Phone: 718-323-0900 | 105-24 Crossbay Blvd, Ozone Park, NY, 11417

Foreclosure Options

What Is a Short Sale

A short sale is when your property cannot be sold for the full amount of the loan. When you request a short sale your total loan balance will be negotiated with the lender (including liens, taxes, water & sewer, sellers closing expenses,penalties and other charges) for them to accept less than the amount owed as full payment. Normally, no out of pocket money from the homeowner.

If it is a primary residence HAFA (Home Affordable Foreclosure Alternative) program offers homeowners up to $3,000.00 as moving expenses.

Advantages of a Short Sale

Fannie Mae has announced a reduced mandatory waiting period for the homeowner to correct or establish credit history to 2 years after the property is sold as a short sale. If the property is foreclosed by the lender, it can stay on your credit history for up to 10 years.

Selling a home through Short Sale is a legitimate way of giving the homeowner enough time to sell their property during the foreclosure process. In turn, allowing the homeowner to move on with their lives and lessen the damage to their credit record.

Banks are not in the business of owning Real Estate. Every property that they foreclose, costs them thousands of dollars. They are not pleased if their REO (Real Estate Owned) books have large inventory; they make profit by lending and collecting mortgage payments. In our opinion, Short Sales are in the lenders best interest. You need an experienced negotiator like Sonnie Realty to convince the lender and demonstrate hard numbers that will lead them to conclude that selling through short sale is more beneficial to them rather than the amount they would receive from foreclosing the property and then selling it as an REO.

To SELL your home
SHORT SALE

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What is a Foreclosure Process?

Lenders normally start the foreclosure process 3 to 6 months after the homeowner misses the first mortgage payment. The lender will file a lawsuit in Court and send notices through a Process Server or by mail, demanding payment. After 30 days the foreclosure process will begin to accelerate. You should contact Sonnie Realty immediately, so we can discuss about some options that are beneficial to you:

A MODIFICATION, if you choose to keep your home for good.

A CASH BUYER, that will result in an immediate sale and possibly money in your pocket.

A CASH INVESTOR, who will close in 2 weeks and allow you to stay inthe house for a number of months, RENT FREE.

A SHORT SALE, if you owe too much on your mortga

If you don’t call Sonnie Realty and ignore the notices; the foreclosure process will start sooner.

 

The lender, prior to the auction, is required to notify the public regarding the proceedings. Once the property is sold through an auction you will be evicted and you will have limited time to find a new place to live.

WARNING!

If you hire another Realtor or Real Estate Professional, look for someone who is well versed in Short Sales. NOT ALL real estate brokers or sales agents know how to conduct a short sale or know how to work with lenders into negotiating one.

Having a Real Estate License does not make them automatic experts in short sales. It calls for extra training and experience, that not all Real Estate Professionals have.

Remember: Whoever you choose, you choose them to represent your interests. You NEED the most qualified representation possible when it comes to stopping foreclosure and saving your home, like Sonnie Realty.

 

To KEEP your home:
MODIFICATION

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Other Alternatives to Foreclosure:

Forbearance

Under a forbearance agreement, your lender may allow you to reduce or suspend payments for a short period of time. At the end of the forbearance period, you will begin making regular payments plus an additional amount of the past due payments each month until you are caught up.

PRO: You remain in your home. A temporary reduced or suspended payment provides time needed to save money, pay off other bills, find employment or additional employment, or recover from injury or illness.

CON: At the end of the forbearance period, your payment will be higher due to the past due amounts owed. Your mortgage payments could be 20% - 25% higher for a period of 1-year or more.

Loan Modification

If you can make payments on your loan, but dont have enough money to bring your account current, your lender may be able to change the terms of your original loan to absorb your delinquent payments and make the payments more affordable. Your loan can be permanently be changed by adding the missed payments to the back end of the existing loan balance, lowering the interest rate or making an adjustable rate fixed, or extending the number of years you have to repay your loans.

