To see the actual document sent to our clients please click on the thumbnail link.  The list of results will continue to be updated with more results.

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Another Successful Short Sale.
Over $100,000.00 Waved by the Bank!

The bank agrees to take
$100,000 less than the amount due
as full and final satisfaction.
Loan Provider: GMAC

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We hold our clients privacy in the highest of confidence, in order to ensure their attorney/client confidentiality all clients names and property/mortgage inferences have been blacked out.

The results shown are not indicative of a result that you may receive as all cases and clients financial situations are different.  We do not guarantee any results or that you will get a short sale approved, or principal reduction, etc. We no longer assist homeowners in contacting their lender for a loan modification. Be careful of any company or lawyer that gives you a guarantee as they are impossible to give as ultimately the final decision rests with the lender.

 

Loan Modification – Helpful Information for Homeowners attempting loan modifications on their own

What is a Loan Modification?

A loan modification happens when a borrower, who is facing great financial hardship, manages to work with the lender to change the terms of their mortgage loan. The changes may be permanent or temporary and usually focus on the interest rate, length of the loan or the monthly payment.

Who can qualify for a Loan Modification?

Anyone facing serious financial hardship who expects to be in danger of home foreclosure should consider a loan modification. The final judge on who is eligible for a modification is the lender holding the loan so the criteria changes from situation to situation and lender to lender. There are also varying circumstances that can affect a homeowners chances if they have heavy debt or if they are filing for bankruptcy.  We assist our clients in determining when to apply for a loan modification if they are also in need of bankruptcy, some may need to file before, some after their loan modification.

In general, you can refer to the following guidelines or your lender’s published guidelines.

Most lenders will not approve a loan modification unless someone has a high rate of mortgage debt compared to income. In addition your home likely would have to be worth less than the total amount of outstanding mortgages on the property. In addition, a borrower would have to have a realistic chance of keeping up on the modified loan amount.

If a homeowner purchased a home and took out loans that they clearly could not afford, a loan modification is not a likely outcome. People in this situation would instead likely need to pursue Foreclosure, Deed in Lieu of Foreclosure, Short Sale, Bankruptcy or a combination of these options.

How does the Loan Modification process work?

The general process of a loan modification involves convincing the lender that you face a grave financial situation but that you can also keep up to date on the modified monthly payments.

In order to prove these, you need to present a complete picture of your current financial situation as well as an idea of what can be expected in the months and years ahead. A borrower would also need to speak to the correct people at the lender to make sure that the person has the authority to make decisions and enact any agreement made.

Once you have proven your current hardship and your future ability to keep up on payments an agreement is signed by all parties and a borrower will receive and outline of their new payment responsibility.

What are Real Estate Judgments?

Real Estate Judgments are court orders that a homeowner or borrower may receive in regard to a piece of property that is currently or previously owned. These judgments usually order the person who receives them to pay more money regarding a piece of property.

Many times the person who receives the real estate judgment is not aware that they may owe more money on a real estate issue that they thought was resolved.

Who is affected by Real Estate Judgments?

There are many types of real estate judgments but the ones that usually catch people by surprise have to do with either a home that was Foreclosed and sold at auction or home that was sold through the use of a Short Sale.

In some cases a person may also receive a Real Estate Judgment after being involved in a Deed in Lieu of Foreclosure agreement with their lender.

In most cases people are surprised by Real Estate Judgments because they did not use a skilled and knowledgeable attorney when going through the Foreclosure, Short Sale or Deed In Lieu of Foreclosure process. It is best to have a skilled attorney take the lead with any of these complex real estate situations but you should at least have the paperwork reviewed by an experienced attorney before going through with these transactions.

Contact us today for a free consultation or check out our Menu of Services to determine see if any of our Self-Help Services would be useful for your situation.

How does the Real Estate Judgement process work?

The two main situations that cause Real Estate Judgments are when a home is Foreclosed and when a Short Sale goes through. Each of these is discussed below:

Real Estate Judgments – Foreclosure:
The people that get into trouble after a Foreclosure are those that had taken out a home equity line of credit or some other kind of refinance after the original date of the purchase. In California, the holder of a second mortgage (or third, fourth, etc) can still come after a borrower for money, even if a Foreclosure and sale at auction has already occurred.

Real estate Judgments – Short Sale:
Real Estate Judgments resulting from a Short Sale can happen in the same way that they occur after a Foreclosure. The holder of a Second, Third or Fourth mortgage on the property can legally come back for compensation from the original borrower. If the subsequent lenders (2nd, 3rd, etc.) are not included in the Short Sale agreement in a legally binding way, a person may be opening themselves up to a future Real Estate Judgment.

