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I AM HERE FOR YOU
Over 7 out of 10
Homeowners in distress
go into foreclosure without
You are not alone
There are many reasons why homeowners are unable to
pay their mortgages and every situation is unique.
My goal is to help you determine your best solution,
whether it is to stay in your home or sell.
I can negotiate with your lender to help you avoid
foreclosure and the ensuing damage to your credit
Foreclosure is a legal and
professional proceeding instigated
by a lending institution.
As a real estate professional,
I can provide you with the
ANSWERS you need to avoid
I have the resources to help
First of all, do not panic. I
understand how frightening this is.
Now is the time to explore your
If you missed your property
payment, local taxes, or condo
and homeowner associations you
may need to seek professional
It’s time to explore your options and you
may need to take immediate action.
You can not make your house
payment due to a
financial or situation setback.
Your mortgage payments are more
than you can
Reasons for a Pending Foreclosure
Job loss/or job demotion
Sudden illness or medical emergency
Death in the family
Loss of second income
Excessive debt obligations
Inability to afford an increase on your adjustable
interest rate loan
Major home maintenance expense
Reasons to Avoid Foreclosure
Your Credit scores will drop to under 500 points.
Damaging to your future credit history
In regards to government insured loans, you are
held back for 5 to 7 years vs. 2 years on a short
Foreclosure will remain as a public record on a
person’s credit history for 10 years or more.
Most of your loan and even job applications have
questions regarding credit history and is easily
Has long lasting damaging effects on your credit
history even after it’s removed.
Reasons to Avoid Foreclosure
Many employers, renters, and
insurance companies run credit
Any one holding security
clearances or holding jobs in
the military, law, and
government positions are in
jeopardy. In some cases, your
clearance may be revoked and
your position terminated.
Your taxes with a foreclosure
may be higher. It is advised to
seek the council of a tax
professional for details.
The repayment of all past due payments, late fees,
penalties and costs due on an obligation secured by a
deed of trust, or mortgage with the effect of reinstating
the normal terms of the loan.
Resolution is viable up to the day of a bank sale.
Will offer you the quickest method for resolving a
Reinstatement – How It Works
Homeowner missed 5 payments on a $2000 a month loan.
5 Months of missed Payments @ $2000/month $10,000
Late Fees $500
Legal Fees $2000
Processing Fee $500
Total Reinstatement $13,000
Repayment – The Most Common
Many lenders can provide terms of 12 months allowance for you to
repay your past due amount. You are required to make your regular
monthly payment plus 1/12 of the past due amount each month for
12 consecutive months.
The process involves lenders approval and a statement verifying that
your financial hardship was temporary.
The disadvantage of this plan is that you are paying a higher monthly
payment at a time of financial hardship and your terms remain the
Sell the Property
If you have equity,
you can of course sell and
stop a foreclosure.
Do you have a rising Adjustable Rate
loan that is sky high now?
This can be a good option even if your
credit score has been damaged due to
missed mortgage payments. You can
refinance your existing first home loan
to lower your monthly payment or get
enough cash back to pay off past due
amounts and other debts.
You can spend valuable time trying to qualify for a loan
and not qualify due to your credit score and financial
You may not qualify for cash back.
You may have penalties for refinancing and many times,
these can be very steep.
Your new loan will probably have higher interest rates
resulting in an even higher monthly payment.
In many cases, this turns out as a short term solution
rather than a permanent avoidance.
If you can make your regular payment, but you can't
catch up with the past-due amount, Loan Modification is
a common option.
This can be accomplished by increasing you loan balance
or extending your loan for a longer period of time.
This will change your current loan and requires lender
Deed-In-Lieu of Foreclosure
When you are in default, but can not qualify for any other Loss
mitigation options, you can sign the house back over to the lender
company. This will avoid public notice of a foreclosure, and has
less of an impact on your credit scores.
This so called "friendly foreclosure“ is still a foreclosure and has the
same effect on your credit and ability to buy another home in the
There are many things that must be done first and you are well
advised to seek the opinion from your lawyer, especially in regards
If you are experiencing a temporary hardship, you may be eligible
for this type of help.
You may be allowed to reduce or suspend payments for a short
period of time, agreeing to pay back the past due when you know
you will have enough money to bring the loan current on a specific
date. The money might come from an employment bonus,
investments, insurance settlement, or tax refund.
A legal alternative that allows the borrower to clear any debt
obligations by restructuring the payment terms. A bankruptcy stops
the foreclosure process until the bankruptcy process is completed
or the court allows the lender to resume the foreclosure.
Unfortunately, many homeowners choose this option and make all the
required payments, only to be hit with hundreds or thousands of
dollars in additional fees once they emerge from bankruptcy.
