DON’T RUN FROM FORECLOSURE!
IT COULD BE THE WORST MISTAKE YOU EVER MAKE!
This may be hard to believe, but lenders are caught in a web of their own making, and taking back your property is a net LOSS for them, not a net gain. Bottom line, your lender doesn’t want your house. No matter how many problems it may be causing you, it’s just another problem that they don’t want. But I might. My company helps people with problem properties, exclusively. I may be able to help you keep your house, I may be able to help sell it, or I might be able to buy it outright.
If you have a problem property you are probably wondering what to do.
- Should you try to work things out with the bank?
- Do you list with a real estate agent?
- Do you try to refinance?
- Will you have to file bankruptcy?
- Should you sell all of your possessions and move to Central America? Just Kidding
I’m not trying to be funny — I know how confusing it can be to sort through the pressures and anxiety that a problem property can cause. Many people in this situation become so overwhelmed, that they don’t do anything. They’re too afraid to make the wrong decision — too afraid to try something that only puts them right back where they began.
They also don’t know what to believe. Real estate is in the news daily, and most of the news is negative. It seems as if no one has a handle on the housing market these days. Real estate agents will always say times are good; meanwhile the mortgage broker down the street is closing his shop along with the local title company.
Remember the dot-com boom in the 90s? People were leaving their jobs to stay at home and become day traders — what happened? I often wondered how they thought that they were going to outperform those stock traders that had spent their entire careers watching the markets! Well, they didn’t.
The housing market is similar. It’s changing so fast that it’s hard for people to stay up on the latest changes on the local, state and federal levels. The result is that there’s a lot of misinformation out there. Deciphering it can be confusing, costly, and time consuming. You don’t want to make any mistakes.
As you are looking for a solution, there are several mistakes that you will especially want to avoid:
1) Don’t spend thousands of dollars to have an attorney file bankruptcy based on the assumption that it will make the foreclosure disappear.
Many debtors will spend a lot of money for an attorney to file a Chapter 13 bankruptcy — which is really a payment plan — only to lose the house. In essence you are paying the attorney, instead of the lender. Before acting, know how much the process will cost and what your new increased monthly payment will be after you file. Also know that if you miss one payment, your Ch.13 will be dismissed and you will need to file Ch.7 — and pay more fees to an attorney. When your Ch.7 is finally discharged, you won’t owe a cent, but the bank will still want you to sell the house. If you don’t, your credit report will still show a foreclosure, and be ruined for years. (This is not legal advice.)
2) Don’t spend every last penny by agreeing to a forbearance plan (payment-plan) that the lender told you to do.
Increasing your monthly payments isn’t going to solve your problem. A lender will increase your monthly payment and call it a forbearance plan, all the while knowing that more than 85% of borrower’s will not make the second payment. The lender just wants every last penny before they begin foreclosure proceedings. Make sure you know what your budget is and whether you can afford it before agreeing to forbearance. Also, make sure to have the lender fax you in writing what your payments will be.
3) Don’t sign a listing agreement with a real estate agent, unless that agent has experience and understands the foreclosure process.
Houses that are over-leveraged have a tough time being sold, especially in a flat housing market. This puts real estate agents in a bind because the market will not support the asking price, which also covers their commission. It puts you in a bind because listing agreements usually prevent the homeowner from finding other alternatives — like finding their own buyer — even if the real estate agent is not performing. Luckily for you our agents are specially trained to work within our system and they already have a buyer lined up-US!
4) Don’t sign a Deed in Lieu of Foreclosure with your lender.
The lender will ask you to do this and lead you to believe that it’s in your best interests. It’s not. Your public record will clearly read DEED IN LIEU, which translates to a voluntary foreclosure. Banks promote this method because it saves them money, but it does nothing to preserve your credit for the future.
Each problem property has its own unique advantages and disadvantages when it comes to discovering a solution. Some will only stall the foreclosure, forcing you to pay thousands of dollars for a house that you will ultimately lose. Other solutions may allow you to stay in the house, but cost you more money each month than you actually make in three.
