Understanding Your Options
First of all, know that you are not alone and that this is happening to millions of Americans across the Country right now, especially in states like California. Also know that this is not the end of the world and that you will recover from this stressful period. Our goal is to help you free yourself from this situation and move on with your life as quickly and easily as possible.
Here is a brief summary of how the foreclosure process works
1. Owner unable to make mortgage payments
2. Bank files a Notice Of Default (NOD), publishes the information, and must mail owner within 10 business days. Typically, the owner misses 3 or more payments before an NOD is filed. Some banks may try to contact you before filing an NOD to see if the situation can be resolved.
3. The bank must wait at least 90 DAYS before taking any further action. During this REDEMPTION PERIOD owner may avoid foreclose by making all back mortgage payments and bring the loan current.
4. After 90 DAYS (and sometimes longer) the bank forecloses the property and files a Notice of Trustee Sale 21 DAYS before selling the property at auction.
5. This is still a REDEMPTION PERIOD where the owner can stop the foreclosure by bringing the loan current up until 5 DAYS before the auction. At 5 DAYS or less before auction owner may still stop foreclosure, but must now pay off the balance of the entire loan.
6. Bank tries to sell property at auction. If property does not sell then it comes back to the bank as Real Estate Owned (REO). At this point the bank will try to sell the property through a real estate broker. Most foreclosed properties end up becoming REO.
7. Minimum time frame in California from NOD to auction is 111 DAYS.
So, What Are Your Options?
1. Bring the loan current.
- Most of us are not in a position to do this if we have already missed payments
2. Sell the property on the open market.
- If the property sells for less than is owed, then you will still be liable to pay back the remainder of the loan balance.
3. Get a loan modification.
- You must still qualify for the loan and show that you can make payments. Usually denied.
4. Let the property go to auction.
- This is a very hard hit to your credit.
5. Work with us to buy your house through a short sale.
- This is a win for you by saving your credit from the devastating damage of a foreclosure and relieving you from this burden. A short sale negotiation also places us in a position to ask the bank for "satisfaction" of your loan and possibly release you from liability for any difference owed .
Why use us to handle your short sale?
- We Can Help You Avoid Foreclosure
- When we are successful with the bank negotiation, we pay cash to buy the house.
- You will have direct contact with the representative handling your file.
- Confidentiality - No signs in your yard saying Foreclosure, Bank REPO or Short Sale and we will not sell your information
- Personal attention and care for you, our client! You are NOT just a number
- We have specialized knowledge and have the specific skills to help you, no matter what your situation is
- We have expert negotiators working with your bank
- Limit your credit damage
- Eliminate your debt with your lender
- Get your house SOLD quickly
- ALL FOR NO MONEY OUT OF POCKET AND NO OBLIGATION!
This is Where Kucan & Clark Partners
Steps In and Helps
The lender will usually require the borrower to submit a lot of information to the lender in order to consider the short sale.
We will handle the entire Short Sale process from beginning to end!
The information required may include, but not limited to:
- Income documentation such as W-2's & Pay Check Stubs to verify the borrowers income
- Bank Statements to verify the borrowers assets
- Tax Returns for the last 2 years
- Profit & Loss Statements (if self employed)
- A List of ALL Repairs the house needs
- Hardship Letter - This letter will describe for the lender the reasons the borrowers are in their current financial position they are in and will ask the lender to accept the short sale.
- Fair market value for the property - depending on the lender they may require an appraisal or may accept an opinion from a local Realtor known as a Comparative Market Analysis (CMA) or what's known as a Brokers Price Opinion (BPO)
- Preliminary proceeds sheet from the sale of the property (aka HUD-1). This will show the proceeds of the sale of the property after the mortgage is paid off and all other closing costs and fees are paid. This will be negative in the case of the short sale and this negative amount is the amount of the shortage.
- Purchase and Sales Agreement from Kucan&Clark Partners.
When the lender reviews all of this they may or may not approve the short sale. If they do not approve the short sale they will proceed with the foreclosure. If they do agree to the short sale you will close on the sale of your property and the lender will take the loss.