You’ve come here searching for answers or perhaps visiting for a friend. During the last economic crisis in 2008, reliable information about loan modifications, short sales and stopping foreclosures was tough to come by. My intention with this blog is to create a place where this information can be quickly and easily searched and accessed.
When there is a crisis, you have the parasites come out of the woodwork looking to make a quick buck. Attorneys and fly by night operations offering “loan modifications”, “loan balance reductions”, “forensic loan audits” and other such shenanigans ready to part desperate homeowners from their savings, which they cannot afford to lose. This time around, it will happen again. I’m going to do what I can to ensure it won’t happen to you. You can view articles I’ve researched and personally experienced under a general “category” under the blog topics section to your right if you are on a PC or under this page if you’re on your smartphone. There is also a handy dandy search function available as well.
Typically, when a homeowner goes into default (late on their mortgage), the thought process starts at “I need to stop my foreclosure and stay in my home somehow” to “loan modification is my best bet to lower my payment and keep my house” to “welp that didn’t work out so now I need to think about a short sale.” This blog is laid out accordingly to make it easy to get the important info wherever you are in the process.
With all that being said, I’ll get things started here with some frequently asked questions, then you can take it from there, explore around and educate yourself.
Do you know how to stop the foreclosure of my home?
It is certainly possible to stop a foreclosure, but not in every case. Obviously, paying back all your past due payments will get it done. You can get your lender to give you some time (forbearance) if you temporarily had a job loss but are now able to make payments. Also qualifying for a permanent loan modification or government assistance can work. If you do not qualify for any of the above then a short sale or a deed in lieu of foreclosure may be considered. Call/text me directly to see what could potentially be the best option for you for your specific situation or click here for more information about stopping your foreclosure.
What about bankruptcy stopping a foreclosure?
Bankruptcy does indeed stop the foreclosure process, even if your house is going to auction tomorrow. But (isn’t there always one?) not everyone will qualify. I do have an attorney that specializes in this and would be more than happy to pre-qualify you at no charge and see if this is a realistic option for you. Call/text or email me for his info.
What about government assistance programs?
There are two different types of government assistance for San Diego homeowners. One is counseling which is free through a number of non-profits. Due to its “free” status, the quality of assistance is generally poor, with counselors typically not being responsive or quick with paperwork. This would be ineffective if your goal is to keep your home. The other is monetary assistance through a government organization called Keep Your Home California. These programs have several monetary based solutions including grants for homeowners that have been unemployed, fallen behind on their payments, are underwater on their home and transition assistance if you are doing a short sale on your home. If you need more information on how these programs can help you, call/text me directly.
Will the bank reduce my principal amount if I do a loan modification?
Being completely honest, you’d have a better chance of winning the lottery. Personally, I’ve always “heard” of someone’s brother’s sister’s cousin has had this happen, but have never seen it in the flesh in assisting over 1,000 loan modification applications processed. Think about it, why would a bank lower your balance if they can just foreclose and move on? What a lender may do includes cancelling your missed payments, extending the length of the loan in order to lower your payment amount, or adding your missed payments to the total principal amount. Basically its what they’d do if you had a student loan in the same situation.
While I’m waiting for my loan modification, will the bank foreclose on me?
No, in California, you have the Homeowner Bill of Rights which forbids banks who are considering your loan modification from foreclosing on your home. However, it does not stop bank shenanigans, such as “not being approved” for whatever reason and proceeding with the foreclosure anyway. You need to be right on top of them when doing a modification. Do not take it lightly. Click here for a free guide on doing your own loan modification or if you just have general questions, comments or concerns about it, call/text me directly and I can provide advice to your specific situation.
Will I be approved for a loan modification?
The honest answer is nobody, not even the bank’s loan modification underwriting, knows. Every bank has their own criteria they do not publish, not to mention the investors in the loan criteria. Anything can happen, so it is worth a try, but your odds are around 25% of success according to the Department of Treasury’s own research. One word of warning…DO NOT PAY ANYONE UPFRONT FOR LOAN MODIFICATION ASSISTANCE!! At least 25% of my clients have been ripped off by unscrupulous lawyers and fly by night companies who did nothing the homeowner could not do themselves for free. Want to increase your chances of getting your loan mod approved? Check out my free guide for doing your own loan modification, or call/text me direct.
San Diego Short Sale
How long does the short sale process take?
Three months if your lender has a system in place that gets these things done timely. If they are still implementing a system in order to deal with increasing volume from a declining market, then it could take up to 6 months. Keep in mind, this is if you have a Realtor that knows what the heck they’re doing. My team has over 1,000 short sales under their belt and have dealt with nearly every conceivable scenario you can think of. We get them done as quickly as possible so you can move on with life. We understand that is the most important part of the short sale process for our clients.
Can I short sale my home that has a FHA mortgage?
Who pays for the cost of the short sale?
QUESTIONS? COMMENTS? CONCERNS?
Contact me directly, I would love to hear from you! And I WILL get back to you!