Here’s a better solution — a way out:
It’s one that the banks pray more people would discover: it can stop the foreclosure, save the banks money, and allow you a fresh start in a new home. You’ll have to leave your problem property, but you’ll be able to move into a better situation.
It’s not perfect. If what you are looking for is a quick expensive Band-Aid to fix things temporarily, then you need to call another company.
But if you would like to avoid the foreclosure from damaging your credit score for the next seven to ten years; if you would like to escape having to make payments that you can’t afford; if you want to avoid the humiliation of the public record and create a positive experience, then you are invited to call me.
Our ability to come in and attempt to stop the foreclosure is the best way to solve your problem. We know how to negotiate with lenders: it’s what we do every day. We understand their quirks and their protocols. Best of all, over the years we’ve developed good relationships with many of them.
And the cost to you . . . ABOSLUTLETY NOTHING
At no point in time during the process will money be coming out of your pocket to pay us for our service.
When you decide to take control of the situation and give us a shot, we will give you our 100 % NO OUT OF POCKET EXPENSE GUARANTEE.
I know this may sound too good to be true, but we will not charge you any money out of pocket: ever. We will take the financial risk to cover all up-front expenses in dealing with the lender, and lien holders (including the IRS), attorneys, real estate agents and any possible marketing or rehab costs.
We will put our money where our mouth is to make the deal work. We profit when we sell the house in the end. If we lose any money we invest in helping you that will be OUR problem: you will be able to move on into a better situation.
But in order to begin, you need to make a commitment to yourself to be proactive, take control and confront your problem property.
The longer you wait, the more difficult it will be to resolve.
If you want to learn more or if you have any questions,
please call my office right away OR VISIT http://www.stopmyfloridaforeclosure.com/
Or attend our weekly webinar by registering here.
3 Ways To Sell Your Problem Property Now For Top Dollar In Today’s Market http://www.daytonashortsalehomes.com/
We’ll gather a few facts, do a little research and discuss if we think that we’re in a position to help.
All information you provide will be held confidential.
I’ll then call you back and share what I’ve discovered. Fair enough?
If it’s after hours, or you get my voicemail, please leave a message and we’ll return the call.
And forget about Central America.
President- Real Estate Liquidators Group LLC
WHAT IS A SHORT SALE?
QUITE SIMPLY A SHORT SALE IS
DAMAGE CONTROL FOR THE HOMEOWNER
When the owner of a property owes more than what a property is worth and they have for whatever reason, fallen behind on their payments. The bank holding the mortgage may agree to accept a settlement offer (aka a short sale) in exchange for releasing its lien on the property.
If a short sale offer limits the banks losses and gets a non-performing asset off their books, it will generally be accepted. This is Loss Mitigation and banks have dedicated entire departments for the single purpose of negotiating short sales and limiting their losses.
Can you answer yes to any of the following questions?
- DO YOU OWE MORE THAN WHAT YOUR HOUSE IS WORTH?
- HAVE YOU FALLEN BEHIND ON YOUR PAYMENTS?
- HAVE YOU BEEN SERVED A “NOTICE OF DEFAULT”?
- ARE YOU POSSIBLY FACING A FORECLOSURE JUDGEMENT?
- WOULD YOU LIKE TO SALVAGE YOUR CREDIT AND WALK AWAY OWEING NOTHING?
THEN A SHORT SALE MAY BE JUST WHAT YOU ARE LOOKING FOR!
THE BANKS CRITERIA FOR A SHORT SALE
The homeowner has a legitimate hardship, as defined by the Bank. The problem(s) that are causing the borrower to be unable to continue making the mortgage payments are not temporary (e.g. just behind a month because of overspending). Poor financial decisions are generally not considered hardship, and full financial disclosure will be required to determine if the borrower has assets that can be applied to the debt.
- There must be little or no equity in the property. Obviously, if there were enough equity in the house to sell on the open market and use the proceeds to pay the Bank in full, this would already have been done.
