Homeowners and Real Estate Investors
MORTGAGE MODIFICATION – FORECLOSURE – SHORT SALE:
These are all uncomfortable terms that most people do not understand when dealing with their mortgage issues. Our practice is solely dedicated to providing you with expert legal and real estate services during these unusual times. We want you to know your options if you longer can afford to pay your monthly mortgage payment or whether you have an affirmative claim against your Bank.
The following are some options you may explore. As there are numerous ways to resolve foreclosure issues, these options may be varied according to the legal and financial creativity of the borrower and professionals.
Mortgage Modification :
This is a process that we can accomplish for you at any stage. It is initiated by making an application to your Bank or any governmental program in effect, to change the terms of your loan. At this time, Banks are reducing interest rates and extending the term of the loans to make the monthly payments less.
After communication is made and your application is processed, the Bank will advise whether they will modify and if so, the possible new terms of the modification. Usually, the trial period requires the borrower to pay a low monthly payment for 3 months while the application is being processed. Many people believe that the trial payment will be the final adjusted payment, but that is not true. After review, the mortgage servicer will advise of whether they will modify and the new terms acceptable to the Bank. Notwithstanding, these new terms may not be satisfactory to you.
Foreclosure:
This is a legal process to satisfy the obligation you have with the Bank according to your Note and Mortgage. Usually after about 3 months or more of non-payment, Banks will refer your matter to their attorneys to file a lawsuit. The lawsuit papers will be personally served on you by the Sheriff or other authorized process server. You must deal with this immediately. If you do not file the appropriate documents in your defense, the Bank’s attorneys will get an order from the Court to sell your house. The house will be sold in about 2-3 months and you will be evicted if you do not leave.
Everyone who has foreclosure issues has different goals with regard to their homes or investment properties. Issues as to “deficiency judgment”, payment of taxes, insurance, HOA dues, tenants and more are common.
If you have been served with lawsuit papers, you need to make an appointment to discuss your options.
Short Sales:
Short Sale is a term used when a property is sold for less than thee amount owed to the Bank. In order to complete a short sale transaction, the Bank must approve the lesser amount that it will receive.
Before or after a foreclosure action is started by the Bank, you may list your property for sale with a licensed real estate Broker or try to sell on your own. Since there are many documents and short sale transactions are complicated, having an experienced Broker and Attorney is almost necessary.
Once someone makes an offer to buy your property for less than you owe, the contract is prepared and signed by Seller and Buyer. Then your Broker or Attorney will submit the contract and complete documentation for short sale approval.
Many times the Bank will not accept the offer made and parties may have to negotiate the price. Usually, the Bank will respond to an offer within 60 days. A new law effective April 15th, mandates that Banks cooperate more to facilitate short sales. If the short sale contract is approved, the title company for the Seller will process the closing with the Buyer and Buyer's Bank.
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