Stop a Foreclosure in California and Save your Credit?
You owe more than you home is worth?
You understand that most Realtors pretend to be attorneys and tell homeowners not to worry, but oddly Realtors as a group only close about 20% of their short sales.
You understand that many banks are now starting to send out six figure collection letters to homeower's who were told by their Realtors they would be protected by a short sale or foreclosure.
You get blank looks from Realtors when you ask Realtors to explain why sold out junior of recourse loans can go after the homeowner for the entire loan balance.
Does Continuing to pay your home loan seem like a poor business decision?
Our Upside Down Analysis (SM). If you wish to consult with an attorney before you make any decisions contact us for an upside down analysis.
If you property is an Southern California and you have not listed it with a Realtors call us for a free consult. (800.608.8311.)
Note: there is a new law in California which gives the borrower more leverage against lenders. The law is designed to require lenders to offer loan mods to qualified borrowers. Expect to see more on this in the future.
Short Sales in California
Can be a very effective way to get out from under your loans, if done correctly. For San Diego homeowners the easy part of the short sale is finding the buyer. The hard part is finding a Realtors
who has experience getting the sales done and getting the sellers released from deficiencies.
Some Issues to Consider
a. The Potential for Deficiency Judgments
Release of liability for the loans, in our legal opinion if the release is not in writing - do not listen to anyone who tells you the lenders will not come after you for the remaining loan balance. That advice has proven to be wrong, multiple times by clients who have come in an shown me collections notices for 6 figures.
b. Tax Liability
You must consider CA Franchise Tax Board and IRS. Mortgage Debt Relief acts are significantly different.
c. Credit
Make sure you understand the downside before you go into default. If your Realtor starts talking about the one action rule - ask them to put their advice in writing and ask them if they have mal practice insurance if they are wrong.
To get started on your short sale fill out our contact form below.
Short Payoff
For those of you with two loans - you may wish to attempt to compromise the second lien and then decide what to do about your first loan. By combining lender liablity strategies against the second lender we have been able to negotiate short payoffs for 1 to 5 cent on the dollar. Recently, we compromised a $150,000 second from Bank of America for $1,500. That is an unusually good result but short payoffs can be obtained if the right strategies are put in place before you begin the short sale or workout process.
To get started on your Short Pay fill our our contact form below.
If you would like to to speak with an experienced attorney and Realtor about about all your options
Let us know in our contact form.
Loan Modification or Forbearance
(For those interested in keeping their homes.)
Deed in Lieu
The deed goes back to the lender and in exchage the borrower negotiates a release from liability on the remaining loan balance. Many lenders do want to see an attempt at a short sale prior to consenting to a Deed in Lieu. However some lenders have agreed to Deed in Lieus right off the bat. If you advisor does not know why a lender might quickly agree to a Deed in Lieu, you might need and advisor with more experience.
To get started on your deed in lieu of foreclosure fill out our contact form below.
Bankruptcy
Lien Stripping within a bankruptcy - you may be able to have your second lien stripped away in a bankruptcy.
You may wish to combine a short sale with a bankruptcy.
For more information fill out the contact form below.
Lender LiabilityAudit SM
There are laws which lawyers are able to leverage to back lenders into a corner. If you have assets, a salary to protect, or you are very concerned about your credit score - you should consider doing a lender liablity audit combined with a legal letter... or even the opening paperwork for a law suit.
To get started on our Lender Liability Audit SM fill out our contact form below.