- The Bank must receive 100% of the proceeds from the sale. The Bank is already taking a huge loss and as a condition for considering a settlement, they will not allow the homeowner to profit from the sale. All proceeds must be applied towards servicing the debt. Accepting any payment outside the sale (without disclosing it to the bank) in order to circumvent this condition would be defrauding the bank.
- The Short Sale Process doesn’t actually start until the bank receives a valid offer from a qualified buyer with a “Proof of Funds” or a “Pre-Qualification Letter” from their lender.
Is your loan owned by a GSE Like Fannie Mae or Freddie Mac?
- Check to see if your loan is owned by Freddie Mac.
- Check to see if your loan is owned by Fannie Mae.
- FHFA Announces New Standard Short Sale Guidelines for Fannie Mae and Freddie Mac Effective Dec 2012;
THE TIME TO ACT IS NOW!
In Pre-Foreclosures, Time is your Enemy!
Every day we are contacted by homeowners who waited too long to get their short sale started, abandoned their property or they left their property sitting on the market for several months looking for a buyer. Many times they call us after the foreclosure judgment has been rendered and an auction date has already been set. Sadly, it is too late for us to help them.
The typical short sale process can take anywhere from 30 days to several months depending on the bank. It’s not a quick sale but it is a quick close and there are a number of things that can go wrong along the way. Impatient buyers, bad appraisals, inexperienced closing agents and weak buyer financing that falls apart at the last minute just to name a few. The foreclosure process in Florida will typically take about 6 months on average, leaving a small window of opportunity to complete a short sale. The longer you wait the smaller that window becomes.
Don’t worry, if you work with us you’ll have a talented team of experts that are highly experienced in the short sale process. We have proprietary systems in place that will streamline the process. We’ll get your short sale started immediately and completed in the least amount of time possible.
WHO WE ARE AND WHAT WE DO
First of all let me explain who we are not. We are not agents looking for a listing. We are not a short-sale servicing firm or short sale negotiation company who charges a fee for our services, in fact we do not charge you the seller anything for our services. We are a DIRECT BUYER of short sale properties with a proprietary system in place that has a history of getting results for struggling homeowners so that they can get a fresh new start in life. We negotiate on behalf of the seller at no charge, acquire and sell the properties we purchase for our portfolio.
We are Investors who have assembled a Team of Real Estate Industry Experts with many years of combined experience conducting real estate transactions and most specifically “Short Sales”. Each member of our “Short Sale Transaction Team” is specifically focused on their particular area of expertise. Our Brokers, Agents, Full Time Negotiators, Title Companies and Closing Agents are all working diligently with only one goal in mind.
Getting Your Short Sale Completed as Quickly and Efficiently as Possible!
Each member of our Short Sale Transaction Team is highly motivated to getting your transaction completed because they are only compensated when we reach a settlement with your lender that is satisfactory to you and the transaction reaches a successful close.
So what is all of this going to cost you?
It is very important for you to understand, “We are not in the business of profiting from you!” Our profit comes from assisting the bank in limiting their losses. We work directly with Asset Managers and Loss Mitigators every day to achieve this. Their only goal is to save the Bank money by liquidating non-performing assets before they become a liability (REO or Bank Owned Property)!
Lenders are finally beginning to realize that a short sale is a better alternative to pursuing foreclosure and if we can show the lender that performing a short sale and accepting our offer will save them money generally it will be accepted.
We are in the business of negotiating settlements on the non-performing assets of banks in an effort to help them liquidate bad debt. In doing so, we receive a discount when we purchase the property which is usually a % of the 30 Day “Quick Sale Value”. We then turn around and pass a portion of that discount on to and end buyer by selling to them either at or slightly below “Fair Market Value”. All of this is fully disclosed to the lender through proper documentation when we submit our offer.
We create a Win-Win transaction for everybody involved.
The Bank Wins, You Win, The Agents Win & We Win.
THE BENEFITS OF WORKING WITH US?