The difference between the amount owed on the loan and the home sale amount during a Short Sale is sometimes called a deficiency. The lender may or may not waive this deficiency. If the deficiency is waived by lender, the seller in the Short Sale transaction does not have to pay the deficiency in the future. If the lender fails to waive the deficiency in a legally binding way, the seller could have to pay this back in the future.

Check out our services or contact us today for a free consultation to make sure that you are protected from future Real Estate Judgments.

What is Home Reinstatement?

Home reinstatement has several meanings that can vary from lender to lender.  The specialized meaning that we are discussing is the process of a homeowner getting their house back after a Foreclosure takes place.

People are sometimes surprised to find that with the right guidance and in the right situation, a person can get a home back after Foreclosure.

Who can qualify for Home Reinstatement?

Home reinstatement can only realistically happen in certain situations.

To be eligible for home reinstatement a person must have had their home Foreclosed. If a Short Sale or Deed in Lieu of Foreclosure was used, home reinstatement is not a likely option.

The next requirement is that during the Foreclosure auction, it did not sell to an outside third party. When a home does not sell at auction, the bank or lender retains ownership. When a bank owns a property after foreclosure it is referred to as “Bank Owned” or “Real Estate Owned (REO)”.

Though it is not a requirement, home reinstatement is much more likely if the person involved has at least half of the past due loan amount on hand. A person that is pursuing Home Reinstatement must prove that this home will not be foreclosed again.

How does the Home Reinstatement process work?

Once the above conditions are met, there are two avenues to home reinstatement. In both of the following situations, it is important to note that the final decision is at the grace of the lender. A person pursuing home reinstatement must prove that they can now afford the home.

The first avenue to home reinstatement is known as Rescinding and Reinstating a loan. For this type of reinstatement an experienced attorney analyzes all of the foreclosure documents looking for a mistake on the part of the lender. If an error is found, a person has an opening to get their Foreclosed home back. After agreement with the lender, the previous loan is activated again and the homeowner can move back into their home.

The second path to home reinstatement is called Redemption and it is an exceedingly complicated legal matter. home reinstatement by Redemption would only be considered after all loan and Foreclosure documents are reviewed and no lender errors are found. An experienced and reputable attorney would sit down with a client and weight the costs and benefits of Redemption before moving forward with this process.

What is Foreclosure?

Foreclosure is the legal proceeding when a lender obtains a court order giving the lender the right to resell the property. This normally takes place when an owner buys a property and takes out a loan, or mortgage, to pay for the piece of property. If the property owner misses one or more payments, the foreclosure process may begin with an official notice or call from the lender demanding payment.

Who is affected by Foreclosure?

Foreclosure is affecting more people now than any time in US History. Foreclosures nationwide increased 225% from 2006 to 2008, with 1 in 54 homeowners receiving foreclosure notices in 2008. Final numbers for 2009 are expected to be as high, or higher, than those in 2009. The states that have been hardest hit by foreclosures were the same ones that that recorded record high housing price increases in the late 90s to around 2005. These states included California, Nevada, Florida & Arizona.

It is expected that 8.1 million homeownders, or 16% of all homeowners, will fall into foreclosure by 2012.

While it used to be true that Foreclosure affected only lower income individuals, this trend has not been the case in recent years. The rise in exotic mortgages in the late 90s and early 2000s coupled with the steep decline in housing prices in the last few years has made foreclosure a reality for nearly all segements of our society.

How does the Foreclosure process work?

Foreclosure processes vary from state to state but they do generally follow the same general process. The information in this section refers to California procedure but may be used a general guide for other states. You should review the official website of your state to look for state specific processes and information.

As is mentioned in the first section above (“What is Foreclosure?”), your first indication of a pending foreclosure is a demand for payment from the lender after one or more missed payments. If you do not respond to this demand or can’t come to an agreement with your lender, a Notice of Default is filed with with the county Recorder’s Office. The home owner will also be served with the Notice of Default.

Once the Notice of Default is filed, the 90 day Reinstatement Waiting Period begins. This waiting period is designed to give the home owner the time to pull together enough money to bring the debt current and pay off overdue payments.

After the 90 day waiting period, a Notice of Sale of the property can be issued and the home owner must be served with the notice. The Notice of Sale must be published once per week for a period of a least 20 days.

When the 20 day publication period is up, the auction for sale of the home can be held.

Altogether the minimum time that between the filing of the Notice of Default and the home auction is 111 days.