PRO: You remain in your home.

CON: Because of additional debt such as credit cards, car payments, medical bills, and student loans, most people do not qualify for a loan modification. If you purchased your home with little or no money down or your home has depreciated in value at a rate at or near the national average, you may not qualify.

Deed-in-lieu of foreclosure

If you are unable to bring your loan current or sell your home in a reasonable amount of time, your lender may agree to have you voluntarily transfer the deed to the property to them to help avoid the impact of a foreclosure on your credit rating.

PRO: By voluntarily transferring the deed, you save your lender tens-of-thousands of dollars in foreclosure proceedings. If you are willing to do this, Fannie Mae has reduced the mandatory waiting period to establish credit history to a minimum of 4 years. This mandatory waiting period after a deed-in-lieu of foreclosure is lower than the required 5-7 years following a foreclosure.

CON: Although a deed-in-lieu of foreclosure may have less impact than an actual foreclosure on your ability to establish homeownership in the future, if you are going to cooperate with your lender and take a proactive approach, a short sale is generally the better option.

*(Article copied from Program HR3648)

 

.......and GET STARTED NOW

Does Loan Modification STOP FORECLOSURE?

Loan modification does not stop foreclosure. Some homeowners think that they are SAFE while negotiating a loan modification and by complying with all the requirements that their mortgage company is asking for. The mortgage company does not stop; they will still move forward with the foreclosure sale.

SUGGESTIONS:

In my opinion homeowners should have a back-up plan in case the loan modification gets disapproved.

You should save as much money as possible, being you are not making the payment in the process. Saving money can only help you.

If your mortgage company told you that the foreclosure sale has been stopped, I suggest not to take a chance in believing it, ask them to submit it in writing or contact the bank attorney for confirmation.

What is BANKRUPTCY; as Other Options?

In filing Chapter 13 or Chapter 7, it legally postpones the foreclosure sale. The Bankruptcy court immediately issues The Order for Relief which allows the homeowner an Automatic Stay for three to four months. However, the lender can file a Motion to Lift the Stay, and if granted by the court, you may not get the full three to four months. This allows the lender to proceed with the scheduled foreclosure sale. Unfortunately, bankruptcy DOES NOT STOP the clock. Normally it postpones the sale by at least two months even if the lender is slow in filing the motion to lift stay.

Chapter 13:

It gives the homeowner a certain number of years to catch up with the mortgage payment they missed. In some cases a payment plan can be up to a period of five years. To KEEP your home and AVOID foreclosure: Watch your budget and make enough income. You must meet your CURRENT MORTGAGE, WHILE paying your UNPAID PAYMENTS.

Chapter 13 may help you eliminate the payments of your 2nd & 3rd mortgage. If the value of the home dropped, your First Mortgage is SECURED by the entire value of your home. Most likely, the property will have no more equity to secure the later mortgages. The 2nd & 3rd mortgages will be re-categorized as an unsecured loan; which under Chapter 13 takes last priority and possibly may not have to be paid at all.

Chapter 7

This wipes out Credit Cards and other General Debts. In 2005, Bankruptcy Abuse Prevention and Consumer Protection Act was created; not everyone is eligible under this act. You may not be eligible if your average gross income, for the past 6 months following the date of filing exceeds the state median income for the same size household. Chapter 7 stalls the foreclosure sale; it gives the homeowner time of two or three more months to save enough money and secure a new place to live.

Does Bankruptcy Affect Credit?

Bankruptcy and foreclosure will damage your credit score.

In some cases it is UNAVOIDABLE.

Important Note:

MAKE SURE you ask an EXPERIENCED BANKRUPTCY ATTORNEY, what bankruptcy can do and if it is a good option before your loan modification falls through or to postpone your foreclosure sale.

Don’t know your OPTIONS and need details on OTHER ALTERNATIVES? Fill this out
OTHER ALTERNATIVES

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