What is a Short Sale?
What is the foreclosure process?
My property is in foreclosure, now what should I do?
What are the positives and negatives associated with a Short Sale?
How can I improve my credit rating?
What is a loan workout?
How can I most inexpensively improve the value and/or desirability of my property?
What is a Short Sale?
A ‘short payoff’ is the negotiation of the transfer of ownership of real property with lender beneficiary(s) when the property is financially over-encumbered with monetary liens.
These types of sales are usually consummated for a ‘considerable discount’ thus creating equity, which can be used to pay real estate commissions as well as closing costs, delinquent property taxes, code violation fees and other monetary property liens.
The date a lien or mortgage is recorded against a property allows that lien collection precedence over liens recorded at later dates. Although, Internal Revenue Service liens always take precedence over any other lien or mortgage. The IRS will have first and foremost lien collection rights against property.
What is the foreclosure process?
There are several stages involved in loan delinquency with mortgage lenders. If payments are up to three months delinquent, the 'collections' department will be the borrowers point of contact.
For loans more than three months in arrears, a foreclosure proceeding my be instigated by the lender by their filing of a 'Notice of Default' or 'Intent to Sell'. From the date this notice is recorded against real property, there are approximately 120 days until the scheduled foreclosure auction. This auction takes place at the courthouse of the county the property is located in.
As a rule, the mortgagee (lender) generally opens the bidding at this auction with the total amount owed on the note, including loan principle, current interest and costs associated with the foreclosure to date. If this opening bid is not matched or exceeded with a cash offer to purchase by an interested third party, the real property will revert back to the lender as 'Real Estate Owned', which is called an 'REO'.
During the pre-foreclosure stage, borrowers and other interested parties can communicate with the lender's Loss Mitigation department. Loss mitigation can assist the borrower and others with offers to purchase under a short sale scenario. The bank's loss mitigation department can also assist the borrower with a loan workout if the borrower qualifies, thus saving the home from foreclosure loss.
My property is in foreclosure, now what should I do?
What do I do now that a notice of default has been filed against my home? The best thing to do now is to look at your options with a strictly business point of view.
Many people are emotionally attached to their property, which can get them into more financial difficulty. Analyze the following options and decide which might be best for your needs. Then, take quick action to give yourself time to complete the process of the chosen option.
Do Nothing – If a homeowner does nothing, they are guaranteed to lose their home at foreclosure auction. Most loan applications ask if the borrower has ever been foreclosed upon and credit reports will disclose this damaging information.
Deed in Lieu of Foreclosure – Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payments and taxes must be current. Most loan applications ask if this has ever happened.
Payoff/Refinance – Completely paying off the entire loan amount plus any default amount and fees. Usually accomplished through a refinance of the debt. New debt is normally higher interest rate and prepayment penalty because of the recent default. With this option, there should be equity in the home.
Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.
Forbearance – Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. Usually requires two payments or half of back payments.
Loan Modification – Utilizing the existing Mortgage Company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level if they qualify.
Partial Claim – A loan from the lender for a second loan to include back payments, costs and fees.
Bankruptcy – Can liquidate debt or allow more time. I can refer you to a qualified bankruptcy attorney.
Chapter 7 (Liquidation) To liquidate personal debt.
Chapter 13 (Wage Earner Plan) A plan to pay off debts in 3 – 5 years.
Chapter 11 (Business Reorganization) A business debt solution.
Sale – Homeowner may sell the home without lender approval. A short pay-off can be negotiated with the lender if what is owed is more than the property’s value.
Back to topIs it safe to order online?
A: How does a Secure Site work? In plain English here's what happens when you place an order. First, you'll notice that you enter a secure site when a padlock icon appears in the status bar of your browser (usually at the bottom). This states that all of the information passed between your computer and our computer will be encrypted.
Our computer will tell your computer how to encrypt all information passed between the two using encryption that can only be decoded on our server. Your computer will do such before sending any information onto the phone wire and out onto the Internet and eventually to our computer. When it reaches our server, it will be decoded and logged to our database for processing. Without the decoding key on our server, it is nearly impossible to decipher the encrypted data.
Back to top What is your return policy?
You may return items within 30 days of delivery for a full refund. We cannot accept returns of certain items, including:
- Any item that is returned more than 30 days after delivery.
- Any item that is not int its original condition, is damaged, or is missing parts.
Back to top Where is my order?
Delivery dates vary based on the availbility of the items you ordered. It could take up to 14 business days for the your order to arrive once your order has been shipped. If you still have further questions about your order, contact Customer Service.
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