What is a mortgage default?     A mortgage is considered to be in default when one or more monthly payments have been missed.

What solutions are available if I am in default on my mortgage payments? You may qualify for a broad range of help. Some solutions are

o        Short Sale/Payoff
o        Forbearance Agreement
o        Loan Modification
o        Deed in Lieu

What is a Short Sale/Payoff?    Short Sales occur when borrowers sell their properties for amounts that are less than the amounts owed to the lender.

How do I qualify for assistance?   Borrowers need to prove that they are experiencing a substantial financial hardship.

What is a Hardship?   A hardship is a situation that has a life changing effect for the borrower that results in an inability to pay the mortgage debt in either, short or long term. Some examples are:

o        Separation or Divorce
o        Medical Bills
o        Inability to work due to health reasons
o        Death of Spouse
o        Job Relocation
o        Reduced Income or Unemployment
o        Business Failure

How do I qualify for a Short Sale?   A borrower must prove that a hardship exists. The lender must be willing to accept the short sale proceeds as full settlement of the debt.

What is required from the property owner?   The property owner must:  

o        Sign a listing agreement with the Realtor.
o        List the property for sale.
o        Cooperate with access, showings, offers.
o        Vacate the home following close of title.
o        Agree not to finance or otherwise encumber the property.
o        Be responsible to maintain the home in "show" condition.
o        Be responsible for minor repairs to the home.
o        Be a responsible homeowner until the close and vacancy of home.
o        Leave the home in broom clean condition

Can any Real Estate Agent assist me in selling my home in a short sale situation?  Possibly, but usually you have only one shot to succeed in a short sale transaction, it is therefore highly recommended you work with a company experienced in short sale negotiations that can properly represent you and is specialized in this field. We have established relationships with lenders and have been trained directly by them.  The current amount of homeowners in default is at an all time high.  We have worked with lenders to facilitate a short-sale, saving them the cost of a foreclosure and the additional loss to the house's value during the time the foreclosure process takes.

If you would like more information on this process, we welcome your call.

For a confidential inquiry, please call Carol Crandall (831) 236-2712 or Jan Wright Bessey (831) 917-2892