How Close Is Too Close??? When can I stop the Foreclosure!

When is it too close to stop a foreclosure on my property. The Trustee sale on your property can be halted up to the very day of the sale. A foreclosure is also called a Trustee Sale, a Sheriffs Sale, or going to auction. If you hire a professional Realtor they can call and request time to short sell and the mortgage company can stop the trustee sale with a phone call. A more solid way to ensure the sale is halted is to file a bankruptcy. You should get advise on the time it takes from a bankruptcy lawyer but I have seen a sale stopped as close to 24 hours before the sale from an emergency filing of the bankruptcy and stay.



Do not worry about the time get a professional on the job as soon as possible, get the information you need, then you'll be able to make decisions, your feeling of not knowing what to do usually comes from not having the facts, it is the unknown that creates the indecision.

Loan Modification and Short Sales- The Latest News

The Real Estate Market is changing with the Federal Bail out Funds and the presidential election promises. Lenders, are open to accept a short sale and now becoming just as fluid to accepting your application to lower your monthly payments by changing the terms of your current loan. This is not a complicated process but there are many "fast & easy money" chasers out there wanting to charge you a few thousand dollars to process this application for you. Don't get caught spending the money for something you can do all by yourself. If you are behind in payments you can use every penny right now. The lenders have been lowering interest rates to lower your payment and now are, with government money, willing to lower your principal balance/what you owe on the loan, to what your home is worth in today's market!

You can call your mortgage company(s) and ask for the "Home Retention Department" also called "Loss Mitigation" if all else fails tell the person who answered the phone you want to apply for a loan modification they should know who to transfer your call to. The mortgage company can email, fax or mail you what they need. First apply for the loan modification because you very well may be able to stay in your home, which most home owners prefer to do. If the payment can not be brought down low enough for you, then the mortgage company will approve you for a short sale. A short sale allows you to sell your home for less than what is owed. It shows on your credit as "Paid As Agreed" and will effect your credit for 3-4 years rather than 10 years on your credit which a foreclosure lasts for. In this light a short sale looks very positive!

Basically each lender is going to ask for the same documentation. It is important to mail them a COMPLETE PACKAGE containing all items they asked for to ensure they can process your application in a timely manor. You will need the following for each wage earner who is on the deed to your home:

1. Your hardship letter: explain why you are having difficulty making your mortgage payments. (email me for sample hardship letters if you have trouble writing one).
2. A Financial Worksheet: a listing of your income after taxes and what the source of the income is. Remember to include any court collected child support and/or spousal payments. Then on this financial worksheet list your monthly expenses utilities,car,car insurance,health insurance, any monthly revolving debt. Add up what you have coming in and what you have going out and lastly show if you have any left over income to make any house payment. DO NOT INCLUDE YOU CURRENT HOUSE PAYMENT IN THESE CALCULATIONS.
3. Credit and appraisal approval letter: I( your name here), owner of (your address here), give my permission for (your mortgage company(S) here), to pull a current credit report on (you name here) and to appraise the subject property and I will grant access both inside and outside of the home for the appraiser or valuation agent.Then provide this information: full name, social security number, date of birth, current address , your previous address, include your zip code. This information should be provided for everyone on the deed of your home.
4. Copies for your three most current paycheck stubs, if self employed complete copies of the past 2 years personal and corporate tax returns.
5. Copies of the past 3 years W2 forms or 1099's. If retired or on disability copies of your social security,pension, all monthly income proof of your income and where it came from.
6. Copies of your 3 most current bank statements. Checking, savings, retirement accounts, investment accounts, ALL bank accounts.
7. Copy of your most recent mortgage statement (s) if there is a second mortgage include it too.
8. Copies of the recorded mortgage note (promissory note) on your home. This will be with your closing documents received from the title company when you purchased your home.
9. Copies of your monthly bills.
10. A tip: Put titles on each set of documentation, Hardship letter, monthly bills, financial statement, etc...This is because every ones documentation looks differently and the over worked processors will not know what something is and stop working on your package and it may sit on someones desk awaiting full documentation until you call and discover that your file has been over looked
11. Tip 2: Include cell, work and home phone, fax, email and the best times to reach you. Also include the time zone you are in so they will call at the right time too.

Mail this information to your first and second mortgage companies to the address they gave you attention to the department they instructed you to.

Give the package 2 weeks to arrive and become processed into the system and call to make sure it was received. At this time arrange for a representative who you may call direct for updates on the process get an email, a fax ,and a direct phone number.Call every week until the request has been approved. The hardest part is the holding on and trying to get your phone call taken. Be patient this takes time. All mortgage companies are under staffed and loaded with applications the process on the best case will take 6 weeks to complete.

After getting a loan modification offer review it with an attorney, a real estate broker someone who really knows what it means. If you decide the payments still will be too high or if on the chance the lender does not approve your loan modification then ask for permission to short sell your home. If you short sell you must get a qualified Realtor who has years of short sale experience and an excellent track record of getting short sales closed.

I have 25 years Short sale Experience with a 99% success record I can help you sell short, OR find you an experienced agent in your locale. Barbazhp@gmail.com OR direct 602-329-9802