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With the sudden and vast changes in the loan
industry and housing market, many homeowners have found themselves
in ackward financial positions. It is important to remember
that there are options available to you. The most
common solutions to a financial condition
which results from your real estate are short sales, loan
modifications/workouts and refinances. Although your
lender is under no obligation to work with you to resolve your
situation, it usually benefits both yourself and your lender.
Therefore, there is often an incentive for your lender to work out a
solution with you. Each situation is unique and our office
offers free initial consultations to determine which course of
action will be in your best interest. A brief overview
of short sales and loan modifications follows:
Short Sale
The easiest analogy to understand a short sale is to
think of your car. If you are upside-down on your car, you owe
more than the car can be sold for. The same principle applies
to real estate. If you cannot sell your house at a value that
will allow you to pay off the loan and associated closing costs
then you are upside-down. As a result, you would need to bring
money to the closing. However, if you are in a severe
financial situation and do not have access to funds necessary to
effectuate your closing, a short sale may be an alternative to
foreclosure. In a short sale, our office negotiates with your
lender(s) to accept less than they are owed which will allow you to
sell your property.
Loan Modifications/Workout
Many have been affected by adjustable rate mortgages and
increasing property taxes. If you wish to remain at your
current house but have fallen behind in payments and can no
longer afford the payment, a loan modification may suit your
best interests. A modification may involve a change in your
interest rate or a restructuring of your payments.
Our Firm's Results
The firm has substantial experience
with foreclosures and has worked with many banks in the
past which allows us to successfully negotiate solutions on our
client's behalf. Recent results include the
following:
Negotiated
payoff of 10% of the outstanding debt on a second
mortgage;
Negotiated the reduction of nine (9) mechanic's
liens recorded against a single property;
Negotiated short sale
on investment property on behalf of client with multiple properties;
Negotiated payoff of 74% of the outstanding debt on first
mortgage.
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