Unable to meet these additional burdens find themselves facing
foreclosure right after bankruptcy.
This allows you once in default to sell your home
and use the net sale proceeds to satisfy the
mortgage debt even though these proceeds are
less than the amount owed.
Also known as a real estate short pay-off or a
pre-foreclosure workout, a short sale is an
agreement with a lender to accept less than
the amount owed by a borrower through the
sale of the property to a buyer.
The best time to begin the
short sale process
Right now, short sale situations are very time sensitive
and negotiations can take time. The sooner we can
begin negotiating with your lender, the greater the
chances of a successful resolution. You do not have to
wait for the lender to send you a notice of default or
initiate a formal foreclosure proceeding.
Short Sale Definition
A homeowner is ‘short’ when:
When a borrower owes an amount on his property that,
when combined with closing costs and commission, is
higher than current market value.
A Short Sale Occurs When:
A negotiation is entered with the homeowner’s mortgage
company or companies to accept less than the full balance
of the loan at closing. A buyer closes on the property and
the property is ‘sold short’.
What is a Short Sale
An agreement with you, during the beginning stages of a
foreclosure, and your lender, allowing the home to sell for
less than your outstanding loan balance. The mortgage
holder would accept less than the loan amount in order to
avoid a foreclosure. The "deficiency" is the difference
between the amount owed and what the bank collects at the
Short sales happens when a you owe more on your house
than you can sell it for (upside down). You can start
negotiation with your lender to sell the house for less than is
owed. You close on the property and the property is sold
Qualifying Factors for a Short Sale
You must have a financial hardship
The home is worth less than the unpaid balance due the
lender. This can include prepayment penalties.
You have no assets.
The mortgage is in or near default status. In the past
lenders would not even consider a short sale if the
payments were current, but that is no longer the case.
What I Charge for a Short Sale
Unlike other loss mitigation companies, I provide
my services at no cost to you. My fees are
never paid by you. I am only compensated if we
successfully negotiate a short sale.
What to Consider
a) It takes a buyer with an offer to purchase your home
to qualify for a short sale. So even if you meet all the
other criteria, you are still dependant on a buyer.
b) You are also dependent on the lender accepting the
c) You should consult with a real estate or tax lawyer to
determine your tax consequences.
How Long will a Short Sale Take to Complete
Every short sale is different. It will usually take about one
to four months. The timing depends on how fast we can
begin negotiating with your lender. If you are facing
foreclosure or have an auction date, the process can be
expedited and we may even have the lender postpone
the auction date.
1. Start now, do not wait or ignore your situation. It is not
uncommon for homeowners to just accept what they see
as the inevitable, and let foreclosure start. Don’t let it
happen – the damage to your credit will follow you for
2. Do not sell your home at a huge discount. Unless a
foreclosure sale is less than 45 days away, you have
time. Typically, if someone is pushing you hard to get
you to sell your property to them, it’s probably because
the deal is very slanted in their favor.
3. Do not authorize a buyer to deal directly with your
lender. A buyer probably has one intention and that is
to negotiate a low, probably too low a price, with your
lender. I can help, and will cost you nothing. I have
negotiated for many homeowners like you and won. The
lender wins too. They do not want to take your property
and that’s why they will negotiate to get the deal done.
4. Absolutely DO NOT ever deed your property to a third
party without absolute confirmation your loan has been
Four Main Steps to Completing a Short Sale
1. I will work with you to get all of the required
documentation that your lender will require from us to
send to them. Together, we will gather all the listing
paperwork and schedule an appointment to see your
home and prepare it to be put on the market.
2. I will aggressively market your home and work with
potential buyers for a successful sale and closing.
Four Main Steps to Completing a Short Sale
3. This step is presenting the offer to the bank. This is the tough part
and takes skill and experience. The actual negotiation and approval
process can take as little as 2 weeks or as much as 4 months.
Averages range from 30-90 days from the beginning process to the
short sale approval. Communication between us and the lender is
key and many times involves daily phone calls and faxes back and
forth. The process is not quick in most cases, but with the right
team working on your behalf, you can be at rest knowing that
everything is being handled diligently and with care and discretion.
4. This last step is the period of time between approval from the
bank and the buyer closing on the home. We prepare all of
the buyers that we work with for a timely closing.
The process and your involvement
I have specific documentation and requirements for a
successful short sale. This includes, but may not be
inclusive to the following.
Authorization to Release Information form
Short Sale Disclosure
Homeowners Documentation Checklist
Homeowners Financial Worksheet
Keep your property presentation ready
Be open to all communication with the
mortgage company and me.
Worried You Could
Now you have
TIME IS OF THE
Certified Short Sale Specialist