If you have fallen behind on your mortgage you will receive information – and lots of not so subtle suggestions – from many people who want to take advantage of your temporary misfortune. They will tell you that time is your enemy and that you must act immediately to save your credit. That will normally be followed by a proposal to solve your problem by selling or deeding your property to them.

Don't Do It!
Don’t do anything until you understand your options. 

Here are some of your options:

  A) Sell Your Property

 B) Sell the property at fair market value and put your equity in your bank account where it belongs. I can help here and I will be sure you get your equity.
  C) A Short Sale:  If you owe more than your home is worth, you can look at      negotiating a discounted payoff with your mortgage company. I can negotiate with your mortgage company on your behalf to get approved for a Short Sale. The best part is: The lender nearly always pays all the sales costs including title and escrow fees, commissions and most repairs. 
  D) Refinance
Refinance the property and pay off existing loans.
I have loan sources for this type of loan, but the loans are very expensive and they normally require that the borrower have significant equity in the property. Nevertheless, refinancing is an option for some.

  E) Negotiate a Forbearance Agreement
Negotiate a Forbearance Agreement with your mortgage company.
For those borrowers who experienced a very temporary event that caused them to fall behind on their mortgage, a Forbearance Agreement with the lender is a good option. In most cases, the mortgage company is going to look for two things when considering a forbearance agreement.

First, why the loan became delinquent in the first place. It helps greatly if the problem was something beyond the control of the borrower – serious illness or injury, temporary disability or a one-time disruption in income.

Second, that the borrower’s financial difficulties have been corrected. The mortgage company wants to know that the borrower is now on a solid footing and can be counted upon to make regular loan payments as agreed. The new payment will probably include some amount to go to the delinquent amount.

  F) Do Nothing
Of course, you could just do nothing. Many go this route because the situation seems overwhelming. It is a heavy burden, but the consequences of a foreclosure are serious. Let’s at least consider potential solutions that help you avoid foreclosure.  Call or send me an email. I can make things easier than they might seem.

  G) Foreclosure:

Delinquency Period
2 months - Current owner must be at least two months behind on the mortgage (1st or 2nd) before the lender can record a Notice of Default (NOD) So, when you become two months delinquent on your mortgage the lender will probably begin the foreclosure process by directing the Trustee to record an NOD.

Notice of Default Period
3 months – The NOD period lasts a minimum of three months. During this time the borrower will be contacted by the lender in an effort to resolve the situation. At the end of the three months the lender will likely direct the trustee to publish a notice of Trustee Sale.

Trustee Sale Period
20 days – The actual Trustee’s Sale can occur no sooner than 20 days after the Notice of Trustee’s Sale is posted on the property, published in a publication of general circulation and mailed to the borrower.

Minimum period from initial default until property has been foreclosed upon and title transferred to lender or bidder at auction is five months and 20 days* ( *calculated from the end of the period for which the last full mortgage payment was made by borrower and accepted by lender).

Trustee's Deed - If the property goes to sale on the date published by the Trustee, the high bidder action, or the foreclosing lien holder gain title to the property with a Trustee's Deed.

NOTES: Borrower has the right to reinstate the loan up to five (5) days prior to the Trustee Sale date. The Internal Revenue Service (IRS) has up to 120 days after the Foreclosure sale to redeem the property. Upon the issuance of a Trustee Deed junior mortgages are generally extinguished. If a junior lean holder is foreclosing, the lender or acquirer through auctions receives a Trustee Deed and holds title subject to the senior lien(s).

What I Do and Don't Do

Getting your Short Sale approved – that is my number one goal. Along the way I will take the time to help you understand the process.

It is my job to prepare you for the Short Sale process, if you feel that is your best option. I will keep you informed along the way so you know what progress is being made.

Sometimes I have to ask tough questions. In order to help you select the solution that is best for you, I will need information. I will not, however, lose sight of who I am serving.

At all times, your interests come first – you have my word on it.

What I Do
Listen to you, so we understand how to help
Provide guidance, so you can move in the right direction quickly
Put together a Great File

What I Don’t Do

I don’t try and buy your property to take your equity
I don’t recommend that you deed your property to a third party and give up control of your home
I won’t lie to a lender to save a loan
I don’t ask for any up front fees – ever!