Loan Modification
Cost - Most loan modification companies charge you thousand of dollars to do what we can help you do for FREE - absolutely no cost to you.
Principal Reductions - Banks are RARELY (can almost say never) reducing loan balances.... call your bank and ask. Unfortunately, only about 4-5% of loan modifications are successful.
Short Sale
In essence a short sale will be much easier on your credit than a foreclosure. Fannie Mae states you can buy again after 2 years and right away if you are current on your mortgage while you complete a short sale. Did you know that you may qualify to get $3,000 for doing the Short Sale?
Taxation - The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the "discharge of debt" on their principal residence.
Bankruptcy - Filing bankruptcy will temporarily delay the foreclosure process. Deficiency Judgments and debts discharged through bankruptcy are not considered taxable income. In most cases short sales and debt forgiveness is resolved without filing bankruptcy. Rental Property - Banks will allow short sales on rental property.
Time Frame - Homeowners can stay in their homes while the short sale process is ongoing; in most cases much longer than the foreclosure process.
Cost - NONE.... The homeowner pays nothing to close the escrow. The bank covers all the closing costs and commissions.
Foreclosure
Fannie Mae says the waiting period (after a foreclosure) to get financing on a new home purchase is 5 to 7 years. Foreclosure will impede employment, security clearance, lines of credit and credit card limits....
Taxation - The homeowner may still have a taxable consequence even after foreclosure.
Deficiency Judgement - The homeowner may be sued after the foreclosure sale for any deficiency or loss to the bank. Recourse vs. non-recourse loans, you need to know the difference.
Free Help
Would you like help with any of the following:
- Hardship Letters
- Who do you need to contact?
- How should I package and send the documents?
- What documentation should I send?
- Do I qualify for HAFA?
Don't hesitate to contact me! You pay nothing!
As a Certified Distressed Property Expert, I'm here to help. I specialize in short sale properties and can assist both buyers and sellers. Give us a call! 951.970.5740
Options to avoid Foreclosure
