ARE YOU FACING FORECLOSURE?

Recent events in the real estate market have led to a record number of foreclosures in the Santa Monica and Los Angeles area and nationwide. Below, I’ve listed the most likely situations that lead to a property being foreclosed on….

• An underqualified loan issued between 2003 & 2007 when lenders were approving loans with minimum criteria.  
• Adjustable Rate Mortgage which has reset.
• Homeowner unable to keep up with current mortgage payments due to a change in financial circumstance
• Divorce
• Death
• Relocation
• Medical expenses
• Over valued properties
• Predatory lending/mortgage fraud
• Loss of job
• Reduction in income
• Unable to sell property as a traditional sale due to market conditions

Whichever situation might have lead you into foreclosure, the fact is that a foreclosure on your credit rating will tarnish your credit for at least 5-7 years. Your credit is worth more than you might think. It can affect everything you do from renting an apartment, obtaining a credit card, determining your auto insurance rates, getting a new job, and purchasing a vehicle. Once you lose a large asset such as a property in a foreclosure, creditors will take this to heart. Creditors will either not extend credit to you or will charge you very high interest rates because you are a higher risk. Moving on with your life after a foreclosure can be quite difficult.

YOU HAVE SOLUTIONS…

As a real estate agent who specializes in Short Sales, I  have am on a mission to personally help as many people as possible in this situation AVOID FORECLOSURE. You do have options available to you to avoid foreclosure and this is where I come in. First, you need to understand these facts about foreclosure…..

• Over 95% of realtors have no idea of how to handle short sales and foreclosures
• Many “professionals” fail to let you know your options
• Over the next 2-3 years, the real estate market will continue to see a record number of foreclosures come into the marketplace keeping property values from rising
• Lenders DO NOT want to foreclose on your home
• Lenders are in the business of lending money not taking homes back and then reselling them
• You may be in foreclosure, but YOU STILL OWN THE PROPERTY AND HAVE CONTROL OVER YOUR OUTCOME!!!

WHAT ARE YOUR OPTIONS?

Your options depend on what you want to do with your property.

Do you want to stay in your home or just get out of it all together?

Can you keep up with your monthly payments or is that just not possible any longer?

Could you keep up with your monthly payments if you had a lower interest rate?

The answers to these questions can help in determining what your best option may be. For a full list and brief explanation of your options you can click here to read about Alternatives to Foreclosure..

Here are some other facts about foreclosures you should consider.

• In California, the foreclosure process is somewhat speedy once a Notice of Default has been filed. All of the stories you’ve heard about people staying in their homes for a year or more after default may have been true in 2009 & 2010 while the banks were sorting through the volumes of files. Effective 2011, we can expect to see foreclosure timelines conforming to historical standards. Therefore, after you have missed your first payment it might only take 6-7 months before your lender will actually foreclose on you and repossess your property.
• For the Banks/Lenders the foreclosure process is COSTLY. They don’t want to be in the business of repossessing properties, maintaining properties, and then selling these properties.
• Lenders do not like excess inventory or foreclosures on their books
• Lenders can lose a lot more money if the property goes to auction
• Lenders are not in the business of selling properties they are in the business of loaning money to people who buy properties. Selling properties is looked at as a loss to their bottom line.
• A home owner who goes through foreclosure is ineligible for a Fannie Mae backed loan for 5 years thereafter, and an investor owner for up to 7 years.
• Future mortgage loans and interest rates will be affected because the foreclosed homeowner must answer “Yes” to form 1003 Uniform Residential Loan Application question “Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?”
• A foreclosure affects credit scores downward 150 to 300 points, typically for over 3 years.
• Foreclosure stays on credit history for approximately 10 years.
• Current and future employment may be affected as many employers now require credit checks, particularly for employees in financial or sensitive positions.
• Outside of being convicted of a crime, foreclosure is the most serious issue affecting security clearance for a job. For those who have careers in law enforcement, the Military, a security company, the CIA or other government agencies, a foreclosure could mean the immediate loss of the security clearance and the position.

Remember, if you are facing a foreclosure, you DO have options and alternatives. The sooner you act, the more options you have. We strongly encourage you to call 310-487-0099 for a consultation where we can further assess your situation.

As a pre-foreclosure specialist, I can help you in your difficult situation. I can put you in touch with an attorney who specializes in these situations and provide you with a full loss mitigation team of professionals who know how to negotiate with your lender(s). You will be covered every step of the way.

And remember our services are free of cost to you. We earn our commissions by negotiating a successful short sale and selling your property. Our commissions are paid by your lender.