have been plentiful.  Don’t be embarrassed to talk to us about this.  We are here to help you.

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.

If you are one of the multitude of homeowners sitting with this kind of mortgage you have a couple of choices.  First, refinance it immediately.  Second, if you are unable to do so, get your home ready for resale and get it on the market this spring.  Yes, it will be under water, and yes you will need to go through the process of applying for a loan modification with your lender.  If you are denied, as most appear to be, ask for a short sale and find a Realtor with suitable experience and training to help you.  We are CDPE trained and SFR trained.  These are the Cadillac of certifications for short sales.  Do not wait to sell, get ready to do it this spring because there will be much competition for short sales.

Another consideration for you.  If you sell you home in a short sale, you can buy a new one within 90 days using a conforming FHA loan.  This means you will be in a home around $900,000 and there are many to select from in our area.  You may have to swallow your pride in reducing your home size and location but at least you can still own a home without the tax ramifications of a foreclosure.

Do you want more information on how to do this?  We’re here to answer your questions so go here for more help.

]]> http://wilkasgroup.com/its-crystal-ball-time-whats-the-market-doing-in-the-san-mateo-ca-area/feed/ 0 http://wilkasgroup.com/san-mateo-county-are-you-wondering-why-you-cant-get-your-loan-modified/ http://wilkasgroup.com/san-mateo-county-are-you-wondering-why-you-cant-get-your-loan-modified/#comments Thu, 14 Jan 2010 22:15:09 +0000 lenorewilkas http://wilkasgroup.com/?p=2295

San Mateo County residents who are under water today have an additional problem to content with because banks aren’t being forthcoming with us.  Are you wondering why you can’t get your loan modified?  Are you wondering why every time you call they can’t find your file?  What  about the voices of the people you’re talking with, do they have strong accents making it hard for you to sometimes understand them?  There’s a reason this is happening and it’s not to help you, but to help the bottom line of your lender. These people you’re trying to talk with don’t live and work in the US, they live and work off shore, mainly in India, but also in some other countries, too.  The worst offender doing this is Bank of America but they’re not alone as most of the major banks are doing the same thing. They are doing this to save money but according to year end reports, almost all banks made record profits last year and off-shoring added to their profit line.

The only bank NOT doing this is Wells Fargo, who incidentally only uses US citizens and doesn’t consider off-shoring as an option.  Thank you Wells Fargo.

Right now the bankers are sitting and testifying in Washington about their obscene bonuses and this should become a part of that discussion.  These banks aren’t out to help you, they’re out to help their bottom line.  If you don’t like this, call Jackie Speier’s office if you live in her district, or your own Congressional Representative where you live.  Then call your US Senators and complain loud and clear that this must stop.

I believe the only way to stop it is to write a law prohibiting off-shoring for all banks. No matter what you are told about privacy laws,  they don’t matter outside the continental United States boarders.  You are, as they say, up a creek without a paddle should your information – think social security numbers – get lifted.   Our laws only count within the continental US border and not in another country.  This won’t stop unless we make it known.  Will you help me with this?

When Buying in a Buyer’s Market here’s What to watch out for.

So you are a buyer in a buyers market – what an excellent time to be in the market to purchase property!  Inventory is available and sellers are looking for you, however there are still items you need to watch out for to protect yourself and to make the most of your home-buying investment.

Just because it is on the market doesn’t mean it is for sale!

This can be a difficult concept for many buyers to understand but should be one you are familiar with.  While foreclosures and short sales are a great way to purchase property at below market value, the reality is that unless a qualified agent is handling these properties the chances of closing go down considerably.

When looking to purchase a short sale or foreclosure you should discuss the following with your agent:

Multiple Contracts – When you are purchasing a home and put it ‘under contract’ you should be the only buyer pursuing that property.  If the listing agent will be submitting your contract as one of many, to the lender or even worse signing multiple contracts, you are in essence entering into a blind auction for real estate.  Unless you are an experienced investor, this is likely a situation you will be uncomfortable in.  Think twice about whether you wish to be in a bidding war when you hear this is happening.

Inspection Allowances – Regardless of what type of property you decide to purchase you need to make certain you have the right to have a professional fully review the property and report to you their findings.  This is critical.

Submit a Strong Contract – treat a short sale or an REO like and other contracts and put your absolute best offer forward.  If you truly want to purchase the property in question make your offer count.  The days of low-ball offers are over.

Pre-Qualification is More Important than Ever

In today’s market any seller will want to see that you are a strong buyer and have been fully pre-qualified with financing.  You will want to meet with at least one (if not two) mortgage brokers or lenders to get pre-qualified.  You will want to make certain you are comfortable with:

• The Mortgage Program
• Your Monthly Payment
• Any Projected Payment Increases
• Payment or Interest Rate Adjustments and Time Periods
• Laying out a financial strategy prior to finding a home allows you to confidently target homes in your price range.

Hire an Educated Experienced Agent

A short sale or foreclosure purchase is not a typical real estate transaction.  They can be difficult and come with their own specific challenges however the right agent can help guide you through  this process and help you purchase the property you are looking for.  You need to have a well trained agent such as a CDPE (Certified Distress Property Expert) who has taken hours and hours of specialized training to assist you, and you need to look no further than here, as I offer this designation and background for you.  My contact information is to the right of this post and you can reach me by phone or email.  I’m here to help you through the purchase of any distressed property you see out there.

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.

Don’t let one of these dangerous myths land you and your family in Foreclosure

A short sale can be an excellent solution for a homeowner who owes more on their home than what it is worth and has to sell. Unfortunately a number of myths about short sales have developed and is important you understand the reality of this process if this is a solution that you feel meets your current needs.

1. Short sales are Impossible and Never Get Approved

Nothing could be further from the truth!

Are short sales more difficult? YES

Do you need to learn a new process? YES

Are they impossible? NO, NO, NO

I am a Certified Distressed Property Expert (CDPE) who has undergone extensive training in helping homeowners in distress and processing short sales. The CDPE membership organization nationally is made up of agents who receive thousands of short sale approvals on a monthly basis – don’t think for one minute this is an impossible process. While there are no guarantees in any transaction, more and more short sales are being approved monthly.

2. Banks are Not Accepting Short Sales; They are Waiting on a Bailout

Really? You may have heard this; the reality is that banks (and the government) are trying to do anything they can, within reason, to avoid foreclosing on property. To think that they would deny a Short Sane in hopes that some future legislation will pass and pay them for their loss is preposterous.

The reality is that more banks are aggressively pursuing Short Sales and agent (like me) who understand how to process them. Freddie Mac recently hosted a national webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale”

3. You Must be Behind in on your Mortgage in Order to Negotiate a Short Sale

While it is true that initially some lenders wanted you to be in default (missed a payment) before they were willing to consider a short sale – this trend has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency.

If you meet their three requirements and are in a position where you will soon not be able to afford your mortgage, act now! Don’t wait until the countdown clock to foreclosure has started and you have even less time left.

4. Buyers are Not Interested in Short Sales and Avoid Them

This is a myth that potential sellers here all the time – thankfully the reality is that today it is not. In fact many agents are getting calls from buyers who say “I only want to look at Foreclosures and Short Sales”

Short Sales and Foreclosures have become synonymous – not with issues – but with GOOD DEALS. International buyers specifically are interested in these properties. If you list with an educated CDPE agent such as me, you have a very good chance of seeing a contract on your property, soon.

Come back next week for Myths 5, 6 and 7 or subscribe to our Blog

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

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