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Q&A
Q. What can loss mitigation do for you?
A. Loss mitigation is your representation to your lender. Our team of highly qualified mitigators , attorneys and realtors that either help a borrower avoid foreclosure by providing them with alternatives to pay down their mortgage, or negotiate a short sale in cases of homeowner inequity. (See short sale defined below)
Q. What is a short sale?
A. short sale is an agreement made with the seller and a bank that allows the seller to sell the property for less than the mortgage balance. To begin a short sale click here ::;;;;button to need to sell now
Q. What is a foreclosure?
A .Home foreclosure is a process by which a lender regains a property which they have financed. Typically, this is because the borrower or homeowner is behind on house payments and is unable to catch up, often due to circumstances outside of his or her control. When the lender forecloses on the homeowner, the homeowner must move out of the house, therefore, losing all possession of the property and jeopardizing any possible equity that the homeowner may have in the home. There is a legal time frame, which varies from state to state, which determines how long the foreclosure process can take
Q. What is a deficiency judgment?
A. A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan.
Q. What is deed in lieu of title?
A. A Deed in Lieu is when the property is deeded back to the lender with the approval of the borrower prior to foreclosure. This process may still leave a negative impact on the borrower's credit.
Q. How long does the short sale process take?
A. Typical cases are completed within one to three months. If you have a foreclosure sale date approaching we can complete it sooner. In the past we have found buyers quickly and have used our relationship with the banks to push back your foreclosure sale date.
Q. When should I begin the short sale process?
A. You should begin this process as soon as possible. Depending on the circumstances, we can many times delay the foreclosure process We can even work with you if you are in bankruptcy. To begin a short sale click here:::::::::(button)to need to sell
Q. Do I have any liability when doing a short sale?
A. In a foreclosure, your house is sold at an auction which typically causes the difference of the total amount you owe and the foreclosure sale price to be much higher. This means you have a higher potential tax liability. Additionally the bank may come after you for a deficiency judgment. According to IRS code, a bank may issue a 1099 to you for the difference in what you sell your property for and what is owned. In other words the IRS considers this income. Fortunately there are new tax forgiveness laws which have been put into place to help eliminate most or all of the tax. For IRS details on short sales and loan modifications click here:;:::::: www.IRS.gov Publication 908
Q. How late in the pre-foreclosure process can you start a short sale?
A.Each state will be different, Try to allow a window of at least 30 days for the mortgage Company to approve the short sale offer.
Q. What are the key components of a short sale>
A.The borrowers hardship documentation, the Broker Price Opinion and a cost benefit analysis that convinces the lender to act now.
Q. I have a FHA home loan can I still qualify for a short sale?
A.Yes as long as the property is owner occupied.
Q. What effect does a bankruptcy filling have on a short sale daeal?
A.You can submit the short sale package buy you have to get a release from the bankruptcy court to get permission to sell the property. This has to be done through the bankruptcy trustee. Inform the trustee that you are paying off the lender but that you are paying them short. As long as the homeowner is working with the court the house can be left in the bankruptcy. It will give you time to negotiate a short sale with the lender and find a buyer before seeking to release or get a “stay of relief” for the property form the bankruptcy.