There are many advantages to working with us to complete your short sale. As we discussed previously “The Short Sale” doesn’t actually begin until an offer is made by a credible buyer ie; a contract has been signed and the “Short Sale Package” has been submitted to the bank for consideration. Typically you would list your property for sale and sit around waiting (sometimes months) for an offer to materialize. This is wasting valuable time while the Foreclosure clock is ticking and you are moving closer and closer to a Foreclosure Judgment to an Auction.
By working with us you can get the property under contract and the Short Sale Process started today rather listing it on the market and waiting months for an offer to materialize. Often times in order to acquire listing, inexperienced agents will suggest listing the property for an amount too high to fairly compete with other properties on the market.
What the seller needs to understand is that since there is no equity in the property and the lender is being asked to take a loss, getting the property under contract to get the short sale initiated and properly negotiated is the highest priority. Keeping that in mind it doesn’t matter what price the property goes under contract for as long as the lender accepts it for payment in full. By working with a professional investor and their team of professional negotiators who have a proven track record of getting results (see our testimonials and approval letters) is in their best interests.
If your situation qualifies for a Short Sale per lender guidelines and it meets our purchasing criteria.
WE WILL MAKE AN OFFER TO PURCHASE IMMEDIATELY!
We will make an offer to purchase your property (usually within 24 hours but often the same day you contact us). Remember, the Bank will not take a short sale seriously or negotiate a short sale until there is an offer to buy by a credible buyer, i.e. a SALE!
WE WILL COMPILE AND SUBMIT YOUR SHORT SALE PACKAGE
Next we will need to gather all of the required documentation for the bank and begin assembling the Short Sale package. We will provide you with a check list of the normal information required by the bank. However each bank has slightly different requirements and additional information may be required at a later time. You will also need to write a letter to the bank describing in detail exactly what types of hardships you have incurred that will no longer allow you to service the debt (don’t worry, we can help you with this). See our Homeowner Document Package and Checklist for the basic information needed in order to initiate a short sale.
WE WILL HANDLE ALL OF THE NEGOTIATIONS
We have experienced negotiators who are specially trained to handle Short Sale transactions and our offer is contingent upon them doing so. They will handle all of the negotiations until an agreement has been reached by all parties involved. The negotiator will stay in constant communication with the bank making arrangements for inspections and answering any questions they may have. It is their job to make sure that the process stays on track and continues moving forward until we have an acceptance letter. Also, we use a paperless document system that keeps everyone involved in the transaction up to date and informed throughout the process.
During the negotiation process, we will be aggressively marketing the property along with the assistance of a licensed agent who will list the property on the MLS. We also maintain a list of Private Investors (buy and hold), Wholesalers and Rehabbers who may become interested as we get closer to an acceptance. Once we have an acceptance letter from the bank we can market the property as an “Approved Short Sale” and use automatic price reductions until we have a buyer.
WE WILL CLOSE WITH ALL CASH
Once we have reached a settlement with the bank we will exercise our option and close with cash. We have the financial ability to close the deal, using our own cash to fund the transaction. We do not require a third party to close with you.
WHAT YOU SHOULD KNOW
You (the seller) must understand that we are Investors and that we intend to purchase your house as an investment vehicle via short sale and resell it at a profit. It is also important you understand that we do not charge you anything for our services nor does our profit come from you but from the settlement that we reach with the bank. We make money by taking a distressed asset and turning it into a non distressed asset while helping homeowners avoid foreclosure in the process. Above all else you must also be cooperative and proactive towards getting the Short Sale done.
- We propose to purchase your property from you, at a below-market price (the distressed market price) that is acceptable to your lender in full satisfaction of your mortgage in order to avoid a foreclosure with as little damage to your credit as possible.
- We will be negotiating the terms of this short sale with the lender on your behalf. We cannot guarantee you (the seller/borrower) that you will walk away with no deficiency judgment, but we can negotiate for the best possible outcome.
- We cannot make any promises regarding the lenders policy for reporting to the credit agency once we have negotiated a settlement. We will ask that “Paid as Agreed” be reported to the credit reporting agencies (Equifax®, Experian® and Trans Union®) on the settled debt. Paid as Agreed on a credit report means that the payments were made in accordance with the terms of the credit extended.
- Part of our negotiations with the Bank will include that the terms of the short sale will include a full release of lien and no deficiency pursuit.
- If the borrower is an owner-occupant in homesteaded property, you will not have a 1099-C problem – at least through 2012. This means you will not have to pay taxes on the balance of unsettled debt. Even if the property is an investment property the seller may qualify for the Mortgage Debt Forgiveness Act (expected to be extended in 2012) under the Insolvency Exclusion.
- You will receive no proceeds from the sale. The bank is agreeing to take a loss when they negotiate a settlement and as such they will not allow the homeowner to receive any proceeds from the sale. All proceeds must be applied to servicing the debt. There are some occasions depending on the investor behind the loan the seller is allowed a few thousand dollars for a moving expense.
- We intend to market your property for resale during the time we are negotiating with the bank and require your cooperation in signing a commission agreement and making the house available to show.
- Once your short sale is closed, we intend to resell the property at a profit as quickly as possible.
- We have the financial ability to close the deal, using our own cash to fund the transaction or by utilizing a hard-money lender. We do not require a third party to close with you.
- We are proposing a legal transaction (this is not a confusing Land Trust where beneficiaries are switched around all the time, any form of equity skimming, or other fraudulent scheme) and we have no objection to you getting a legal opinion before you sign the papers, but we do have a time limit.
- We are sympathetic to your particular situation, but we are investors. Your house works in our business plan, but if you are not interested we will go to the next house that also works. We are not making a profit on YOU, but on the Bank that loaned you the money in the first place.
UNDERSTANDING THE PROCESS AND WHAT TO EXPECT
- In order to begin the process we will need you to complete a questionnaire that will help us understand the details surrounding your particular situation and the property so that we can begin to formulate a plan. The questionnaire was designed to help us identify all of the liens and judgments that are clouding the title and must be cleared in order for the property to be sold free and clear. All information provided to us is keep completely confidential and will only be used to evaluate the transaction so that we and our professional negotiators know exactly what needs to be addressed. We have several options for providing this information:
- Once we have evaluated your situation and determined that it fits our investment criteria and the lenders criteria for a short sale we will schedule a time to have one of our specially trained agents meet with you to go over our process and answer any questions you may. Once the agent has reviewed the documents with you they will leave them with you for a period of three days so that you will have ample time to review them and discuss the process with your closest associates, CPA or Attorney. This will also allow you time to collect your financials and get the necessary documents notarized. The agent will schedule a follow-up appointment to pick up the documents following the three day period.
- During the initial consultation they will review each of the documents that the lender requires as well as the documents we use to initiate the transaction.
- Once all of the documents are signed and the short sale package has been assembled it will be submitted to the lender for their review.
- The lender will then conduct and appraisal also know as a BPO where the lender will typically send an agent to the property to determine what the property is currently worth. We ask that the agent whom you are working with attend the BPO appointment to help assist the lenders agent in determining the properties true market value.
- Once the BPO has been returned to the lender they will either decide to either accept, reject or counter the offer. This is where a skilled negotiator with years of experience comes into play and where they earn their living. They will work with the lenders loss mitigator to negotiate the best possible terms on your behalf in an effort to get a full release of deficiency and no seller contributions in the form of a promissory note. In doing so we have many proprietary methods of reaching a settlement that meets this goal including improving our offer to a point where they are willing to forgo seeking an deficiency.
- Once an approval has been reached it will be presented to the seller for your review and acceptance.
- The entire process will typically take 30-90 days.
If you are ready to get started or need additional information please select one of the options below.
- You can download the questionnaire here.
- You can get additional information and complete a basic form online here.
- If your property is already listed your our agent can complete the information here.
If you would like immediate assistance please complete the form below and we will contact you!